Metal indices stage a comeback

Thanks to a firm trend in global metal prices, metal stocks forced their way back into the reckoning again. Mirroring the gains recorded by stocks in the sector, the BSE Metal index rose nearly 4.08 per cent on Wednesday.

Basic metal makers rose tracking firm global copper and zinc prices which hovered at all-time highs. Sterlite Industries jumped 6.73 per cent to Rs 2,435.85, Hindustan Zinc (HZL) rose 5.43 per cent to Rs 946.30 and Hindalco advanced 4.10 per cent to Rs 214.40. HZL got boost from reports that the company had raised zinc prices by a steep Rs 10,200 per tonne.

Steel shares surged on firm global prices. Tata Steel jumped 5 per cent to Rs 654.20 and Sail rose 3 per cent to Rs 84.30. Steel firms had raised prices in April on the back of firm global prices.

Led by Maruti Udyog, auto stocks surged and lifted the BSE Auto index by 2.98 per cent. Oil & Gas, PSU, IT, FMCG and Teck indices climbed up 2 per cent - 2.9 per cent. Healthcare index firmed up by 1.17 per cent. BSE Midcap and Smallcap indices went up by 1.57 per cent and 1.82 per cent respectively.

The gains were less pronounced in banking, capital goods and consumer durables sectors. Still, even the sectoral indices tracking the performance of these stocks, moved by between 0.6 per cent and 0.95 per cent on Wednesday.

Buoyed up by impressive quarterly earnings, car maker Maruti Udyog rallied to the top spot on the Sensex gainers list on Wednesday. The stock, which hit a high of Rs 927.90, settled at Rs 823.45, netting a gain of 6.45 per cent.

Cipla jumped nearly 6 per cent to Rs 262.55. The company reported 80.6 per cent jump in Q4 March 2006 net profit from Rs 105.58 crore to Rs 190.77 crore. Net sales rose 62.7 per cent to Rs 870.59 crore.

Cement shares staged a comeback after Tuesday's correction. UltraTech Cement jumped 10 per cent to Rs 863.15, ACC rose 4.9 per cent to Rs 968.5, Grasim gained 3.36 per cent to Rs 2,376.95 and Gujarat Ambuja Cements advanced 1.02 per cent to Rs 118.40.

Oil exploration major ONGC (up 4.81 per cent to Rs 1,386.50) firmed up. Index heavyweight Reliance Industries rose 2.63 per cent to Rs 977.85 even as the company denied rumours that it may consider bonus and stock split.