Ranbaxy boosts market, small and mid cap fare well

• Markets slipped back from the day’s high in the last 30 minutes on profit booking on an extremely narrow trading day. The BSE Sensex fluctuated between a high of 18,622 points and a low of 18,454, a range of 168 points or less than one percent. NSE Nifty traded between 5575 and 5525, a range of 50 points. The BSE Sensex closed the day at 18,585 higher by 72 points while the NSE Nifty closed the day at 5561 up by 23 points.

• Mid-cap and small-cap indices faired much better than the benchmark BSE index. Mid cap index was up by 0,56%, while the small-cap index was up by 0.73%, while the BSE Sensex was up by only 0.39%

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[caption id=“attachment_8153” align=“alignleft” width=“380” caption=“Ranbaxy was the star performer today, closed up 6%. Photo by D Sharon Pruitt”]  [/caption]

• Ranbaxy was by far the star performer among the index stocks. The company announced its results on Tuesday after the market closed. Net profit for the company was twice that of market expectation. Buying was witnessed throughout the day with the stock closing at the day’s high at Rs 478.

• SBI which announced a 75 basis points hike also saw good buying with the stock closing at Rs 2,677 up by 1.9%

• Tata Motors closed the day 2% higher at Rs 1210 on news of a sharp improvement in the financials of Jaguar Land Rover (JLR). JP Morgan has come out with a report on the company on the back of JLR’s 1 billion pound bond issue. The company intends to use the proceeds to refinance its debt and for general corporate purpose. JP Morgan has maintained an ‘Overweight’ rating on the company. Conversion of 1 billion pound preference share into equity shares has improved the debt equity ratio of the company from 6 times in December 2010 to 0.5 times currently. The preference shares are all owned by Tata Motors, thus the company tends to benefit from higher holding in JLR.

• SKS Microfinance touched the upper circuit at Rs 328.50, the stock was up 10% for the day and has recovered from a low of Rs 255 it touched on Tuesday.

• Oracle Financial saw a huge jump on announcement of its results. The company posted a 43% jump in its net profit. Oracle closed the day at Rs 2171, higher by 10%. It touched a high of Rs 2250 during the day.

• Hindustan Unilever continued its upward journey after posting its quarterly results, however, today the higher closing of Rs 301.30 was on lower volume, though the stock was up by 1.36%

•Markets breadth remained positive with 1611 advances and 1193 declines. 131 shares remained unchanged.