Rain, sales lend shine

STOCKS REPORT

Revival in monsoon and strong July sales numbers from auto companies resulted in fresh buying in old economy and auto stocks.

The market gained for the third consecutive day, as the benchmark BSE Sensex ended 32.21 points higher to close at 5,202.53. The activity in the market was however, lacklustre with total turnover on the BSE accounting for mere Rs 1,553 crore.

Brokers said, the renewed buying in old economy stocks was on back of revival of monsoon and encouraging corporate results for the quarter ended June 30 indicating strong growth. Of the 30 share BSE basket, 12 stocks ended negative while among the gainers, auto major Bajaj Auto was the biggest gainer, gaining over 3.5 per cent.

Among the indices, the BSE PSU index was the biggest gainer, up 1.36 per cent on the back of strong gains in oil stocks. ONGC stock ended 2.28 per cent higher to close at Rs 732.65 on fresh buying.

Auto stocks were among the gainers after most two-wheeler companies announced growth in July sales numbers compared to last year. Bajaj Auto stock was up 3.72 per cent to Rs 852.70, Hero Honda Motors stocks was up 2.13 per cent to Rs 438.05, while TVS Motor ended 4.60 per cent higher to Rs 67.15.

FMCG major Hindustan Lever was up 2.50 per cent to Rs 119.10 after a recent sell off on hopes that the revival in monsoon may revive the company's fortunes.

"There markets seems to have cheered the good news on the monsoon front, but the high crude oil prices could prove a spoilsport," said a senior executive with a domestic brokerage firm.

Reliance Industries stock gained 1.07 per cent to Rs 494.17, before hitting a high of Rs 494.80 on the back of strong volumes of more than 20.60 lakh shares traded on BSE on Monday. Aluminium major Hindalco was down 3.11 per cent to Rs 1,066.95 following flat quarterly results announced on Saturday.

Hind Oil Exploration was frozen at the 20 per cent upper limit of Rs 49.70 after Indian Oil Corp confirmed its entering into an agreement with HOEC for acquisition of participation interest in PY-1 and CY OSN 97/1 block. Over 11.54 lakh HOEC shares were traded.