7 stocks propel CNX Nifty

STOCK REPORT

Reliance Petroleum, Steel Authority of India (SAIL), Sterlite Industries, IPCL, ABB, BPCL and Punjab National Bank, which are not part of the Sensex, lifted the S&P CNX Nifty to a new all-time high on Monday.

S&P CNX Nifty on Monday closed an all-time high of 4260.90 despite of the 30-share Sensex trailing more than 200 points from its lifetime closing high of 14,652.09 on February 8, 2007.

S&P CNX Nifty is calculated on a total market capitalisation basis, while Sensex is calculated on free-float market capitalisation.

Reliance Petroleum's price appreciated 39 per cent from Rs 68.55 on February 7 to close at Rs 95.05 on Monday. IPCL gained 25 per cent to Rs 348.05 (Rs 279.55), SAIL 24 per cent to Rs 144.69 (Rs 116.35) and Sterlite Industries 14 per cent to Rs 559.79 (Rs 489.35). BPCL, ABB, and Punjab National Bank appreciated over 8 per cent.

Automobiles stocks such as Bajaj Auto, Mahindra & Mahindra and Tata Motors are among the laggards, declining more than 20 per cent each from from February 7 levels.

NewsWire18 adds: Nifty ended at all-time closing high on Monday on the back of heavy gains in energy and steel shares.

Firm Asian markets on Monday, which rose tracking gains in US markets on Friday, saw the Nifty touch a new lifetime peak intraday.

Also, sentiment was boosted as Chinese indices recouped early losses on speculation of higher interest rates will not discourage investors. Bank of China late on Friday raised interest rates and asked banks to put aside more money for reserves.

The National Stock Exchange's Nifty ended at 4260.90, up 46.40 points or 1.1 per cent. It touched a lifetime high of 4269.35 and an intraday low of 4217.55.

The Bombay Stock Exchange's Sensex ended at 14418.60, up 115.19 points or 0.8 per cent, after touching a low and high of 14362.63 and 14451.30 intraday.

The CNX Midcap and S&P CNX 500 indices were up 1 per cent each.

Dealers said reports suggesting interest rates have peaked and Prime Minister Manmohan Singh's comment that prices are coming under control has relieved worries over interest rate hikes in the near future.

The PM said inflation would be brought down to 5 per cent in the next two months.

Among frontliners, investors lapped up shares of steel, healthcare, and oil and gas companies, dealers said. The BSE Oil and Gas Index ended up 3 per cent, BSE Metal Index up 2.5 per cent and BSE FMCG climbed 2 per cent.

Reliance Energy jumped 8.5 per cent to Rs 555 after promoters hiked their stake in the company by 5.8 per cent to 34.45 per cent through a block deal of 13 million shares at Rs 518 a share on the Bombay Stock Exchange.

Sun Pharmaceutical ended up 5.2 per cent at Rs 1,066 as the company is set to buy Israel's Taro Pharmaceuticals for $454 million (Rs 18,600 crore), in an all-cash deal.

Steel Authority of India rose 4.1 per cent to Rs 145 after reporting Jan-Mar earnings above market estimates. Net profit rose 72 per cent to Rs 1,900 crore, while sales grew 16 per cent to Rs 10,300 crore. Tata Steel was up 5.3 per cent at Rs 623, and Sterlite Industries, up 2.2 per cent at Rs 560.

Brokerage Prabhudas Lilladher has maintained "market performer" rating on Tata Steel.

Balaji Telefilms ended up 20 per cent at Rs 241. Analysts said the stock will see resistance at Rs 250.

The worst hit among Nifty shares were: National Aluminium, down 2.7 per cent, Tata Motors, down 2.2 per cent, and Satyam Computer Services, down 2 per cent.

Tata Motors ended down after the company on Friday reported Jan-Mar earnings slightly below market estimates. Sentiment for the stock was also affected, as violence erupted at the company's small car project site in Singur Sunday.

Most brokerages, while maintaining rating on the stock, have cut the stock's target price.

Technology shares were among the worst hit as the rupee, currently at 40.61 to $1, continued to strengthen against the dollar. Dealers said it was likely to rise to Rs 40 to $1 before it can stabilise and witness good buying.

Dr Reddy's Laboratories erased gains and ended down 1 per cent at Rs 659. The stock had risen earlier on better-than-expected Jan-Mar earnings, reported Friday.