Thursday February 21, 03:30 PM
Pre-budget cautious optimism... |
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Though markets have closed in the positive territory, profit booking increased towards the end of the day. Select banking, auto and pharma stocks were the favored block today. Activity was mixed amongst PSU stocks. Activity in commodity stocks was also dull.
The BSE Sensex closed at 3,570 (up 12 points) and the NSE Nifty closed at 1,150 (up 4 points). The rupee was trading at Rs 48.63 per US dollar.
Auto stocks have been buzzing with activity. Hero Honda (HROH.BO, news) , Telco, M&M, Ashok Leyland (ASOK.BO, news) , Escorts (ESCO.BO, news) and LML lead the auto bandwagon. Ashok Leyland was up 10%. The rising positivism over CV volumes going forward seems to be seeping into this No. 2 CV major's stock price. The stock is trading at new 52-week high levels. Apart from demand recovery, most of the auto majors have been on a restructuring spree, which would enable them to improve operating margins even if demand recovery is not that sharp.
IDBI Bank (IDBK.BO, news) was up 5%. Considering the fact that IDBI (IDBI.BO, news) has announced its plan to become a universal bank by merging with a larger public sector bank, reverse merger with IDBI Bank seems to be unlikely. One of the key negatives for the bank is its parent. Barring Vysya Bank and Global Trust, all other private sector banks were in demand. The hike in FDI limit could be the reason behind this rally.
Activity was dull in cement stocks. While ACC was up marginally, the other top four majors were weak. Except for Digital, Hughes Software and Wipro (WIPRd.BO, news) , all other top rung software stocks gained. Most of the telecom stocks were also up today. After touching Rs 38 levels yesterday, Bharti gained 3% today.
Amongst media stocks TV 18 was the top gainer (up 8%). Though it is the market leader in the business news segment, competition is increasing. Besides, several companies have cut back on adspend in light of the slowdown in the economy. The first nine months performance reflects the trend. Going forward also, prospects are challenging.
Gillette was the top mover in the FMCG sector (up 8%). The restructuring exercise initiated by its parent augurs well for the company in the long run. HLL and Nestle were also firm.
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