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Heavyweight stocks lift Sensex by 58 points

The market staged a further recovery today on institutional bargain hunting.

Sustained buying support in New as well as Old Economy stocks resulted in the Bombay Stock Exchange (BSE) 30-share Sensitive Index (Sensex) gaining 57.84 points to cross the 3,400-mark and close at 3,410.95.

Institutional bargain hunting, which began yesterday afternoon, continued today, ignoring the further fall on tech-heavy Nasdaq on Monday.

Technology stocks rose further as investors gained confidence from better- than- expected earnings posted by Oracle Corp (after market hours in the US).

Earlier on Monday, the Nasdaq composite index closed below 2,000-level for the first time in two months, amid worries that the business outlook for technology companies may not improve soon. Selling in tech stocks resulted in the Nasdaq index shedding 39.80 points to settle at 1,988.63.

Back home, bargain hunting was seen in select Old as well as New Economy stocks. Buying was also seen in stocks belonging to select defensive sectors like fast moving consumer goods (FMCG) and pharmaceuticals.

The BSE Sensex opened in the red with a gap of 5 points at 3,357.11. It sank deeper into the red to touch an intra-day low of 3,339.84 in morning trades on selling pressure in pivotals. However, renewed institutional buying support resulted in the Sensex posting gains steadily for the rest of the trading session. Towards the close, the Sensex touched the day's high of 3,418.99 before settling at 3,410.95, gaining 57.84 points or 1.72% over its previous close.

The National Stock Exchange's S & P CNX Nifty Index also gained 18.35 points to settle at 1,096.65.

Turnover on BSE rose to Rs 1,297.19 crore (Rs 1,092.92 crore on 18 June 2001) from 7.86 crore shares traded. Of the 1,298 issues traded, advances outnumbered declines with 621 gainers and 567 losers. 110 issues remained unchanged.

Pivotal stocks

Cigarette major ITC (up 5.58% to Rs 792.50) was the biggest gainer among Sensex stocks as buying support continued on the counter.

Another FMCG heavyweight, Hindustan Lever, also (up 2% to Rs 201.50) crossed the Rs 200-mark on institutional buying.

Morgan Stanley was said to have been active on the ITC and HLL counters.

Banking major State Bank of India (up 4.47% to Rs 222) also attracted institutional support. DSP Merill Lynch was believed to have been active on the counter. A rumour making the rounds on the SBI counter was that a foreign institutional investor (FII) was supposed to have received the Reserve Bank of India's (RBI) permission to pick up 22 lakh shares of SBI.

Selective buying was seen in pharmaceutical pivotals like Glaxo (up 2.94% to Rs 347.10), Dr Reddy's Laboratories (up 1.77% to Rs 1,451) and Ranbaxy Laboratories (up 1.47% to Rs 446.40).

Tech heavyweight Infosys Technologies (up 3.29% to Rs 3,480) firmed up from an intra-day low of Rs 3,325 on institutional buying, after the company announced on Monday that it would start offering services to a subsidiary of US railway firm Burlington Northern Santa Fe (BNSF) Corporation. Under the business agreement, Infosys will develop software to integrate and manage various information technology systems.

Reliance Industries (up 1.97% to Rs 347.40) recovered on bargain hunting, after a recent fall. The stock lost over 8% in the last three sessions on institutional selling pressure following rising crude oil prices.

Media major Zee Telefilms (up 2.49% to Rs 115.35) also recovered from an intra-day low of Rs 110.05 on sustained institutional support. Close to 47 lakh Zee Telefilms were traded on BSE.

Cement major ACC (up 3.19% to Rs 134.10) posted gains on reports that it would receive Rs 20 crore for selling a 13% stake in glass-making joint venture Floatglass India to its partner Asahi Glass Company of Japan.

Other cement stocks like L & T (up 2.07% to Rs 219.25), Grasim (up 0.77% to Rs 318.20) and Gujarat Ambuja Cements (up 0.35% to Rs 185.65) also gained ground. Canbank Offshore Fund is believed to have been active on the L & T counter.

Tractors and utility vehicles major M & M (up 2.84% to Rs 101.30) recovered to cross the Rs 100-mark on bargain hunting at lower levels. The stock had hit its new 70-month low of Rs 96.10 in intra-day trades on Monday on selling pressure from institutions as well as speculators after poor FY 2001 results.

MTNL (up 2.31% to Rs 132.75), Tata Steel (up 2.02% to Rs 126), HPCL (up 2.02% to Rs 161.50), Castrol (up 0.75% to Rs 227.25) and Hindalco (up 0.28% to Rs 830) also settled in the positive zone.

Meanwhile, Telco (down 3.15% to Rs 66) came off further on selling pressure from institutions as well as speculators following poor FY 2001 results. The company had announced a loss of Rs 500.34 crore for the year ended 31 March 2001.

Software education major NIIT (down 0.68% to Rs 357) slipped on institutional selling pressure.

Colgate (down 0.12% to Rs 161.70) settled almost flat even after impressive FY 2001 results. For the year ended 31 March 2001, the oral care major posted a 20.65% rise in net profit to Rs 62.50 crore (Rs 51.80 crore) on sales of Rs 1,176.90 crore (Rs 1,089.60 crore).

Other pivotals like ICICI (down 2.01% to Rs 70.80), Bhel (down 0.84% to Rs 165.60), Cipla (down 0.39% to Rs 1,085.75) and BSES (down 0.21% to Rs 192) also settled in the negative zone.

Tech stocks

Among non-Sensex tech stocks, Mascot Systems (Rs 129.75) hit 8% upper limit of the circuit breaker on fresh buying support.

