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Market erases earlier losses, settles flat

The market settled almost flat on Thursday as bargain hunters stepped in, lifting the market towards the close of the session. After remaining deep in the red for the better part of the day, the BSE 30-share Sensitive Index (Sensex) recovered later in the day to settle flat at 3,457.24, losing 0.07 points from its previous close.

The market opened weak today after a fall in the US markets. Stocks sank deeper into the red as selling pressure by operators as well as institutions continued. However, selective buying interest towards the close of the session resulted in the market recovering from the lower levels and ending almost flat.

The BSE Sensex opened in the red with a gap of 1.45 points at 3,455.86. A broad-based selling pressure resulted in the BSE Sensex retreating below the 3,400-mark in intra-day trades to touch a low of 3,395.52. Renewed institutional buying in select heavyweights resulted in the Sensex erasing almost all its earlier losses to touch the day's high of 3,459.51. In the end, the Sensex settled at 3,457.25, losing 0.07 points from its previous close.

Pivotals opened weak, sank deep into the red during the day and recovered towards the close of the session.

Banking major State Bank of India (up 5.63% to Rs 225.90) gained ground on institutional buying interest.

After a subdued opening, Infosys Technologies bounced back from an intra-day low of Rs 3,700 to a high of Rs 3,895 before settling at Rs 3,892, gaining 2.52% over its previous close.

FMCG heavyweight Hindustan Lever (up 0.76% to Rs 185.80) also bounced back from an intra-day low of Rs 183 on renewed buying at the lower levels.

FII buying pushed up Dr Reddy's Laboratories (up 1.65% to Rs 1,466).

Counters like ACC, Castrol, Gujarat Ambuja Cements, ICICI, Bajaj Auto and Hindalco settled in the positive zone.

Meanwhile, Glaxo (down 6.31% to Rs 323.90) lost further ground, but recovered from its new 52-week low of Rs 318.05. There have been concerns about the company's growth after it announced an 8% decline in its five month sales to Rs 346 crore at its AGM earlier this week.

Automobile pivotals Telco (down 3.77% to Rs 74) and M & M (down 3.65% to Rs 111) lost ground on profit booking.

Tech stocks like NIIT (down 1.63% to Rs 438.50) and Satyam Computer (down 0.38% to Rs 208.55) shed a better part of their earlier losses, but settled in the red.

Media major Zee Telefilms recovered from an intra-day low of Rs 115.20 to Rs 124.35 before settling at Rs 123.20, losing 0.28% from its previous close.

Selling was seen in Old Economy PSU pivotals like HPCL (down 2.66% to Rs 1576.40) and MTNL (down 2.07% to Rs 130.20).

Selling was seen in Old Economy pivotals like Tata Steel, Colgate, Reliance Industries, Reliance Petroleum, BSES and Bhel.

Among non-Sensex tech stocks, HCL Technologies (up 6.24% to Rs 385.70) bounced back from an intra-day low of Rs 346 on institutional buying.

Frontline software stocks like Polaris Software, Wipro and Hughes Software also recovered from their intra-day lows to settle in the positive zone.

On the other hand, counters like Tata Elxsi, PSI Data Systems, Fujitsu ICIM, Trigyn Technologies, DSQ Software, Mascot Systems, Aztec Software, Sonata Software, Silverline Technologies, Subex Systems, Aptech, Mastek, SSI, Rolta India, Aftek Infosys, VisualSoft, Digital Equipment, Pentasoft Technologies and Ramco Systems were weak.

Tata Infotech (down 1.33% to Rs 174.05) came off from an intra-day high of Rs 183.90. The company posted impressive FY 2001 results on Wednesday. For the year ended 31 March 2001, the company posted a 117.54% rise in net profit to Rs 26.54 crore (Rs 12.20 crore) on sales of Rs 523.62 crore (Rs 432.31 crore).

Among telecom stocks, Shyam Telecom (down 13.83% to Rs 76) crossed the 8% lower limit of the circuit breaker once again.

Selling was seen on counters like Mobile Telecom, Krone Communications, Tata Telecom, Framatome Connectors, Birla Ericsson, Punjab Communications, Vindhya Telelink, Goldstone Technologies, Finolex Cables and Nelco.

On the other hand, after volatile movements, optical fibre makers Aksh Optifibre (up 3.74% to Rs 143) and Sterlite Optical (up 0.91% to Rs 412.50) settled in the positive zone.

VSNL (up 2.83% to Rs 356.40) gained ground on fresh buying.

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

Selling was seen in non-Sensex pharmaceutical stocks like KDL Biotech, Abbott Laboratories, SmithKline Beecham Pharma, Torrent Pharma, Lupin Laboratories, Glenmark Pharma, Kopran, Panacea Biotech, Ipca Laboratories, Wyeth Lederele, Wockhardt, Cadila Healthcare, Astra-IDL, Knoll Pharma, Duphar Interfran, Suven Pharma, Aurobindo Pharma, Sun Pharma, Pfizer, Parke-Davis and E.Merck.

Among side counters, Tata Infomedia (Rs 143.50) hit the 8% upper limit of the circuit breaker after the company announced that it would consider a bonus issue at its forthcoming board meeting on 14 Jun 2001.

GMM Pfaudler (Rs 101.50) and Motherson Sumi (Rs 100.25) were frozen at the 8% lower limit of the circuit breaker amid poor volumes.

On the other hand, while Kotak Mahindra Finance (down 8.33% to Rs 44) crossed the 8% lower limit of the circuit breaker, Cabot India (Rs 90.65) and C Mac Centum (Rs 20.80) were frozen at the 8% lower limit of the circuit breaker.

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