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Wednesday, November 29, 2006

Small-cap, mid-cap stocks to the fore


Sensex pared gain in afternoon trade. But a host of small-cap and mid-cap shares held firm.

Select side counters surged. Side counters Vapi Paper (up 20% to Rs 15.06), Micro Tech (up 20% to Rs 261.75), Machino Plastics (up 20% to Rs 65.15), Fortis Financial (up 20% to Rs 74.20), Pioneer Embroideries (up 20% to Rs 109.10), Torrent Power (up 20% to Rs 84.80), Gujarat NRE Securities (up 18% to Rs 31.75), Alphageo (up 10% to Rs 168), Surya Pharma (up 10% to Rs 82), Godfrey Phillips (up 10% to Rs 1254.60), EIH Associated Hotels (up 10% to Rs 160.55), Ind-Swift Labs (up 9% to Rs 61.35), and Balkrishna Industries (up 8% to Rs 517) surged.

A number of small-cap and mid-cap stocks were up by between 3% to 7% for the day.

The market breadth remained strong. 1793 shares rose on BSE as compared to 672 shares that declined. 64 shares were unchanged. Gainers outpaced losers by a ratio of 2.6:1.

At 13:26 IST, Sensex was up 35 points at 13,637. Sesnex came off from 13,656 to 13,673 range it had hovered at in early afternoon trade.

Sensex had surged over 100 points in opening trade. It had pared gains later. It turned range bound in mid-morning, early afternoon trade.

Sensex’s low was 13,617.12 and high 13,711.76 so far.

ICICI Bank lost 0.1% to Rs 860.60. The stock had risen over 1% in early trade to Rs 873.25.

Gujarat Ambuja Cements lost 0.1% to Rs 143. The scrip had firmed up in morning trading when it had gained as much as 1.8% to 145.90.

Reliance Industries (up 0.6% to Rs 1258.50) though it held positive zone, the stock pared gain. The scrip had gained as much as 1.1% to a high of Rs 1265 in early trade.

L&T (up 0.3% to Rs 1388) too pared gain. The stock had risen as much as 1.2% to Rs 1400 in early trade.

ITC firmed up. The stock was up 2% to Rs 183.40.

Grasim rose 2.3% to Rs 2779 and it was the biggest gainer in 30 Sensex scrips.

Tata Steel rose nearly 1% to Rs 480.40 after Anglo-Dutch steelmaker Corus Group said on Wednesday its third-quarter earnings rose 63% on the back of higher steel prices. Corus last month agreed a 4.3 billion-pound takeover offer from Tata Steel. However, Brazil's Companhia Siderurgica Nacional has since proposed making a higher bid and it has been conducting due diligence with the help of senior Corus management. Corus this week delayed a shareholder meeting to vote on Tata's takeover offer until Dec. 20.

State Bank of India added 1.5% to Rs 1313. The stock hit a high of Rs 1324.70 which is a lifetime high for the scrip. A block deal took in State Bank of India in the FII segment that took place in early trade at Rs 1552, about 20% premium over Tuesday’s closing price

Select auto shares were in demand following reports that the government is likely to announce a cut of Rs 2 per litre in price of petrol and a cut of rupee one per litre in diesel. Bajaj Auto rose 1.8% to Rs 2687, and car major Maruti Udyog gained 1.3% to Rs 926.50.