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Sensex loses further ground

The market came off after a firm opening on Wednesday as profit booking emerged in Old as well as New Economy stocks. After intra-day movements of 60 points, the BSE 30-share Sensitive Index (Sensex) settled with a loss of 2.73 points to 3,457.31, its sixth straight loss.

The market opened firm today, encouraged by a sustained rally in the US markets. Software stocks opened firm in continuation of a recovery in the US markets on Tuesday. However, they lost ground later in the day on profit booking at higher levels, pulling down the Sensex. The overall movements in the market remained lacklustre amid low volumes.

US stocks rose for a fourth straight session on Tuesday after some tech companies signaled that the worst news about slowing profits might be over. Technology shares posted huge gains, pushing up the Nasdaq composite index by 77.73 points to 2,233.66. The Dow Jones industrials rose by 114.32 points to 11,175.84 helped by gains in retail, energy and drug stocks.

Back home, the BSE Sensex opened in the positive zone with a gain of 13.28 points at 3,473.32. Fresh buying in New as well as Old Economy stocks in initial trades saw the Sensex crossing the 3,500-mark to touch a high of 3,507.24. However, it came off on profit booking at higher levels and moved in a narrow range for the rest of the session. It sank into the red later in the day and touched a low of 3,448.44. In the end, the Sensex settled at 3,457.31, losing 2.73 points, or 0.08%, from its previous close.

The NSE CNX S & P Nifty index shed 0.1 % to settle at 1,115.7.

Turnover on the BSE dropped to Rs 1.017.83 crore (Rs 1,458.08 crore on 5 Jun 2001) from 6.11 crore shares traded. Of the 1,377 issues traded on BSE today, advances out-numbered declines with 656 gainers and 604 losers. 117 issues remained unchanged.

Pivotal stocks
Pivotal stocks displayed mixed trends.

Two and three wheeler major Bajaj Auto (down 3.98% to 375.05) lost ground on profit booking after sharp gains on Tuesday. The stock gained over 8% on Monday after the company announced a 42% spurt in its May 2001 motorcycle sales.

Reliance group heavyweights Reliance Industries (down 1.95% to Rs 365.40) and Reliance Petroleum (down 0.90% to Rs 49.30) lost ground on profit booking. Canbank Offshore Fund was believed to be an aggressive seller on the Reliance Industries counter.

Selling was also seen on Tata group pivotals like Telco (down 2.16% to Rs 76.90) and Tata Steel (down 1.55% to Rs 133.80).

Cement major ACC (down 3.05% to Rs 135.10) lost ground on profit booking.

Selling pressure hammered down pharma major Glaxo by 2.62% to Rs 344.10.

Scrips like Colgate, Castrol, Hindalco and Nestle also settled in the red.

Meanwhile, tech pivotals Satyam Computer (up 2.75% to Rs 209.35) and NIIT (up 2.37% to Rs 447) gained over their previous close, but came off from their day's highs on profit booking at higher levels.

Infosys Technologies (down 0.04% to Rs 3,781) came off sharply from its intra-day high of Rs 3,911.10 on profit booking. The stock opened firm after the tech major announced the formation of a joint venture with American Express, Tibco Software and WestBridge Capital Partners. The new company, called Workadia LLC, will host portals through which companies can customise their own computer networks. Infy, the Infosys Technologies ADS on Nasdaq, spurted by $ 6.92 on Wednesday to $ 71.90.

Ranbaxy Laboratories (up 1.38% to Rs 477) rose after its subsidiary Ranbaxy Netherlands B.V and Vectura - a world leader in the application of particle science for the development of novel drug delivery systems - announced a joint programme. The majors plan to develop a novel cost-effective patent protected oral-controlled release technology with potential application for a broad range of pharmaceuticals compounds.

Selective buying was also witnessed in financial sector stocks like ICICI (up 1.11% to Rs 77.60) and State Bank of India (up 1.54% to Rs 213.80).

Heavyweights ITC (up 0.98% to Rs 749.50) and Hindustan Lever (up 0.46% to Rs 184.70) recovered on bargain buying after sharp fall on Tuesday.

Tech stocks
Among non-Sensex tech stocks, Tata Infotech (up 0.94% to Rs 177.40) settled almost flat, coming off from an intra-day high of Rs 191 after the company posted FY 2001 results. For the quarter ended 31 March 2001, the company posted a net profit of Rs 26.54 crore (Rs 12.20 crore) on sales of Rs 523.62 crore (Rs 432.31 crore).

Mascot Systems (up 1.87% to Rs 111.65) was steady after the company announced that it had been assessed at Level 4 of the Capability Maturity Model (CMM) by the Software Engineering Institute (SEI).

Selective buying interest was also seen in frontline tech stocks like Hughes Software, Wipro, HCL Technologies, Polaris Software and SSI.

Second-rung software stocks like KLG Systel, Infotech Enterprises, Onward Technologies, Sierra Optima, Information Technologies, CMC, Geometric Software, Sonata Software, Trigyn Technologies, R S Software, Pentasoft Technologies, Mphasis BFL, DSQ Software and Rolta India also settled in the positive zone.

On the other hand, Maars Software, Blue Star Infotech, PSI Data Systems, Soffia Software, Mindteck and Aztec Software settled in the red.

Telecom stocks
Among telecom stocks, optical fibre makers Aksh Optifibre (up 1.92% to Rs 138.25) and Sterlite Optical (up 0.34% to Rs 409.35) shed almost all their earlier gains towards the close of the session on profit booking.

