Fmcg, Pharmaceutical Stocks Score

The stock markets staged a marginal recovery last week, with the Sensex gaining nearly 212 points over the previous weeks close. Aggressive buying was particularly noticed in pharmaceutical and fast moving consumer goods (FMCG) stocks. By and large the overall volumes at the stock market continued to remain low.

Sensing the change in market sentiments, the 30-scrip BSE Sensex last week closed at 3540.91 up by 211.74 points over the previous weeks close of 3540.91.

According to market sources, though there was selective buying by US-based funds, the stock market went up more on account of front running by local brokers for the foreign institutional investors (FIIs).

 

The FIIs, which remain net sellers over the past few weeks, are expected to enter the Indian markets by last week of December or early January, once the fresh allocation for Asian countries are decided.

Among the FMCG stocks which witnessed an upward movement on the BSE were Hindustan Lever which was up by Rs 139 to close at Rs 1,395, ITC at Rs 589 (up Rs 40), Reckitt and Coleman at Rs 389 (up Rs 24) and Procter and Gamble at Rs 500 (up Rs 40).

Other than FMCGs, pharmaceutical stocks which witnessed an upswing on the BSE were German Remedies at Rs 294 (up Rs 26), Parke Davis at Rs 229 (up Rs 16), Burrough Welcome at Rs 29 (up Rs 18) and Glaxo at Rs 388 (up Rs 26). The NSE-50 last week close at 1028.40 up by 49.40 points over the previous weeks close of 979.85. According to BSE brokers, though stock market volumes will continue to remain sluggish, key pivotals will continue to generate buying interest which will result in stock prices moving up, since at present their is scarcity of floating stock in the market.

The sensex might touch the 3600-level by end of the month since FIIs have started showing renewed interest in some sectors though uncertainty on the political front still looms large, said a fund manager with a domestic financial institution.

New Delhi: Shares of blue-chip companies, particularly of multinationals and automobiles, rebounded during the week under review on sizeable buying by FIIs along with select buying by domestic financial houses and prices jumped up to close with notable gains spread over a wide front Along with the rising trend, in day-to-day persistent buying support, the Delhi Stock Exchange sensitive benchmark index began higher at 710.08 and rose to finish at 745.62, disclosing a steep rise of 44.96 points or nearly six percent. Share prices moved in a restricted range on alternate bouts of buying and selling. However, brisk all-round buying by foreign as well as domestic financial houses at the fag-end, picked up prices significantly.

Fixing of heavy backwardation charges (ulta-badla) at select leading counters on the BSE also generated speculative buying here.

In the presence of rising trend, the bear operators were forced to square up their short position which gave further push to market sentiment.