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BSE, NSE gain over week, see record volumes in trade

Excellent half-yearly performance by petrochemicals major Reliance Industries, followed by a series of better results by ICICI, Ranbaxy and the partial acceptances of the J R Verma Committee recommendations by the Securities and Exchange Board of India on the modified carry-forward system boosted the market sentiments, both on the Bombay Stock Exchange and the National Stock Exchange during the week ended October 17.

However, the impact of all these favourable things was limited, since the foreign institutional investors and domestic institutional investors made limited purchases in anticipation of the Reserve Bank of India's credit policy, scheduled to be announced on October 21, marketmen said.

Meanwhile, encouraged by the SEBI decision on badla trading, the increased participation by speculators in the market, the business volume on BSE as well as on the NSE registered a sharp increase during the week. Total volume on the NSE in the five trading sessions was nearly double that of the Bombay Stock Exchange during the same period.

The BSE Sensex surpassed the important mark of 4100 and closed for the week at 4107.26 points, showing a net gain of 48.89 points over the previous week's close of 4057.37 points.

The broadbased Natex (BSE-100 Index) closed higher by 22.32 points to 1768.48 points over the previous week's close of 1746.16 points. The BSE-200 and Dollex Indices gained by 6.60 and 3.33 points to 395.24 and 181.78 points over the previous week's close of 388.64 and 178.45 points respectively.

The total turnover on the BSE reported during the week was 50.2, billion, registering an increase of Rs 5.1 billion over the previous week's turnover of Rs 45.1 billion.

The total turnover on the National Stock Exchange during the same period was Rs 108.4 billion, twice as much as the country's oldest stock exchange, the BSE.

The BSE opened on a better note on Monday with share prices moving up steadily on the moderate buying support from speculators coupled with company circles buying at the Reliance counter. The BSE Sensex closed at 4066.05, netting a gain of 8.68 points over the previous close.

Reliance announced a net profit of Rs 8.4 billion during the first half year ended September 30, 1997. The company's sales for the first half also grew 57 per cent to Rs 63.3 billion as against Rs 40.4 billion during the previous corresponding period.

Despite the good results, the RIL scrip recorded a sharp decline on the BSE and NSE soon after the announcement of results. The scrip, which was hovering at the higher level of Rs 436 on Monday, fell to Rs 409.75 on the BSE and Rs 399.50 on the NSE on Tuesday.

The BSE Sensex also drifted lower on the same day by 53.60 points to 4012.50 points over Monday's close. The scrip later closed at Rs 403 on Friday, losing Rs 15.75 against the previous week's close of Rs 418.75.

The Industrial Credit and Investment Corporation of India Ltd has posted a profit after tax of Rs 5.72 billion during the half year ended September 1997 as against Rs 3.33 billion in the corresponding period of the previous year, showing a rise of 72 per cent. The ICICI scrip gained a little by Re 0.25 to Rs 99.25 against previous week's close of Rs 99.00.

Ranbaxy Laboratories Ltd has recorded a 24 per cent growth in its net profit at Rs 956 million during first half of 1997-98, up from Rs 773 million last year. The Ranbaxy scrip earned smartly Rs 49.05 to Rs 692.55 over the previous close of Rs 643.50.

In yet another report of result, the Gas Authority of India Ltd has posted a profit after tax of Rs 8.2 billion during the half-year ended September 1997.

Among the others, Hind Lever gained by Rs 77.25 to Rs 1428.25, HDFC up by Rs 29.00 to Rs 3243.75, SBI moved up by Rs 6 to Rs 287, TELCO gained by Rs 5.50 to Rs 345.50 and TISCO drifted higher by Rs 10.25 to Rs 175, ACC closed higher by Rs 137.75 to Rs 1333.25, Bajaj Auto by Rs 31.50 to Rs 619.50, Castrol hardened by Rs 8.25 to Rs 660 and Dr Reddy moved up by Rs 27.75 to Rs 342.00, while scrips which registered decline were Hindalco down by Rs 23.50 to Rs 1000.27, ITC eased by Rs 18.50 to Rs 605.25, L&T drifted lower by Rs 6.00 to Rs 223.75 and MTNL declined by Rs 4 to Rs 273.25 during the week.

Meanwhile, hectic trading was witnessed on the NSE during the same week. The Nifty (NSE-50 Index) gained by 14.25 points to 1177.80 points against the previous week's close of 1163.55 points, similarly the Midcap Index moved up by 27.00 points to 1303.70 points as against the previous close of 1276.70 points.

UNI