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Sensex sheds 24 points on unwinding of positions

The market declined today, the last day of settlement on the Bombay Stock Exchange(BSE), on selling pressure in New as well as Old Economy stocks.

The BSE 30-share Sensitive Index (Sensex) shed 23.88 points to 3,381.76.

While Old Economy stocks continued to decline on unwinding of outstanding positions ahead of the 2 July 2001 deadline banning carry-forward trading, New Economy stocks slipped despite a recovery on tech-heavy Nasdaq on Thursday. Select pharmaceutical stocks recorded modest gains on defensive buying.

The BSE Sensex opened in the red with a gap of 3.5 points at 3,402.14. After touching a high of 3,409.76 in opening trades, the Sensex retreated into the red on selling pressure and remained there for the rest of the trading session. It touched an intra-day low of 3,361.79 before recovering slightly towards the close to settle at 3,381.76, losing 23.88 points or 0.70% from its previous close.

The National Stock Exchange's S & P CNX Nifty Index also shed 7.55 points to 1,087.65.

Turnover on BSE remained more or less unchanged at Rs 998.49 crore (Rs 994.43 crore on 21 June 2001) from 7.01 crore shares traded. Of the 1,552 issues traded, declines outnumbered advances with 974 losers and 410 gainers. 168 issues remained unchanged.

Pivotal stocks

Selling was seen in Old as well as New Economy stocks.

Cement pivotals like Grasim (down 4.55% to Rs 300.25), L & T (down 4.21% to Rs 205.70) and ACC (down 3.88% to Rs 130.20) lost ground on reports that retail cement prices have fallen by as much as Rs 15-25 per bag following the onset of monsoon. The demand for cement generally witnesses a drop during the monsoon as construction activity slackens.

M & M touched a new 70-month low of Rs 91.10 before settling at Rs 91.60 on account of selling pressure.

Commercial vehicles major Telco (down 5.29% to Rs 60.85) slipped on profit-booking. According to the figures released by the Society of Indian Automobile Manufacturers (SIAM), commercial vehicle sales of the company plunged 40.9% in May 2001.

Bajaj Auto (down 1.46% to Rs 259.55) also declined on unwinding of outstanding positions.

State Bank of India (down 0.88% to Rs 225.50) was slightly subdued after the company posted its FY 2001 results during market hours on Thursday. For the year ended 31 March 2001, the banking giant posted a net profit of Rs 1,604.25 crore (Rs 2,051.55 crore) on an income of Rs 30,021.19 crore (Rs 25,770.25 crore). The bank has provided Rs 853.20 crore for voluntary retirement scheme-related expenses.

Selling was seen in other Old Economy stocks like MTNL (down 2.99% to Rs 131.30), HPCL (down 2.52% to Rs 160.60), Tata Steel (down 1.91% to Rs 117.90), Reliance Petroleum (down 1.75% to Rs 47.65), Castrol (down 1.57% to Rs 222.55), BSES (down 1.47% to Rs 194.40) and Hindalco (down 1.26% to Rs 819).

Among tech pivotals, Satyam Computer came off sharply from Rs 187.40 to a low of Rs 172.35 before settling at Rs 177.25, losing 4.29% from its previous close. Satyam topped volumes on BSE with over 52.74 lakh shares being traded.

NIIT slipped from an intra-day high of Rs 363.40 to Rs 347.50 before recovering once again to settle at 355.05, yet losing 1.29% from its previous close.

Media major Zee Telefilms also came off from a high of Rs 107.75 to Rs 105 before settling at Rs 105.40, losing 2.09% from its previous close. Over 37 lakh Zee shares were traded on BSE.

Meanwhile, pharmaceutical pivotals like Dr Reddy's Laboratories (up 2.46% to Rs 1,502), Ranbaxy Laboratories (up 1.09% to Rs 459.50) and Cipla (up 0.13% to Rs 1,088.05) gained ground on defensive buying.

Fast moving consumer goods (FMCG) pivotals such as Nestle (up 1.11% to Rs 545) and ITC (up 1.03% to Rs 792.50) posted gains.

Among the others, Infosys Technologies bounced back from a low of Rs 3,372 to Rs 3,469 on institutional buying before settling at Rs 3,439.75, gaining 0.99% over its previous close.

Petrochemicals major Reliance Industries also moved up from a low of Rs 336.20 to Rs 343.75 before settling at Rs 343.40, gaining 0.62% over its previous close.

Tech stocks

Among non-Sensex tech stocks, Trigyn Technologies (down 12.03% to Rs 41.30), DSQ Software (down 11.83% to Rs 54.40), HCL Technologies (down 10.25% to Rs 313) and Infotech Enterprises (down 9.32% to Rs 95.30) crossed 8% lower limit of the circuit breaker.

Selling was also seen in stocks like HCL Infosystems, Sierra Optima, Fujitsu ICIM, SSI, Silverline Technologies, Geometric Software, VisualSoft, Kale Consultants, Sonata Software, CMC, Mastek, Hughes Software, Tata Infotech, Pentasoft Technologies, Polaris Software, Wipro, Subex Systems, Aztec Software and Mascot Systems.

Information Technologies, Aptech, PSI Data Systems, Mphasis BFL, Aftek Infosys and Digital Equipment settled in the positive zone.

Telecom stocks

HFCL (down 14.60% to Rs 76.35) crossed 8% lower limit of the circuit breaker following reports that the TV business of Nine Broadcasting India, a joint venture between HFCL and Australian media baron Kerry Packer, has been shut down.

