Ranbaxy Laboratories was one of the most impressive gainers today, jumping 5.81 per cent to Rs 617.30.
In late afternoon trades, the scrip recovered from its intra-day low of Rs 583 and touched a high of Rs 621.80. Total volume stood at 3.77 lakh shares on the Bombay Stock Exchange today.
The current surge is a solid turnaround as the scrip had lost 16 per cent to Rs 583.40 from Rs 692.80 between 6 and 19 March 2003.
It is understood that Unit Trust of India (UTI) was active at the counter and in pharma stocks in general today owing to their attractive valuations.
According to an analyst, Ranbaxy is set to benefit from the post-war demand for anti-infectives in Iraq.
The US is expected to grant substantial aid to that country.
The drugs may be routed to Iraq via the US. Ranbaxy has a strong marketing foothold in the US.
Meanwhile, pharma stocks have been affected of late on the reckoning that domestic sales would be adversely affected due to the introduction of uniform value added tax at the rate of 12.5 per cent from 1 April 2003, replacing the sales tax levied by various state governments.
Technology players get a boot-up
Technology stocks, dependent on exports for their fortunes, were well supported by institutions and operators despite war manifesting in west Asia.
The rationale for this was that the war would not last for long and would not disrupt the global economy significantly. In fact, it is reckoned that all possible negative outcomes of war have already been factored in by the market, so techs have a downside support as well.
The three software scrips in the sensex emerged strong today - Satyam Computer was up 5.87 per cent to Rs 205.70, HCL Technologies rose 4.55 per cent to Rs 160.75 and Infosys Technologies increased 4.51 per cent to Rs 4,378.85.
Non-sensex technology stocks such as Wipro rose by 167 per cent to Rs 1,358.40, while Polaris reared up 10.47 per cent to Rs 132.90.
The scuttlebutt is that apart from operators, the Government of Singapore is buying at the Satyam and Polaris counters.
Infosys Technologies, on the other hand, is said to have the backing of Prudential ICICI and ABN Amro Broking. The low valuations of technology counters is prompting the current buying, it is believed.
These stocks had been hammered over the last few sessions. But analysts warn that earnings of software companies may be hit hard in case the war prolongs as it could stymie order inflows from the US, hitting revenues adversely.
Meanwhile, the computer software sector, comprising 113 large, medium and small companies, has lost 6.85 per cent, or Rs 6,259.79 crore in market capitalisation over the last month on war worries.
Automobile counters vrooom ahead
Automobile sector shares saw fortunes swell today as global crude oil prices plunged to 3-month lows in the wake of war breaking out in west Asia.
The top gainers included motorcycle major Hero Honda, which was up 5.72 per cent to Rs 229, and Bajaj Auto, up 3.12 per cent to Rs 499.15.
While, Hero Honda clocked a volume of 3.21 lakh shares, Bajaj Auto saw a volume of only 40,735 shares on the BSE.
A surge in global oil prices over the last few months on the back of escalating tensions between the US and Iraq had pressured much of these stocks lower. A rise in oil prices has an indirect impact on automobile sales.
Over the last month, the combined market capitalisation of five commercial vehicles makers dropped 6 per cent to Rs 6,423 crore on March 19, 2003.
The combined market cap of five scooter makers plunged 7.7 per cent during this period to Rs 5,169 on March 19, 2003. The market cap of four bike and mopeds manufacturers declined slightly to Rs 5,472 crore.
In addition, domestic oil companies hiked prices of petrol and diesel by between Rs 1 to Rs 1.50 just a few days ago.
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