A look at the band-hitters in the last two days throws up hitherto forgotten names like Gramaphone Company of India, Birla 3M, Amtrex, Apollo Hospitals, Chemplast Sanmar, JK Industries, Hindustan Construction, Emco, Denso India, Deepak Nitrite, etc. Even among the Group A stocks, operators now seem to be targeting less-fancied and low-priced scrips like Nocil, Ceat, Godrej Soaps, GNFC and Hindustan Motors.

A look at BSE's advances and declines throws up an interesting pattern (see table). Until a few days ago, the advances in Group A far outnumbered the declines, whereas in Group B1 and B, the reverse was true. On June 28, forinstance, 119 Group A stocks advanced, while only 25 declined (4 remained unchanged).

On the other hand, in Group B, around 52 per cent of the stocks saw their values declining, while only 32 per cent advanced. In Group B1, over 50 per cent of the stocks declined, while 41 per cent advanced. However, the trend has reversed now. On Wednesday, only 41 Group A stocks advanced, while as many as 105 scrips saw their value declining. But in Group B and B1, a majority of the stocks have advanced.

Driving these stocks on the bourses are a number of factors. These include a good financial performance in financial year 1999 or news of restructuring or a tie-up (both financial and technical). Many of the mid-cap companies also have good brands. Consider the case of Gramaphone Company of India.

With a household brandname like HMV under its belt, the company has been growing by leaps and bounds. It had a strong showing in fiscal 1998-99, with a 42 per cent jump in net profit from Rs 2.7 crore to Rs 3.8 crore, withmargins at the net and operating level rising substantially. With a small equity of Rs 7 crore and a PE of only 13, the scrip is an attractive bet.

Birla 3M is another company with good brands and a strong parent backing. 3M Corporation of the US owns around 75 per cent of the company's Rs 11 crore equity capital. Birla 3M fared well in fiscal 1999 and a good showing is expected in the first-quarter of the current fiscal as well.

For the quarter-ended June 1999, the company is likely to earn a net profit of Rs 4-5 crore, compared with Rs 7.8 crore for the full-year 1998-99. Its brands include names like Scotchbrite, Scotchtape, Stick-ons, etc. Apollo Hospital is another well-known mid-cap company with a slew of hospitals around the country. The company has posted good results in 1998-99 with a net profit growth around 30 per cent and with its major expansion drive, is slated to become one of the major hospital chains in India.

Air-conditioner manufacturer Amtrex Appliances is another well-known mid-capcompany. With Hitachi's backing and a good order-book position, the company is expected to post good results. Petron Engineering is another good bet as the company has an excellent clientele which includes most of the top Indian corporates. Second-rung paper, construction and engineering stocks are also on the rise, thanks to the `economic revival theory' gaining ground.

However, unless there are clear signs of the economy picking up, investment is not advisable.