Stocks like Aftek Infosys, Fujitsu ICIM, Information Technologies, Mphasis BFL, Ramco Systems, Tata Elxsi, Wipro, Infotech Enterprises, DSQ Software, Digital Equipment, HCL Technologies, Trigyn Technologies and Silverline Technologies also posted gains.

On the other hand, Hughes Software, SSI, Kale Consultants, Sonata Software, Aztec Software, Mastek, Subex Systems, Rolta India and VisualSoft declined on profit-booking.

Telecom stocks

Among telecom stocks, convergence majors HFCL (up 7.72% to Rs 102.50) and Global Tele-Systems (up 1.65% to Rs 172) recovered on bargain hunting, after a recent fall. HFCL topped volumes on BSE with over 53 lakh shares being traded.

Punjab Communications (up 8.23% to Rs 42.10) exceeded 8% upper limit of the circuit breaker. Buying was also seen in other telecom stocks like Surana Telecom, Framatome Connectors, Nelco, Krone Communications, Usha Beltron, Sterlite Industries, Finolex Cables, Tata Telecom, VSNL and Aksh Optifibre.

Sterlite Optical, Goldstone Technologies, Shyam Telecom and Birla Ericsson settled in the red on profit-booking.

Media stocks

Among media stocks, Balaji Telefilms (Rs 186.65) hit 8% upper limit of the circuit breaker. Buying was also seen in other media stocks like G. V. Films, Mukta Arts, Vision Tech, Crest Communications, Padmalaya Telefilms, Pentamedia Graphics, Pritish Nandy Communications and Cinevista Communications.

On the other hand, Saregama India, Adlabs Films, Tips Industries, Jain Studios, TV 18, Mid-Day Multimedia, Sri Adhikari Brothers and Creative Eye settled in the red.

Pharmaceutical stocks

Pharmaceuticals major J. B. Chemicals (Rs 113.20) hit 8% upper limit of the circuit breaker after the company filed a patent application for New Chemical Entities (NCE) with the United States Patent and Trade Mark Office. The NCE have a potent anti-inflammatory action.

Buying was seen in non-Sensex pharmaceutical stocks like Duphar Interfran, SmithKline Beecham Pharma, KDL Biotech, Glenmark Pharma, Wyeth Lederle, Lupin Laboratories, Sun Pharma, Cadila Healthcare, Torrent Pharma, Abbott Laboratories, Fulford, Burroughs Wellcome, German Remedies, Aurobindo Pharma and Parke-Davis.

Hoechst Marion Roussel, FDC, Ipca Laboratories, Novartis, Morepen Laboratories, E.Merck, Suven Pharma, Knoll Pharma, Kopran and Rhone Poulenc settled in the red.

FMCG stocks

Among FMCG stocks, Tata Tea (up 2.10% to Rs 221) ruled steady ahead of the announcement of its FY 2001 results. After market hours, for the year ended 31 March 2001, the tea major posted a 19.59% drop in the net profit to Rs 100.21 crore (Rs 124.63 crore) on sales of Rs 891.16 crore (Rs 974.49 crore).

Buying was also seen in other FMCG stocks like Shaw Wallace, United Breweries, VST Industries, SmithKline Beecham Consumer Healthcare, Gillette India, Cadbury India, Nirma, Kodak India and Britannia Industries.

Stocks like Archies Greetings, Bausch & Lomb, Reckitt Benckiser, Bata India, Dabur India and P & G settled in the red.

Banking and Finance stocks

Banking and finance sector stocks like Corporation Bank, HDFC Bank, Vysya Bank, ICICI Bank, Bank of Baroda, HDFC, IndusInd Bank, J & K Bank and Centurion Bank advanced further.

Selling was seen in stocks like Bank of Rajasthan, South Indian Bank, Tata Finance, IDBI Bank, UTI Bank, Bank of India, Federal Bank, Global Trust Bank and LIC Housing Finance.

Side counters

Among side counters, TVS Suzuki (up 8.70% to Rs 92.50) crossed 8% upper limit of the circuit breaker.

BASF India (up 5.15% to Rs 71.45) gained ground following impressive FY 2001 results. For the year ended 31 March 2001, the chemicals major posted a net profit of Rs 22.43 crore (Rs 19.98 crore) on sales of Rs 376.13 crore (Rs 337.04 crore).

ONGC (up 5.61% to Rs 174.95) advanced further following the firming up of international crude prices.

Modi Rubber (up 6.29% to Rs 74.30) ruled firm following the reports that Purnendu Chatterjee, who holds around 13-14% stake in the company, may consider selling the same to the financial institutions. If the financial institutions, which already own 44% stake in the company, manage to acquire controlling stake, they could take over the management of the company. A professional management would be beneficial to the company, feel players.

Bhushan Steel (Rs 18.95) and Hikal (Rs 69.25) hit 8% upper limit of the circuit breaker.

Buying was also seen in Centak Chemicals, Kotak Mahindra Finance, Mirc Electronics, Syngenta India, Gati Corporation, Thermax, Bayer India, Esab India, Essel Packaging, Bharat Forge, Crisil, Bharat Electronics, Exide Industries, Gujarat Gas and Wartsila India.

On the other hand, Shree Rama Multitech, Bayer Diagnostics, Coates of India, Chennai Petroleum, Philips India, Atlas Copco, Saw Pipes, Birla 3M, Thomas Cook, Apollo Hospital, Ucal Fuel, Hinduja TMT, Titan Industries and Amara Raja Batteries slipped on profit- booking.

Source: www.capitalmarket.com

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