Four out of 30 Sensex stocks fail to take part in 11K rally

Mumbai, March 21 | Updated: Mar 22 2006, 06:42am hrs
The 30-share Sensex journey from 10k to 11k in 29 trading sessions has seen 26 of its constituents ending the period in the black while there were four leading stocks which ended the 29 day period in the red. These stocks are Ranbaxy Lab, Hindalco Industries, ICICI Bank and HDFC Ltd.

On the laggards, it was Ranbaxy and Hindalco Industries, which were the worst performers. Both the pharma and metal sectors have been suffering on account of volatility in international markets. While Ranbaxy has problems marketing its drugs in the US markets, the metal companies are under pressure on account of international prices. But over the last few weeks there has been a revival of prices in aluminium and copper which is expected to help Indian companies.

Again, 40% of the business of Hindalco is associated with copper which has experienced a fall in demand over the recent past. Both Ranbaxy and Hindalco have fallen by 3.3% and 4% to touch Rs 397 and Rs 162, respectively over the last 1000 point journey of the Sensex. Ranbaxy had lost 29% when the Sensex moved from 8000 to 9000 mark.

Other laggards include ICICI bank and HDFC. With a slight rise in interest rates, both the companies have been affected as investors feel that growth in retail loans will be affected. Both ICICI Bank and HDFC are the market leaders in home loans. While ICICI went down by 1.5%, HDFC saw its stock price fall by 2% to touch Rs 597.80 and Rs 1310.95, respectively.