Renewed support to old economy stocks on Lyons Range

By A Special Correspondent

KOLKATA, AUG. 12. Old economy shares stole the limelight on the Calcutta Stock Exchange last week attracting renewed support which, besides pushing up the volume, lifted their values markedly helping to maintain the indices. Cement shares were actively traded with some of them posting appreciable gains because of sustained buying.

This development was ascribed to reports that some of the cement majors had achieved higher sales during June and July despite monsoon. This has been interpreted by marketmen as an encouraging sign in respect of demand pattern for the commodity. When the growth in sales is noted during normally lean period of monsoon, it must show a substantial increase in other months to come, it is argued in this regard.

Pharma counters were also generally bright with Ranbaxy recording sharp gains assisted by sustained buying. Elsewhere in the list the Reliance Industries surged to post marked gains in lively dealings following renewed interest evinced by both investors and speculators. Castrol was yet another firm spot with Telco moving into spot light on brisk support which lifted the scrip substantially upwards as the week finished. In contrast, however, the technology counters continued to stay in the bearish zone experiencing relentless selling pressure let off by discouraging report from Mumbai. This followed depression in IT shares in the Global bourses, especially the U.S. market, resulting in a dip in the widely watched Nasdaq. Virtually all the shares in this group drifted into the minus territory with some posting major losses.

With the leading IT shares losing substantial ground, the indices failed to make much headway with BSE sensex pegged at 3316.21 points against previous week's closing of 3325.38 points. The CSE's 40-share index, however, gained some ground reflecting mainly the increase in some of the index weighted shares like Hind Lever and RIL. The index closed at 1734.80 points compared to 1726.48 points.

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Section  : Business
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