Global Tele-Systems (down 13.04% to Rs 129.70) declined further on unwinding of long positions.

Both HFCL and Global Tele-Systems do not figure in the list of 31 stocks approved by the Securities and Exchange Board of India (Sebi) for options trading.

Goldstone Technologies (down 8.05% to Rs 25.70) and Shyam Telecom (down 8.17% to Rs 54) crossed 8% lower limit of the circuit breaker.

Selling was seen in other telecom stocks like Framatome Connectors, Krone Communications, Mobile Telecom, Aksh Optifibre, Birla Ericsson, VSNL, Punjab Communications, Surana Telecom, Finolex Cables and Vindhya Telelinks.

On the other hand, Sterlite Optical (up 2.19% to Rs 355.10) ruled steady throughout the session on selective institutional buying after the scrip was included in the list of stocks for options trading.

Tata Telecom (up 2.03% to Rs 73.05) and ITI (up 1.19% to Rs 12.80) also settled in the positive zone.

Media stocks

Among media stocks, Saregama India (down 9.82% to Rs 146.55) and Jain Studios (down 8.88% to Rs 43.60) crossed 8% lower limit of the circuit breaker. Adlabs Films (Rs 60.50) hit 8% lower limit.

Selling was seen in stocks like Pentamedia Graphics, Crest Communications, TV 18, Sri Adhikari Brothers, Cinevista Communications, Tips Industries, Creative Eye, Pritish Nandy Communications, Padmalaya Telefilms and Mid-Day Multimedia.

On the other hand, Balaji Telefilms (up 3.73% to Rs 192.05) and Mukta Arts (up 2.15% to Rs 152) bounced back towards the close of the session and settled in the positive zone. Both these media majors have been attracting renewed buying support from institutions as well as operators of late.

Pharmaceutical stocks

Non-Sensex pharmaceutical stocks like Glenmark Pharma, Abbott Laboratories, Aurobindo Pharma, J. B. Chemicals, Torrent Pharma, Panacea Biotech, Lupin Laboratories, Burroughs Wellcome, Fulford, Parke Davis, SmithKline Beecham Pharma, Cadila Healthcare, Alembic, Kopran, German Remedies, Novartis, Ipca Laboratories, Wockhardt, Hoechst Marion Roussel, E Merck, Morepen Laboratories, Pfizer and Rhone Poulenc declined.

On the other hand, Duphar Pharma, Sun Pharma, FDC and Knoll Pharma settled in the positive zone.

FMCG stocks

Among FMCG stocks, Tata Tea (Rs 189.35) hit 8% lower limit of the circuit breaker on profit-booking. Earlier this week, the tea major posted a 20% drop in net profit for FY 2001.

Archies Greetings (down 8.50% to Rs 56.50) crossed 8% lower limit of the circuit breaker following poor FY 2001 results. For the year ended 31 March 2001, the greeting cards and gift articles major posted a 31.79% drop in net profit to Rs 9.14 crore (Rs 13.40 crore) on sales of Rs 68.80 crore (Rs 71.15 crore). The decline in the sales and net profit was attributed to the popularity of e-cards and the earthquake in Gujarat earlier this year.

Selling was also seen in stocks like Gillette India, Bausch & Lomb, Dabur India, Bata India, Kodak India, Reckitt Benckiser, Cadbury India, Procter & Gamble and Nirma.

VST Industries, Britannia Industries and United Breweries settled in the positive zone.

Side counters

Among the side counters, Mirc Electronics (Rs 232.15) hit 16% lower limit of the circuit breaker on institutional selling pressure.

Adani Exports (down 10.64% to Rs 338.50), Bharat Forge (down 9.79% to Rs 52) and Voltas (down 9.53% to Rs 32.75) crossed 8% lower limit.

Saw Pipes (Rs 101.05), Syngenta India (Rs 48.20), Thermax (Rs 48.85) and Sesa Goa (Rs 48.85) hit 8% lower limit.

Selling was also seen on counters like DSQ Biotech, BPL, Hinduja TMT, Elbee Services, Century, ONGC, Philips India, Jaiprakash Industries, Cummins India, Titan Industries, Atlas Copco, Shree Rama Multitech, Max India, Bombay Dyeing, Jindal Steel, Esab India, Tata Power, ABB, Amara Raja Batteries, Siemens, Vikas WSP, Tata Infomedia and Wartsila India.

On the other hand, Bayer India (Rs 655.50) hit 8% upper limit of the circuit breaker for the fifth time in a row on rumours that Bayer AG of Germany will make an open offer to the shareholders of the company in order to raise its stake.

D-Link India (Rs 241.40) also hit 8% upper limit.

Thomas Cook India (TCIL) (up 1.98% to Rs 268) gained ground on hopes that an open offer may be in the offing after the company's new parent Condor and Neckermann Touristic's resolution for change in indirect control of the company was defeated in the extra ordinary general meeting of shareholders held on 8 June 2001. Players feel that now the German company may have to make an open offer to acquire a controlling stake in TCIL.

Modi Rubber (up 1.33% to Rs 76.35) posted gains after the Modi consortium raised the open offer price to Rs 90 per share from its earlier Rs 81.50 per share.

Selective buying was seen in Alfa Laval, Monsanto India, Ashok Leyland, Colour Chem, Otis Elevators, Centak Chemicals, Moser Baer, Bharat Electronics, Hindustan Inks and Carrier Aircon.

Source: www.capitalmarket.com

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