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Sensex gains 39 points on bargain hunting

The market snapped its seven-session losing streak today as bargain hunters stepped in and made fresh purchases.

Renewed buying support in Old as well as New Economy stocks lifted the Bombay Stock Exchange (BSE) 30-share Sensitive Index (Sensex) by 38.60 points to 3,495.84.

Buying support was seen from institutions as well as operators. Encouraged by a recovery on tech-heavy Nasdaq on Thursday and sustained purchases by foreign institutional investors (FIIs), operators also made fresh purchases even though the 2 July 2001 deadline for a ban on carry-forward is fast approaching.

While buying was almost across-the-board, it was conspicuous in Old Economy stocks.

The BSE Sensex opened in the positive zone with a gap of 9.42 points at 3,466.66. It gained ground initially, but came off later on selling pressure at higher levels. The Sensex retreated into the red for some time, touching an intra-day low of 3,452.95. However, renewed buying at lower levels resulted in the Sensex bouncing back to a high of 3,502.78 later in the session before ending at 3,495.84, gaining 38.60 points or 1.12% over its previous close.

The National Stock Exchange's S&P CNX Nifty index closed 14.25 points higher at 1,126.60.

Turnover on BSE rose to Rs 1,351.97 crore (Rs 1,267.27 crore on 7 June 2001) from 8.10 crore shares traded. Of the 1,509 issues traded, advances outnumbered declines with 702 gainers and 658 losers. 149 issues remained unchanged.

Pivotal stocks

Old Economy stocks were in the limelight on institutional as well as operator-based bargain hunting.

Private sector refining major Reliance Petroleum (up 4.59% to Rs 51.25) was the biggest gainer among Sensex stocks. Over 44.54 lakh RPL shares were traded on BSE.

Reliance Industries (up 1.33% to Rs 369.65) also rose further on bargain hunting.

Capital International was believed to be a buyer in both the Reliance group heavyweights. Canbank Offshore Fund, which has been on a restructuring mode of late, had dumped huge quantities of these stocks in the last few sessions.

Bhel (up 3.07% to Rs 182.90) moved up on institutional buying support after the company announced that it would go for another VRS in keeping with the larger goal of achieving better operational efficiencies and performance. The company scrapped over 9,100 jobs in one such scheme last year.

Bajaj Auto (up 2.79% to Rs 284) bounced back from an intra-day low of Rs 274.50.

Tech pivotals also helped the Sensex to post gains.

Satyam Computer moved up from an intra-day low of Rs 207.30 to a high of Rs 215.20 before settling at Rs 214.85, up 3.69% over its previous close. Satyam topped volumes on BSE with over 70 lakh shares being traded.

Infosys Technologies also rose from a low of Rs 3,851.10 to Rs 3,969 before settling at Rs 3,948, up 1.78% over its previous close. Infy, the Infosys ADS listed on Nasdaq, gained $4 to $74 on Thursday.

NIIT moved up from an intra-day low of Rs 431.60 to Rs 446 before settling at Rs 442.50, gaining 1.69% over its previous close.

Media major Zee Telefilms (up 1.84% to Rs 124.60) attracted selective buying support at lower levels.

Pharmaceutical MNC Glaxo (up 2.11% to Rs 327.10) recovered on bargain hunting at lower levels. The stock had shed over 7% on Thursday on profit-booking.

Cement pivotals like ACC (up 2.53% to Rs 139.90), Gujarat Ambuja Cements (up 1.49% to Rs 333.20) and L & T (up 0.89% to Rs 238.50) also posted gains. Unit Trust of India was believed to have been active on the ACC counter.

Commercial vehicle and passenger car major Telco (up 2.37% to Rs 75.65) recovered on fresh buying after the company announced on Thursday that it sold 4,763 units of its passenger car Indica in May 2001, which is up 47% over the sales of the previous month.

On the other hand, ITC (down 0.79% to Rs 734) slipped after a U.S. court slapped the cigarette maker Philip Morris with a record $3 billion in damages. This is likely to raise concerns of a possible similar action in India, too.

Other pivotals like MTNL, Cipla, Castrol and Hindustan Lever also settled in the red.

Fast moving consumer goods (FMCG) major Nestle (down 0.02% to Rs 520.05) settled almost flat. After market hours, the company announced an interim dividend of 40%.

Tech stocks

Among non-Sensex tech stocks, Aptech (up 13.83% to Rs 117.30) crossed 8% upper limit of the circuit breaker following the announcement about the company's restructuring plans. As per the restructuring exercise, the company will de-merge its IT education business into a separate subsidiary and Hexaware Technologies, an unlisted company, would be merged with the company.

Kale Consultants (Rs 57.15) was frozen at 8% upper limit of the circuit breaker. PSI Data Systems (up 10.33% to Rs 175.15) and Polaris Software (up 8.83% to Rs 395) crossed 8% upper limit.

Digital Equipment (Rs 565.70), Fujitsu ICIM (Rs 76.95) and Infotech Enterprises (Rs 104.95) were frozen at 8% upper limit of the circuit breaker.

