Rally Restricted To Sensex, A-Group Stocks

The current rally in stock prices is restricted to the Bombay Stock Exchange Sensex stocks with most of the shares in the A, B1 and B2 groups still hovering around their September 1, 1998, levels.

While the Sensex rallied by 300 points (10.47 per cent) between September 1 and 15, the A group, which includes Sensex stocks, appreciated by 8.58 per cent, a net gain of 10.47 per cent. B1 stocks lagged behind, gaining only 4.10 per cent, while B2 shares saw price depreciation of almost one per cent.

The rally of over 300 points during last 15 days was piloted by stocks which had hit their 52-week lows. Among these, IPCL appreciated by 32.80 per cent, Hindalco gained by 24 per cent, HPCL moved up by 23.39 per cent and Mahindra & Mahindra recovered by 20.1 per cent.

 

Reliance Industries, BHEL, Larsen & Toubro and Arvind Mills moved up between 15 and 20 per cent, while Telco, ACC, SBI, Gujarat Ambuja Cement, ITC, MTNL, Indian Hotels and Glaxo appreciated between 10.5 and 15 per cent.

However, the Sensex stocks-led rally failed to provide some impetus to B1 and B2 stocks. Though 349 out of 900 stocks in B1 group appreciated by four per cent, 527 shares in B1 group registered a decline over their September 1 price.

The B2 group, which seldom moves with the market, depreciated by almost one per cent. While 417 stocks in B2 managed to maintained the price at the previous level, the tags of 410 others declined over their September 1, level. Among the top gainers in the A group, which appreciated more than the average Sensex gain of 10.47 per cent , eighteen are the Sensex stocks.

Supreme Industries, which gained 46.54 per cent, tops the A group list. Among other A group shares, Excel Industries gained 46.12 per cent, Finolex Cables 39.65 per cent and Apollo Tyres 31.13 per cent.

While 128 shares in the A group ascended, 22 shares in the group depreciated over their September 1, levels.

Software stocks, which have gained appreciably in the declining markets, failed to keep apace and declined by over two per cent.

NIIT declined by 11.1 per cent while Satyam Computer moved with the trend, gaining 11.36 per cent. Infosys Technologies spiralled lower by over four per cent while Pentafour Software and Wipro registered marginal gain of two per cent. Most of the sundry software stocks showed over 20 per cent decline.