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Sensex sheds another 38 points on continued selling

The market lost further ground on Tuesday as selling pressure continued on New as well as Old Economy stocks. Select heavyweight stocks pulled down the BSE 30-share Sensitive Index by 38.34 points to close at 3,460.64, its fifth loss in as many sessions.

While institutional investors are informed to be booking profit after the recent gains, the market lost further ground on speculative unwinding as Sebi's deadline banning carry-forward approaches.

The market has also been ignoring a continued recovery in the US markets. On Monday, the Dow Jones industrial average gained another 64.98 points, or 0.65%, to 11,061.52 and the tech-heavy Nasdaq composite index inched forward by 6.49 points, or 0.20%, to settle at 2,155.93.

Back home, today, the BSE Sensex opened in the red with a gap of 3 points at 3,496. After a brief initial spurt to the day's high of 3,510.68, it came off as selling pressure gained ground on select heavyweights. Towards the close, the Sensex touched the day's low of 3,434.88 before settling at 3,460.04, thereby losing 38.34 points, or 1.10%, from its previous close.

The NSE S & P CNX Nifty index also shed 11.2 points to settle at 1,116.

Turnover on BSE rose to Rs 1,458.08 crore (Rs 1,122.04 crore on 4 June 2001) from 8.69 crore shares traded. Of the 1,399 issues that were traded on BSE today, declines out-numbered advances with 793 losers and 451 gainers. 155 issues remained unchanged.

Pivotal stocks
Selling pressure was seen almost across the board.

PSU basic telecom service provider MTNL (down 6.45% to Rs 132.70) lost ground due to institutional as well as speculative selling. A section of the market believes that the recent aggressive cuts in cellular tariffs by its competitors BPL and Orange in the Mumbai circle would not only affect the company's cellular operations, it is also likely to eat into the company's fixed line business.

PSU electrical equipment major Bhel (down 5.15% to Rs 174.95) lost ground on institutional profit booking.

FMCG heavyweight Hindustan Lever (down 2.05% to Rs 183.90) lost ground amid concerns over the company's retail sales falling in April. In a recent research note quoting figures from market researcher ORG-Marg, a foreign brokerage said HLL's retail sales dropped 4.7% in April over a year ago.

Tech major NIIT (down 3.65% to Rs 438) lost ground on profit booking. The stock, however, recovered from its intra-day low of Rs 420.

Satyam Computers declined from a high of Rs 209.35 to Rs 200.25 before settling at Rs 203.95, losing 0.56% from its previous close. Over 76 lakh Satyam shares were traded on BSE today.

After its recent gains, Dr Reddy's Laboratories (down 2.33% to Rs 1,444) lost ground on profit booking.

Selling was also seen on pharmaceutical pivotals like Glaxo (down 2.63% to Rs 352.30), Cipla (down 1.35% to Rs 1,100.20) and Ranbaxy Laboratories (down 0.39% to Rs 472).

Cigarettes major ITC (down 2.25% to Rs 744) also lost ground on selling pressure following the objection by some of Life Insurance Corporation of India (LIC)'s directors to investing in tobacco companies as tobacco is harmful to the life insurance business. LIC has around 8.5% stake in ITC and is unlikely to make further investments in the company.

Selling was also witnessed on heavyweights like Zee Telefilms (down 3.43% to Rs 122.55), State Bank of India (down 1.91% to Rs 210.90), Reliance Petroleum (down 1.58% to Rs 49.85) and Reliance Industries (down 0.61% to Rs 372.65).

Cement pivotals like ACC (down 1.10% to Rs 139.55) and L & T (up 0.25% to Rs 241.25) came off on profit booking even after their impressive May numbers. While ACC's May 2001 shipments rose by 7.3% to 1.04 million tonne, that of L & T rose by 10.3% to 1.14 million tonne.

Selling was also seen on pivotals like ICICI, BSES, Hindalco, M & M, Tata Steel, HPCL, Castrol and Telco.

However, the losses of the Sensex were limited by aggressive buying in some other pivotals.

Bajaj Auto (up 8.54% to Rs 286.45) crossed 8% upper limit of the circuit breaker following its impressive May 2001 numbers. The company posted a 42% rise in motorcycle sales in May as volumes rose to 43,260 units from 30,440 units during the corresponding period last year. Its geared scooters sales for the month stood at 44,923 units (44,563 units). It sold 5,149 units of ungeared scooters in the month (6,982 units).

Tech heavyweight Infosys Technologies (up 4.14% to Rs 3,768) also spurted in an otherwise lacklustre market on institutional buying interest. The company has informed BSE that it will announce a joint venture with American Express, Tibco Software & Westbbridge Capital. The new partnership is expected to create new company offering online business solutions.

Counters like Nestle, Gujarat Ambuja Cements and Grasim also settled in the positive zone.

Tech stocks
Mixed trends were observed in non-Sensex tech stocks.

Kale Consultants (Rs 53.60) was frozen at the 16% upper limit of the circuit breaker.

Tata Elxsi (up 3.09% to Rs 86.80) was steady after posting Q4 results. For the quarter ended 31 March 2001, the infotech major posted a net profit of Rs 5.61 crore (Rs 5.16 crore) on sales of Rs 41.15 crore (Rs 41.24 crore).