Global Tele-Systems (down 0.86% to Rs 207.35) and HFCL (down 0.59% to Rs 142.20) also lost ground on continued selling.

Selective buying was seen on the other telecom counters like Krone Communications, Goldstone Technologies, Nelco, Punjab Communications, Birla Ericsson, Sterlite Industries, Framatome Connectors and Finolex Cables.

On the other hand, Mobile Telecom (Rs 27.65) hit 8% lower limit of the circuit breaker. Selling was also seen on the counters like Usha Beltron, Shyam Telecom, Surana Telecom, Vindhya Telelink and ITI.

Media stocks
Among the media stocks, Pentamedia Graphics (up 2.33% to Rs 98.85) gained further ground on institutional buying. The Pentamedia stock topped volumes on BSE with over 63 lakh shares being traded.

Buying was also seen on media counters like Creative Eye, Pritish Nandy Communications, Mid-Day Multimedia, TV 18, Cinevista Communications, Crest Communications, Tips Industries, Jain Studios, Balaji Telefilms, Adlabs Films, Saregama India and Mukta Arts.

Others like Vision Techno, Padmalaya Telefilms and Sri Adhikari Brothers settled in the red.

Banking stocks
Among banking stocks, Corporation Bank (down 0.10% to Rs 138) lost marginally after the company posted its results. For quarter ended 31 March 2001, the banking major posted a net profit of Rs 45.33 crore (Rs 55.02 crore) on an income of Rs 536.39 crore (Rs 507.08 crore).

Selling was also seen on the other banking stocks like IDBI Bank, Nedungadi Bank and Oriental Bank of Commerce.

Bank of India (up 6.83% to Rs 14.85) gained ground after the company posted its FY 2001 results. For the year ended 31 March 2001, the banking major posted a net profit of Rs 215.88 crore (Rs 172.82 crore) on an income of Rs 6,178.78 crore (Rs 5,622.53 crore).

Counters like Vysya Bank, Bank of Baroda, UTI Bank, HDFC Bank, Federal Bank, IndusInd Bank and ICICI Bank settled in the positive zone.

Pharmaceutical stocks
Selective buying was seen on the non-Sensex pharmaceutical counters like Alembic, FDC, Krebs Biochem, Cadila Healthcare, Nicholas Piramal, Panacea Biotech, Knoll Pharma, Pfizer, Wyeth Lederele, Aurobindo Pharma, Fulford, KDL Biotech, Rhone Poulenc, Novartis, Morepen Laboratories, Wockhardt and Abbott Laboratories.

On the other hand, J B Chemicals, SmithKline Beecham Pharma, Suven Pharma, Glenmark Pharma, Lupin Laboratories, Astra IDL, Hoechst Marion Roussel, Ipca Laboratories, Torrent Pharma, E Merck, Burroughs Wellcome and Sun Pharma settled in the red.

FMCG stocks
Among FMCG stocks, VST Industries (Rs 144.70) hit 8% upper limit of the circuit breaker following the hike in the open offer to Rs 151 per share from the Bright Star Investments. Selective buying was also seen on stocks like Gillette India, Kodak India, United Breweries, Cadbury India, SmithKline Beecham Consumer Healthcare and Nirma.

On the other hand, Britannia Industries, Procter & Gamble, Reckitt Benckiser, McDowell, Dabur India, Bata India and Tata Tea were settled in the red.

Side counters
Among the side counters, Hero Honda Motors (up 10.42% to Rs 142) crossed 8% upper limit of the circuit breaker after the company announced a 27.7% surge in its motorcycle sales to 105,099 in the month of May 2001.

Tata Infomedia (Rs 132.90) hit the 8% upper limit after the company announced that it would consider a bonus issue in its forthcoming board meeting on 14 Jun 2001.

Bayer India (Rs 469.85), HBL Nife Power (Rs 23) and Motherson Sumi (Rs 92.85) were frozen at the 8% upper limit.

ICI India (up 3.66% to Rs 70.80) was firm ahead of its announcement of the FY 2001 results. For the year ended 31 March 2001, the chemicals major posted a net profit of Rs 69.21 crore (Rs 64.15 crore) on sales of Rs 753.43 crore (Rs 805.01 crore).

Asian Paints (up 1% to Rs 252.65) remained steady ahead of the announcement of FY 2001 results. For the year ended 31 March 2001, the paints major posted a net profit of Rs 106.39 crore (Rs 97.34 crore) on sales of Rs 1,215.01 crore (Rs 1,079.75 crore).

Buying was seen on side counters like Foseco India, Wellwin Industry, Thermax, Shree Rama Multitech, Navneet Publications, Agro Dutch Foods, Moser Baer, Amara Raja Batteries, Blue Dart Express, Vikas WSP, Bharat Forge, Max India, Cummins India, Ashok Leyand and I BP.

On the other hand, Saw Pipes (Rs 131.70) and Gati Corporation (Rs 45.95) hit 8% lower limit of the circuit breaker.

BPCL (down 2.52% to Rs 178.30) lost ground after the company posted its Q4 results. For the quarter ended 31 March 2001, the PSU refining major posted a net profit of Rs 160 crore (Rs 154.50 crore) on sales of Rs 12,760 crore (Rs 10,786.40 crore).

Selling was also seen on side counters like Himatsingka Seide, Century Enka, Rallis India, ITW Signode, Syngenta India, Jindal Steel, Jaiprakash Industries, Siemens, Basf India, Kvaerner Cementation, Siemens, Adani Exports and Alfa Laval.

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