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Market@June 4: Day's report

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

Selling in heavyweight stocks resulted in the BSE 30-share Sensitive Index (Sensex) shedding another 59 points to settle at 3,498.38, slipping for the fourth time in a row.

The undertone remained bearish after two global rating agencies -- Standard & Poor's (S&P) and Moody's -- vindicated concerns expressed by Fitch, another such rating agency, on India's fiscal policy and deteriorating foreign investment climate.

On Friday, the BSE Sensex shed more than 2% after Fitch lowered India's sovereign rating late on Thursday.

The market slipped after a volatile start. The BSE Sensex opened in the positive zone with a gap of 18 points at 3,676. It touched the day's high of 3,590.56 in early trades, but lost ground as selling pressure emerged at higher levels. This pulled the Sensex below the 3,500-mark to touch a low of 3,490.84. In the end, the Sensex settled at 3,498.38, losing 59.26 points or 1.67% from its Friday's close.

The National Stock Exchange's S & P CNX Nifty Index also shed 20.85 points to 1,127.20.

Turnover on BSE dropped to Rs 1,122.04 crore (Rs 1,405.74 crore on 1 June 2001) from 6.80 crore shares traded. Of the 1,295 issues traded, losses outnumbered advances with 736 losers and 476 gainers. 83 issues remained unchanged.

Pivotal stocks

Selling pressure was seen in New as well as Old Economy stocks. Profit-booking was conspicuous in heavyweight pivotals.

Pharma MNC Glaxo (down 5.59% to Rs 363) came off sharply in early afternoon trades on selling pressure. The stock had opened steady and touched a high of Rs 388 in early trades.

Tech pivotals lost further ground on sustained selling pressure from institutions as well as speculators.

Infosys Technologies declined from a high of Rs 3,790 to Rs 3,601 before settling at 3,620, losing 3.39% from its previous close.

Satyam Computer also came off from an intra-day high of Rs 214.95 to Rs 204.15 before settling at Rs 205.20, losing 2.86% from its previous close. Over 57 lakh Satyam shares were traded on BSE.

NIIT retreated from a high of Rs 480 to Rs 452.25 before settling at Rs 454, losing 2.79% from its previous close

Media major Zee Telefilms (down 2.46% to Rs 126.90) slipped sharply from an intra-day high of Rs 133 after a steady start.

Other heavyweights like Hindustan Lever (down 2.70% to Rs 187.45), Reliance Petroleum (down 2.88% to Rs 50.60), Reliance Industries (down 1.34% to Rs 374.95), ITC (down 1.12% to Rs 761) and State Bank of India (down 0.37% to Rs 215) were largely responsible for the fall in the Sensex.

Automobile stocks like M & M (down 3.24% to Rs 116.45), Telco (down 0.44% to Rs 79.20) and Bajaj Auto (down 2.38% to Rs 254.05) slipped on profit-booking.

Tata Steel (down 1.92% to Rs 138) came off after touching an intra-day high of Rs 144.75. The company posted impressive results on Friday. For the year ended 31 March 2001, the steel major posted a net profit of Rs 553.4 crore (Rs 422.5 crore) on sales of Rs 7,759.40 crore (Rs 6,890.8 crore).

Selling was seen in other pivotals like BSES, L&T, Bhel, ICICI, HPCL and Nestle.

On the other hand, Dr Reddy's Laboratories (down 2.78% to Rs 1,479) ruled steady on good buying support. While the company posted impressive Q4 results last week, it also 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.

Cement major ACC (up 1.95% to Rs 141.25) also gained ground on fresh buying support.

Counters like Cipla, MTNL, Hindalco, Colgate and Castrol settled in the positive zone.

Tech stocks

Among non-Sensex tech stocks, SSI (down 15.25% to Rs 418.70) and Citicorp Securities (down 8.11% to Rs 164.90) crossed 8% lower limit of the circuit breaker on selling pressure.

Infotech Enterprises (Rs 99.45) and Blue Star Infotech (Rs 35.95) were frozen at 8% lower limit.

Selling was also seen in other tech stocks like R. S. Software, Mascot Systems, Aztec Software, Kale Consultants, Wipro, Sierra Optima, Polaris Software, HCL Technologies, Hughes Software, Aftek Infosys, Digital Equipment, Trigyn Technologies, CMC, Mphasis BFL, Mascon Global, Sonata Software, DSQ Software, Ramco Systems, Silverline Technologies, Tata Infotech, Rolta India and VisualSoft.

Subex Systems, HCL Infosystems, Mastek and Nucleus Software posted gains.

Telecom stocks

Among telecom stocks, optical fibre makers Aksh Optifibre (down 5.04% to Rs 144) and Sterlite Optical (down 3.47% to Rs 412.60) declined on profit-booking.

Convergence major Global Tele-Systems (down 3.01% to Rs 211.30) and HFCL (down 3.53% to Rs 146.40) sank further on heavy selling pressure.

Shyam Telecom (down 12.47% to Rs 99) crossed 8% lower limit of the circuit breaker.

Selling was also seen in other telecom stocks like Usha Beltron, Krone Communications, Vindhya Telelink, Tata Telecom, Birla Ericsson, Goldstone Technologies, Punjab Communications, Framatome Connectors, VSNL and Finolex Cables.