Buying was also seen in non-Sensex tech stocks like Geometric Software, Wipro, Trigyn Technologies, Mastek, Mphasis BFL, Mascot Systems, SSI, R. S. Software, Hughes Software, Rolta India, Aftek Infosys, HCL Technologies, Sonata Software, DSQ Software, Silverline Technologies, Subex Systems and Aztec Software.

On the other hand, Information Technologies, VisualSoft Technologies, Pentasoft Technologies and Tata Infotech settled in the negative territory.

Telecom stocks

Among telecom stocks, while Krone Communications (Rs 129.70) hit 16% upper limit of the circuit breaker, Shyam Telecom (up 10.27% to Rs 83.20) crossed 8% upper limit on bargain hunting.

Convergence majors Global Tele-Systems (up 2.80% to Rs 211.05) and HFCL (up 1.74% to Rs 137.70) gained ground on renewed buying support.

Surana Telecom (up 5.22%) moved up after impressive quarterly results. For the quarter ended 31 March 2001, the telecom equipment major posted a net profit of Rs 1.89 crore (Rs 0.94 crore) on sales of Rs 34.17 crore (Rs 19.93 crore).

Buying was also seen in telecom-related stocks like Surana Telecom, Mobile Telecom, Sterlite Optical, Birla Ericsson, Tata Telecom, Vindhya Telelink and Punjab Communications.

On the other hand, counters like Usha Beltron, Nelco, Aksh Optifibre and VSNL settled in the red on profit-booking.

Media stocks

Among media stocks, Crest Communications (Rs 76.05) and Jain Studios (Rs 60.80) were frozen at 16% upper limit of the circuit breaker. Tips Industries (Rs 90) hit 8% upper limit.

Buying was seen in Balaji Telefilms, Sri Adhikari Brothers, TV 18, Cinevista Communications, Pentamedia Graphics and Mukta Arts.

On the other hand, Vision Tech, Pritish Nandy Communications, Padmalaya Telefilms, Saregama India and Creative Eye settled in the red.

Pharmaceutical stocks

Selective buying was seen in non-Sensex pharmaceutical stocks like FDC, Fulford, Rhone Poulenc, Torrent Pharma, Parke Davis, Morepen Laboratories, Krebs Biochem, Ipca Laboratories, Novartis, Knoll Pharma, Orchid Chemicals, Wyeth Lederle, Sun Pharma, Nicholas Piramal, Lupin Laboratories, Suven Pharma, Wockhardt, German Remedies, SmithKline Beecham Pharma and Cadila Healthcare.

On the other hand, Duphar Interfran, Glenmark Pharma, Astra IDL, Neuland Laboratories, Abbott Laboratories, Hoechst Marion Roussel, E. Merck, KDL Biotech, Burroughs Wellcome, Panacea Biotech, Pfizer and Aurobindo Pharma settled in the red.

FMCG stocks

Buying was seen in FMCG stocks like Britannia Industries, Tata Tea, SmithKline Beecham Consumer Healthcare, McDowell and Shaw Wallace.

On the other hand, Bata India, Archies Greetings, United Breweries, Kodak India, Reckitt Benckiser, VST Industries, Dabur India, Bausch & Lomb, Gillette India, Nirma and Cadbury India declined on selling pressure.

Banking stocks

Among banking stocks, Corporation Bank (Rs 141.30) hit 8% upper limit of the circuit breaker following fresh buying support at lower levels after the company announced on Wednesday that Life Insurance Corporation (LIC) of India would take a 27% stake in it.

Buying was also seen in other banking stocks like IDBI Bank, South Indian Bank, ICICI Bank, United Western Bank, Bank of Punjab, HDFC Bank and Bank of India.

On the other hand, Bank of Baroda, Bank of Rajasthan, Federal Bank, Oriental Bank of Commerce, Centurion Bank, IndusInd Bank and Vysya Bank settled in the red.

Side counters

Among side counters, Modi Rubber (Rs 65.30) remained frozen at 8% upper limit of the circuit breaker for the entire session after financial institutions (FIs) opposed the Modis' bid to take 35% stake in the company.

FIs have threatened to make a counter-offer to the one made by the promoters. Players expect that the counter-offer from the FIs, if it materialises, will be at a higher price than that offered by the Modis.

Syngenta India (Rs 68.65) hit 8% upper limit of the circuit breaker.

Buying was seen on counters like Kotak Mahindra Finance, Century Enka, Foseco India, Hinduja Finance, Shree Rama Multitech, Tata Power, Tata Honeywell, Motherson Sumi, BPCL, Colour Chem, Sesa Goa, Bayer Diagnostics and Century.

Morepen Hotels (Rs 79.65), Albright Wilson (Rs 124.25) and Bhagyanagar Metals (Rs 58.45) hit 8% lower limit of the circuit breaker.

Selling was seen in Shipping Corporation of India, Elbee Services, Atlas Copco, Adani Exports, Voltas, ABB, Blue Dart Express, Jindal Steel, Exide Industries, Nalco, Tata Infomedia, Ingersoll Rand, Max India, Amara Raja Batteries, Mirc Electronics, Crisil and

Source: www.capitalmarket.com

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