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Selling in old economy stocks pulls down Sensex by 11 points

The market lost ground on Tuesday as investors booked profit in old economy stocks at higher levels. Thanks to the recovery in new economy stocks, the BSE 30-share sensitive index settled with only a small loss of 11 points at 3,497.34.

The market saw a reversal in trend today. While old economy stocks witnessed profit booking after recent gains, new economy stocks recovered on bargain hunting.

Following a further fall in the tech-heavy Nasdaq on Monday, the BSE Sensex opened in the red with a gap of 5 points at 3,504.25. After a volatile opening, the Sensex recovered and touched the day's high of 3,504.24 in early trades. However, profit booking in old economy stocks pulled down the Sensex to the day's low of 3,484.08.

A recovery in new economy stocks towards the close of the session resulted in the Sensex closing with a modest loss of 10.93 points at 3,498.39.

The NSE S & P CNX Nifty Index shed 3.40 points to end at 1,127.70.

Old economy pivotals lost ground on profit booking.

Aluminium major Hindalco (down 6.36% to Rs 818.05) lost ground on profit booking after recent gains.

Financial sector pivotals State Bank of India (down 3.83% to Rs 214.70) and ICICI (down 2.74% to Rs 76,45) lost ground on profit booking.

PSU pivotals like MTNL (down 3.11% to Rs 127.90), HPCL (down 0.90% to Rs 160) and Bhel (down 1.44% to Rs 178.55) settled in the red on selling pressure.

Tech pivotals Satyam Computer (down 0.71% to Rs 209.35) and NIIT (down 1.99% to Rs 428.90) settled in the red, but recovered from their lower levels.

Automobile pivotals like M & M (down 2.03% to Rs 110.80) and Bajaj Auto (down 1.97% to Rs 280.75) lost ground.

Selling was seen on counters like BSES, Colgate, Castrol, L & T and Tata Steel.

On the other hand, cement pivotals Gujarat Ambuja Cements (up 2.33% to Rs 186.40) and Grasim (up 0.64% to Rs 335.60) managed to buck the trend on selective buying.

Pharmaceutical pivotals like Glaxo (up 1.40% to Rs 334) and Dr Reddy's Laboratories (up 2.04% to Rs 1,510.90) also settled in the positive zone.

Infosys Technologies bounced back from an intra-day low of Rs 3,741.30 to Rs 3,845 before settling at Rs 3,834.90, gaining 0.72% over its previous close.

Heavyweights Hindustan Lever (up 0.63% to Rs 191.55) and Reliance Petroleum (up 1.38% to Rs 51.50) also settled in the positive zone.

Cigarettes major ITC (up 0.27% to Rs 751.90) settled in the positive zone.

Among non-Sensex tech stocks, Fujitsu ICIM (Rs 89.70) hit the 16% upper limit of the circuit breaker on fresh buying.

R S Software (up 11.95% to Rs 69.80), Onward Technologies (up 10.26% to Rs 43) and Sierra Optima (up 9.08% to Rs 72.05) crossed the 8% upper limit of the circuit breaker.

Counters like Orient Information, Subex Systems, Trigyn Technologies, Infotech Enterprises, Sonata Software, Pentasoft Technologies, Geometric Software, Digital Equipment, Wipro, Aztec Software, Kale Consultants, Citicorp Securities, PSI Data Systems and CMC settled in the positive zone.

Aptech (down 3.44% to Rs 106.70) lost further ground on profit booking after a sharp spurt on Friday, when the company announced restructuring of its operations. As per the restructuring exercise, the company will demerge its IT education business into a separate subsidiary and Hexaware Technologies, an unlisted company, will be merged with the company.

Selling was seen in software stocks like VisualSoft, Mphasis BFL, Hughes Software, Polaris Software, Mastek, Information Technologies, SSI, HCL Technologies, Mascon Global, Ramco Systems, Mascot Systems, Silverline Technologies, Tata Infotech, Aftek Infosys, DSQ Software and Rolta India.

Among telecom stocks, Tata Telecom (up 8.73% to Rs 68.50) crossed the 8% upper limit of the circuit breaker. Aksh Optifibre (Rs 150.15) was frozen at the 8% upper limit of the circuit breaker.

Buying was seen in telecom-related stocks like Sterlite Optical, Punjab Communications, Usha Beltron, Vindhya Telelink, Krone Communications, Birla Ericsson and Framatome Connectors.

Counters like Mobile Telecom, Shyam Telecom, Nelco, Surana Telecom, VSNL, Goldstone Technologies, Finolex Cables, Sterlite Industries and ITI settled in the red.

Among media stocks, Jain Studios (up 8.9% to Rs 66.05) crossed the 8% upper limit of the circuit breaker. Balaji Telefilms (Rs 171.50), Cinevista Communications (Rs 57.45), Tips Industries (Rs 104.90), Mukta Arts (Rs 160.35), Pritish Nandy Communications (Rs 42.15) and Creative Eye (Rs 20.65) hit the 8% upper limit of the circuit breaker.

Buying was seen in media stocks like TV 18, Padmalaya Telefilms, Vision Techno, Crest Communications, Sri Adhikari Brothers and Pentamedia Graphics.

Among the side counters, Hinduja Finance (up 10.68% to Rs 86.50) crossed the 8% upper limit of the circuit breaker after the Registrar of Companies (RoC) approved a change in its name to Hinduja TMT with effect from 8 Jun 2001.

Vikas WSP (up 9.76% to Rs 22.50) crossed the 8% upper limit of the circuit breaker.

Foseco India (Rs 77.70) hit the 8% upper limit of the circuit breaker after Sebi's takeover panel directed BP Amoco, Foseco's new parent, to make an open offer to its shareholders within 45 days. Foseco India, a Castrol group company, came under BP Amoco after the latter took over Burmah Castrol worldwide.

Saw Pipes (Rs 131.80), Apollo Tyres (Rs 68.75) and Khandwala Securities (Rs 63.05) hit the 8% upper limit of the circuit breaker.

On the other hand, Morepen Hotels (Rs 79.65) and Mirza Tanners (Rs 32.35) hit the 8% lower limit of the circuit breaker.

Cummins India (down 5.31% to Rs 57.90) lost ground after the company announced FY 2001 results on Monday after market hours. For the year ended March 2001, the engines major posted a 16.74% rise in net profit to Rs 108.93 crore (Rs 93.30 crore) on sales of Rs 882.93 crore (Rs 846.89 crore).

Source: www.capitalmarket.com

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