Bargain buying saves the blushes

STOCKS REPORT

The 30-share BSE Sensex regained all its Monday's losses on Tuesday as bargain hunting emerged in most frontline stocks.

Among the 30 share index, Tata Motors was the biggest gainer to close at Rs 394.45, up 7.61 per cent from its pervious close. The NSE S&P CNX Nifty index also gained 24.30 points, or 1.64 per cent, to end at 1,507.90.

Analysts attributed today's gains to bargain hunting at lower levels in those counter which were battered in the past few trading sessions.

As a result, smart gains were witnessed in auto, cement and oil PSUs with only five stocks of the Sensex basket ending in negative zone.

Auto major, Tata Motors was up 7.61 per cent to Rs 394.45 after hitting the day's high of Rs 403 on renewed buying interest, while Maruti Udyog ended 3.98 per cent higher to close at Rs 402. Hero Honda, which announced impressive sale figures for April was up 3.60 per cent to Rs 462.25 while Bajaj Auto gained 3.22 per cent to Rs 900.

Cement pivotals Grasim was the biggest gainer among the cement stocks gaining 4.98 per cent to Rs 1,100.80, ACC gaining 3.42 per cent to Rs 245.10 while Gujarat Ambuja Cements ended 1.04 per cent higher at Rs 286.65.

Other second rung cement stocks also gained such as Madras Cement, Birla Corporation, India Cements, Mangalam Cement, Madras Cement, Century and Kakatiya Cement gained in the range of 2 to 7 per cent in today's trading.

Among the PSU's, HPCL gained on value buying after the company declared a dividend of 160 per cent for the financial year 2004.

The company for the quarter ended March 31, the company posted a net profit of Rs 527.05 crore as against Rs 634.12 crore in the same quarter last year on total income of Rs 14,700.90 crore (Rs 13,896.94 crore).

Even BPCL witnessed a smart recovery with the stock gaining 9.49 per cent to close at Rs 324.10.

Index heavyweights also contributed to the Sensex gains with ITC, up 2.58 per cent to Rs 901.60, while State Bank of India and Reliance Industries gained 0.87 per cent and 0.85 per cent to Rs 469.05 and Rs 434.15, respectively.

However, HDFC declined 3.41 per cent Rs 559.10, before hitting the day's low of Rs 548. Even BHEL slipped 2.32 per cent from Rs 452.50 to Rs 420.35 before settling at Rs 425.