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Market@June 1: Day's report

The market lost ground for the third session in a row as selling pressure continued in New as well as Old Economy stocks after the rating agency Fitch downgraded India'a rating to negative from stable.

An almost across the board selling pressure in stocks resulted in the BSE 30-share Sensitive Index (Sensex) shedding another 73.18 points to settle below the 3,600-mark at 3,558.73.

Stocks opened firm today following overnight gains on Wall Street, but soon slipped into the red in reaction to the ratings outlook downgrade by global rating agency Fitch. While operators booked profit, selling pressure was seen coming from domestic and foreign institutions.

While selling was seen across the board, Old Economy stocks were the major losers today.

Selling pressure was conspicuous in heavyweight pivotals like Reliance Industries (down 4.57% to Rs 380), ITC (down 3.15% to Rs 770), Hindustan Lever (down 2.60% to Rs 192.60), State Bank of India (down 2.62% to Rs 215.65) and Reliance Petroleum (down 2.43% to Rs 52.10).

Tech stocks like NIIT (down 1.89% to Rs 468.90), Satyam Computer (down 2.71% to Rs 211.90) and Infosys Technologies (down 0.64% to Rs 3,750.15) settled in the red after a steady opening.

Zee Telefilms (down 1.99% to Rs 130.35) came off from an intra-day high of Rs 136.60 on profit booking at the higher levels. The company posted its results on Thursday after market hours. For the quarter ended 31 March 2001, the media major posted a net profit of Rs 39.82 crore (Rs 22.34 crore) on sales of Rs 299.06 crore (Rs 210.62 crore). For FY 2001 ended 31 March, the company posted a net profit of Rs 183.38 crore (Rs 160.80 crore) on sales of Rs 1,015.83 crore (Rs 786.90 crore).

Gujrat Ambuja Cements (down 4.80% to Rs 175.65) and BSES (down 4.57% to Rs 203.60) were the major losers among Sensex stocks.

Pharmaceutical pivotals like Ranbaxy Laboratories (down 2.47% to Rs 480.30) and Glaxo (down 2.08% to Rs 384.10) lost ground.

Tata Steel (down 1.02% to Rs 140.15) was subdued despite impressive FY 2001 results. For the year ended 31 March 2001, the steel major posted a net profit of Rs 839.28 crore (Rs 445.10 crore) on sales of Rs 6,893.5 crore (Rs 6,146.47 crore).

PSU electrical equipment major Bhel (down 0.98% to Rs 186.30) also came off after the company bagged the much-awaited NTPC order worth Rs 2,800 crore.

Meanwhile Dr Reddy's Laboratories (up 2.20% to Rs 1,437.25) gained ground after the pharma major said late on Thursday that it expects to win approval for its generic version of Eli Lilly's anti-depressant Prozac after a court ruled in favour of a competing generic producer. Its NYSE-listed ADR jumped 13.6% on Thursday.

Selling pressure was seen in non-Sensex tech stocks despite a recovery in the US markets on Thursday.

Counters like Information Technologies, Mascot Systems, Subex Systems, PSI Data Systems, Infotech Enterprises, Trigyn Technologies, Sierra Optima, Kale Consultants, DSQ Software, Mastek, Aptech, Hughes Software, Aztec Software, Sonata Software, Digital Equipment, R S Software, CMC, HCL Technologies, Rolta India, Ramco Systems, Shonkh Technologies, Silverline Technologies, Aftek Infosys, VisualSoft and Wipro.

Meanwhile, Tata Infotech (up 2.77% to Rs 176) remained steady on renewed talks that the company will merge with Tata Consultancy Services. The company has denied rumours of its merger with TCS twice earlier.

Nucleus Software, Mphasis BFL and Pentasoft Technologies settled in the positive zone.

Among telecom stocks, optical fibre makers Aksh Optifibre (down 1.63% to Rs 154) and Sterlite Optical (down 2.22% to Rs 430.90) lost ground on profit booking after recent gains.

Convergence majors Global Tele-Systems (down 4.12% to Rs 217.80) and HFCL (down 1.40% to Rs 151.65) settled in the red on profit booking.

Selling pressure was seen in telecom-related stocks like Nelco, Birla Ericsson, Shyam Telecom, Punjab Communications, Krone Communications, ITI, Mobile Telecom, Vindhya Telelink, Surana Telecom, Sterlite Industries, Tata Telecom, Usha Beltron, Finolex Cables and Framatome Connectors.

VSNL (up 3.51% to Rs 359.90) gained ground on fresh buying.

Selling was seen in media stocks like Crest Communications, Creative Eye, Pritish Nandy Communications, Tips Industries, Balaji Telefilms, Jain Studios, TV 18, Adlabs Films, Sri Adhikari Brothers, Mid-Day Multimedia, Mukta Arts, Cinevista Communications and Padmalaya Telefilms.

On the other hand, Pentamedia Graphics crossed the 8% upper limit of the circuit breaker in intra-day trades to touch a high of Rs 106.10 before coming off to settle at Rs 98, gaining 7.10% over its previous close. Over 76 lakh Pentamedia shares were traded on BSE.

Non-Sensex pharmaceutical stocks Glenmark Pharma, Cadila Healthcare, Kopran, Burroughs Wellcome, Rhone Poulenc, Abbott Laboratories, Torrent Pharma, Suven Pharma, Parke-Davis, Novartis, Ipca Laboratories, SmithKline Beecham Pharma, Duphar Interfran, Panacea Biotech, Fulford, Astra-IDL, Sun Pharma, Knoll Pharma, Hoechst Marion Roussel, German Remedies, E.Merck and Morepen Laboratories lost ground.

Among the side counters, Foseco India (Rs 73.40) and Khandwala Securities (Rs 49.05) were frozen at the 8% upper limit of the circuit breaker.

Buying was seen on side counters like Shriram Honda, Mirc Electronics, Videocon International, Hindustan Inks, Clariant, Wartsila India, IPCL, Shree Rama Multitech, Gujarat Gas, D-Link India and Titan Industries.

On the other hand, Crisil (down 7.88% to Rs 127.50) lost ground after the company clarified that there will be no change in Standard and Poor's working relationship or its shareholding pattern with it at present. The stock rose earlier this week on rumours that S & P might raise its stake in the company. Meanwhile, the company has also denied rumours of a buy-back.

Selling was seen on other counters like Gati Corporation, Modi Rubber, Bombay Dyeing, TVS Suzuki, Hikal, Aventis Cropscience, ITW Signode, Tata Infomedia, Max India, Thermax, Hinduja Finance, Esab India, Hero Honda, ITC Bhadrachalam, United Phosphorus, Atlas Copco, Essel Packaging, Ashok Leyland, Ingersoll Rand and Reliance Capital.

Source: www.capitalmarket.com

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