IPO interest adds sheen

STOCKS REPORT

Key indices made a strong come back on Friday as buying interest resumed after a recent fall from the higher levels.

The market sentiment improved following a sharp increase in subscriptions to the ongoing public offers of IBP, Dredging Corporation, CMC, IPCL and GAIL India.

The 30-stock Bombay Stock Exchange Sensex ended with a gain of 100.39 points, or 1.80 per cent, at 5,667.51, off from the day's low of 5,551.64.

On the National Stock Exchange, the S&P CNX Nifty Index rose 34.50 points to end at 1,800.30, off from the day's low of 1,763.95. Today's gains were led by state-run and select bluechip stocks. ONGC rose 2.37 per cent to Rs 718.10, off from the day's high of Rs 721, on sustained buying on hopes that the company's proposed public offer of 10 per cent equity would be priced aggressively.

Engineering major Bharat Heavy Electricals rallied 3.30 per cent to Rs 580.90, Hindustan Petroleum added 3.12 per cent to Rs 454.90 and MTNL edged up 2.17 per cent to Rs 136.45 on renewed buying interest, after the recent weakness.

"Selling pressure was considerably less after the liquidation of positions on Thursday, and buying was stronger across-the-board," said Govind Agarwal, senior vice-president of institutional securities at Motilal Oswal Securities.

"Also, participation in the share offers of public sector units has improved and traders are confident of aggressive pricing of the remaining offers," he said.

The offer of Indian Petrochemicals, which closed on Friday, was oversubscribed three times. Its shares rose more than three per cent to Rs 187.65.

Offers of oil retailer IBP and Dredging Corporation of India were also fully subscribed late on Friday. Computer maintenance firm CMC, whose offer closes on Saturday, rose 3.25 per cent to Rs 560.60.

Elsewhere, Reliance Industries rose 2.08 per cent to Rs 554.65 on renewed buying interest. State Bank of India added 1.79 per cent to Rs 585.30 on strong institutional buying interest. Cigarette major ITC edged up 0.88 per cent to Rs 1,099.50.

Hindustan Lever vaulted 0.84 per cent to Rs 174.10, while HDFC Bank declined from Rs 627.50 to a low of Rs 605 before settling at Rs 609.90, down 2.33 per cent from its Thursday's close. Hindalco lost 1.14 per cent to Rs 1,249.75 and Dr Reddy's Labs tumbled 0.68 per cent to Rs 1,240.05.

Meanwhile, automotive stocks gained on expectations of strong February sales. Bajaj Auto, the No. 2 motorcycle maker, was up nearly five per cent to Rs 906.60.

Bus and truck maker Tata Motors gained nearly three per cent to Rs 510, while Hero Honda Motor lost 0.60 per cent to Rs 493.15.

Technology stocks gained, tracking Nasdaq. Bellwether Infosys Technologies rose more than four per cent to Rs 5,071.90 and Satyam Computer Services gained seven per cent to Rs 309.60.

Elsewhere, cement stocks too rose. ACC rose 5.31 per cent to Rs 259.80 on selective buying interest. Gujarat Ambuja Cements added 2.87 per cent to Rs 308.60 and Grasim rose 0.89 per cent to Rs 1,071.10 on renewed buying interest.