Selective buying was seen on counters like Blue Star Infotech, Geometric Software, Ramco Systems, SSI, PSI Data Systems, Digital Equipment and Tata Infotech.

On the other hand, VisualSoft Technologies (Rs 142.75) hit the 8% lower limit of circuit breaker.

Selling was seen on counters like Mascot Systems, Polaris Software, Infotech Enterprises, Trigyn Technologies, Aptech, HCL Technologies, Hughes Software, Fujitsu ICIM, Pentasoft Technologies, Sonata Software, Silverline Technologies, R S Software, Subex Systems, Rolta India, DSQ Software, Wipro and Mastek.

Telecom stocks
Among telecom stocks, Shyam Telecom (down 9.83% to Rs 91.75) crossed the 8% lower limit of the circuit breaker.

Optical fibre makers Aksh Optifibre (down 6.54% to Rs 135.05) and Sterlite Optical (down 0.93% to Rs 408.50) lost ground on profit booking.

Global Tele-Systems (down 0.78% to Rs 209.60) and HFCL (down 2.46% to Rs 143) settled in the red.

Selling was seen in telecom stocks like Birla Ericsson, Vindhya Telelink, Framatome Connectors, Tata Telecom, Nelco, Goldstone Technologies, Mobile Telecom, Usha Beltron, Sterlite Industries, VSNL and Punjab Communications.

Media stocks
Media major Crest Communications (Rs 67) was frozen at the 16% upper limit of the circuit breaker.

Pentamedia Graphics (up 2.82% to Rs 96.75) gained ground on renewed institutional buying. Alliance Capital was informed to be active on the counter. The stock topped volumes on BSE with over 83 lakh shares traded.

Selective buying was seen on counters like Balaji Telefilms, Cinevista Communications and Sri Adhikari Brothers.

On the other hand, counters like Saregama India, Mid-Day Multimedia, Tips Industries, Pritish Nandy Communications, Padmalaya Telefilms, Creative Eye, TV 18, Jain Studios, Adlabs Films and Mukta Arts lost ground.

Pharmaceutical stocks
Pharmaceutical major Aurobindo Pharma (down 8.23% to Rs 236.85) crossed the 8% lower limit of circuit breaker.

Selling was seen in non-Sensex pharmaceutical stocks like Panacea Biotech, Cadila Healthcare, Glenmark Pharma, Nicholas Piramal, Novartis, Burroughs Wellcome, KDL Biotech, Hoechst Marion Roussel, Fulford, Abbott Laboratories, Morepen Laboratories, Wockhardt, SmithKline Beecham Pharma, German Remedies, Wyeth Lederele, Alembic, Sun Pharma, E.Merck, Astra-IDL, Knoll Pharma and Pfizer.

Selective buying was seen on the counters like Torrent Pharma, J B Chemicals, Duphar Interfran, Lupin Laboratories, FDC and Parke Davis.

FMCG stocks
Selling was also seen on the FMCG stocks like Gillette India, Bausch & Lomb, Bata India, McDowell, Tata Tea, Kodak India, Britannia Industries, Cadbury India, Dabur India, United Breweries, Reckitt Benckiser, SmithKline Beecham Consumer Healthcare and Nirma.

Selling was also seen on the banking stocks like Vysya Bank, Oriental Bank of Commerce, Global Trust Bank, J & K Bank, IndusInd Bank, ICICI Bank, Nedungadi Bank, Bank of India, United Western Bank, Federal Bank, IDBI Bank and HDFC Bank.

Side counters
Side counters like Shree Rama Multitech (Rs 45.30), Syngenta India (Rs 65.40) and HBL Nife Power (Rs 21.30) were frozen at the 8% upper limit of the circuit breaker.

Tata Honeywell (Rs 147) was also frozen at the 8% upper limit of the circuit breaker after the company posted FY 2001 results on Monday. For the year ended 31 March 2001, the company posted a net profit of Rs 19.4 crore (Rs 19.28 crore) on sales of Rs 275.89 crore (Rs 279.19 crore).

Instrumentation and electronics major Siemens (up 3.44% to Rs 210.50) also gained ground following the central government's nod for the buy-back plans of Siemens India. With this approval of buyback, the German major, Siemens AG, could increase its stake in the company from 51% to 60%.

Buying was also seen on the counters like Khandwala Securities, Tata Honeywell, Wendt, Aventis Cropscience, ICI India, ONCG, Moser Baer, Modi Rubber, Tata Chemicals, Gujarat Gas, Nalco, Esab India, Adani Exports, EIH and Kvaerner Cementation.

On the other hand, Hinduja Finance (down 8.07% to Rs 81.40) crossed the 8% lower limit of the circuit breaker and Flex Chemicals (Rs 56.40) and C Mac Centum (Rs 22.85) were frozen at the 8% lower limit of the circuit breaker.

Foseco India, Coulour Chem, Saw Pipes, Apollo Hospitals, Amara Raja Batteries, Tata Infomedia, Mirc Electronics, Videocon International, Titan Industries, Cummins India, Crisil, I B P, Philips India, Jindal Steel, Indo-Gulf Corp, Kotak Mahindra Finance, Essel Packaging, Bombay Dyeing, BPL, Hero Honda Motors, Asian Paints, Bharat Forge and Sesa Goa were some of the other counter which witnessed selling today.

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