On the other hand, Mobile Telecom (Rs 31.15) was frozen at 8% upper limit of the circuit breaker.

Media stocks

Among media stocks, Crest Communications (down 12.78% to Rs 58) and Jain Studios (down 8.62% to Rs 57.75) crossed 8% lower limit of the circuit breaker.

Selling was seen in Vision Tech, Pritish Nandy Communications, Pentamedia Graphics, Balaji Telefilms, TV 18, Cinevista Communications, Padmalaya Telefilms, Sri Adhikari Brothers, Adlabs Films, Creative Eye, Tips Industries, Mid-day Multimedia and Mukta Arts.

Pharmaceutical stocks

Among pharma stocks, Torrent Pharma (down 13.43% to Rs 116) crossed 8% lower limit of the circuit breaker on profit-booking.

Selling was also seen on counters like Aurobindo Pharma, Alembic, Fulford, Neuland Laboratories, Wyeth Lederle, Pfizer, Panacea Biotech, SmithKline Beecham Pharma, Shasun Chemicals, E.Merck, Hoechst Marion Roussel, Burroughs Wellcome, Lupin Laboratories, Ipca Laboratories, Abbott Laboratories, Novartis, Cadila Healthcare, Astra-IDL, Parke-Davis, German Remedies and Nicholas Piramal.

Sun Pharma (up 1.42% to Rs 599.15) gained ground after the company received an approval from the U.S. Food and Drugs Administration (USFDA) for manufacturing an ingredient to make drugs that treat peripheral vascular disease.

Selective buying was seen in Suven Pharma and Rhone Poulenc.

FMCG stocks

Among the fast moving consumer goods (FMCG) stocks, VST Industries (Rs 135.80) was frozen at 8% upper limit of the circuit breaker after Brightstar Investments, the investment company of G. S. Damani, raised its open offer price to Rs 151 per share for a 30% stake in the company compared to the earlier offer for 20%. Russell Credit, ITC's subsidiary, earlier, had raised its open offer price to Rs 125 per share.

Buying was also seen in other FMCG stocks like Tata Tea, Cadbury India, SmithKline Beecham Consumer Healthcare and P&G.

Selling was seen in Bausch & Lomb, Gillette India, McDowell, Kodak India, Reckitt Benckiser, Nirma, Dabur India, Britannia Industries and Bata India.

Banking stocks

Among banking stocks, Oriental Bank of Commerce (down 8.26% to Rs 37.75) exceeded 8% lower limit of the circuit breaker on poor Q4 2001 results. For the quarter ended 31 March 2001, the banking major posted a net profit of Rs 8.39 crore (NP Rs 58.61 crore) on an income of Rs 789.58 crore (Rs 699.87 crore).

Selling was also seen in other banking stocks like UTI Bank, Bank of Baroda, Bank of Rajasthan, Corporation Bank, Federal Bank, Global Trust Bank, ICICI Bank and Bank of Punjab.

On the other hand, Vysya Bank, United Western Bank, Nedungadi Bank, HDFC Bank, South Indian Bank and Centurion Bank ruled firm.

Side counters

Among side counters, Shree Rama Multitech (Rs 41.95), Aventis Cropscience (Rs 116.70), Khandwala Securities (Rs 52.95) and Boston Education (Rs 62.65) were frozen at 8% upper limit of the circuit breaker.

Tata Chemicals (up 3.12% to Rs 46.25) was steady after the company posted impressive results. For the year ended 31 March 2001, the chemicals major posted a net profit of Rs 164.95 crore (Rs 117.29 crore) on sales of Rs 1,502.14 crore (Rs 1,541.46 crore).

Buying was also seen on other side counters like Surat Electricity, Thomas Cook, ITW Signode, Apollo Tyres, BPCL, Foseco India, Apollo Hospitals, HDFC Bank, Raymond, Madura Coats and Otis Elevator.

On the other hand, Amara Raja Batteries (down 9.44% to Rs 106) and Oriental Bank of Commerce (down 8.26% to Rs 37.75) crossed 8% lower limit of the circuit breaker.

Saw Pipes (Rs 152.20) and Clariant (Rs 82.70) hit 8% lower limit.

Bharat Forge (down 4.71% to Rs 65.75) was subdued on selling pressure after the company posted disappointing FY 2001 results on Saturday. For the year ended 31 March 2001, the company posted a net profit of Rs 32.64 crore (Rs 62.62 crore) on sales of Rs 487.75 crore (Rs 524.03 crore).

Indian Hotels (down 3.19% to Rs 229) came off from an intra-day high of Rs 243 on profit-booking after the company posted its FY 2001 results. For the year ended 31 March 2001, the company posted a net profit of Rs 116.79 crore (Rs 113.23 crore) on sales of Rs 716.34 crore (Rs 630.59 crore).

Selling was also seen in Amtek India, Mirza Tanners, Gati Corporation, Shipping Corporation of India, Max India, Adani Exports, Videocon International, Jindal Steel, BPL, Tata Power, Tata Honeywell, Syngenta India, Hinduja Finance, Sesa Goa, Voltas, IPCL, Himatsingka Seide, Esab India, Philips India, Ashok Leyland, Wartsila India and Titan Industries.

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