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Selling pressure pulls down Sensex by 48 points

The market declined further today on selling pressure in New as well as Old Economy stocks.

After remaining in the red for the entire trading session, the Bombay Stock Exchange (BSE) 30-share Sensitive Index (Sensex) settled with a loss of 47.84 points at 3,453.77.

The sentiment remained bearish ahead of the fast approaching 2 July 2001 deadline banning the carry-forward system of trading. Heavy selling pressure was seen in a number of scrips which are entering no-delivery period from Monday on BSE. Operators will have to unwind outstanding long positions in these scrips or they have to take delivery on Friday, as carry-forward will not be allowed after two settlements.

While there was hardly any fresh buying, selling pressure was seen almost across- the-board encompassing infotech, telecom, media, automobile, cement, pharmaceutical and fast moving consumer goods (FMCG) stocks. News-specific buying support was seen on some side counters.

The BSE Sensex opened in the red with a gap of 10 points at 3,491.36 following a further fall on tech-heavy Nasdaq on Wednesday. After touching an intra-day high of 3,501.50, the Sensex slipped on profit-booking. It touched a low of 3,446.96 before settling at 3,453.77, losing 47.84 points or 1.37% from its previous close.

The National Stock Exchange's S&P CNX Nifty Index also shed 17.1 points to close at 1,111.90.

Turnover on BSE dropped further to Rs 1,186.86 crore (Rs 1,206.92 crore on 13 June 2001) from 6.95 shares traded. Of the 1,448 issues traded, declines outnumbered advances with 890 losers and 427 gainers. 131 issues remained unchanged.

Pivotal stocks

Pivotals lost ground. Twenty-three out of thirty Sensex scrips settled in the red.

Media major Zee Telefilms (down 5.35% to Rs 119.50) came off sharply. The stock had opened steady following the company's decision to convert two of its channels -- Zee TV and Zee News -- into pay channels from 10 June 2001, with Rs 30 as subscription charges fixed for the entire Zee bouquet. However, profit- booking at higher levels shaved off all its gains and the stock ended in the red. Over 35 lakh Zee shares were traded on BSE.

Tech stocks like NIIT (down 3.87% to Rs 416.50), Satyam Computer (down 4.23% to Rs 199.30) and Infosys Technologies (down 0.60% to Rs 3,802) declined on profit-booking following a further fall on Nasdaq on Wednesday.

Among Old Economy stocks, L&T (down 5.26% to Rs 226.25) slipped on selling pressure from institutions as well as speculators. While Jardine Fleming sold the L&T stock, operators also followed suit as the scrip enters the no-delivery period from Monday.

Other cement pivotals like ACC (down 1.84% to Rs 136.30), Grasim (down 0.98% to Rs 327.60) also lost ground on selling pressure.

Selling was seen in automobile pivotals like Bajaj Auto (down 3.78% to Rs 257.30) and M&M (down 3.55% to Rs 104.75).

Commercial vehicles major Telco (down 2.32% to Rs 71.50) also came off ahead of the announcement of its Q4 results.

Reliance group heavyweight Reliance Industries (RIL) (down 3.06% to Rs 363.05) and Reliance Petroleum (down 2.26% to Rs 49.65) declined on profit-booking. Jardine Fleming was believed to have turned a seller on the RIL counter.

Selling was seen in pharmaceutical pivotals like Glaxo (down 1.13% to Rs 333.50), Ranbaxy Laboratories (down 0.75% to Rs 476) and Cipla (down 0.48% to Rs 1,110.60).

Stocks like Bhel, State Bank of India, Castrol, ICICI, Tata Steel, HPCL and ITC also settled in the negative zone.

On the other hand, MTNL (up 0.83% to Rs 127), Hindalco (up 0.64% to Rs 851.10) and Nestle (up 0.62% to Rs 530) gained ground on value buying.

LIC made some purchases on the MTNL counter.

FMCG pivotals Colgate (up 0.55% to Rs 164.70) and Hindustan Lever (up 0.47% to Rs 194.05) settled in the positive zone.

Tech stocks

Non-Sensex tech stocks declined.

Mphasis BFL (down 8.93% to Rs 199.95) slipped on profit-booking after posting sharp gains on Wednesday. The stock had gained ground on rumours of the company having placed 7% equity with a venture capital fund at a substantial premium to the market price.

Among the others, Infotech Enterprises (Rs 110.65) hit 8% lower limit of the circuit breaker. Selling was seen on other tech counters like Subex Systems, Geometric Software, Orient Information, Fujitsu ICIM, Kale Consultants, Trigyn Technologies, Digital Equipment, VisualSoft, DSQ Software, Mastek, Silverline Technologies, Aptech, Wipro, Polaris Software, SSI, Mascon Global, PSI Data Systems, Hughes Software and HCL Technologies.

Telecom stocks

Among telecom stocks, Aksh Optifibre (down 5.12% to Rs 144.45) and Sterlite Optical (down 5.13% to Rs 413.05) declined on profit-booking after Wednesday's spurt.

HFCL (down 9.62% to Rs 120.70) slipped further on rumours. One rumour was that the company was facing cash flow problems, while the other was about the split between Vinay Maloo and Mahendra Nahta.

Selling was seen in other telecom-related stocks like Mobile Telecom, Vindhya Telelink, Krone Communications, Punjab Communications, Shyam Telecom, Goldstone Technologies, Birla Ericsson, Surana Telecom, Nelco, ITI, Finolex Cables and VSNL.

Tata Telecom (up 3.64% to Rs 71.10) and Framatome Connectors (up 1.08% to Rs 121.45) ended in positive territory.

Media stocks

Media stocks declined on profit-booking after recent gains.

While Crest Communications (down 9.48% to Rs 74.50) crossed 8% lower limit of the circuit breaker, stocks like Mukta Arts, Tips Industries, Adlabs Films, Mid-Day Multimedia, TV 18, Balaji Telefilms, Pentamedia Graphics, Pritish Nandy Communications, Sri Adhikari Brothers, Cinevista Communications and Padmalaya Telefilms declined.

Pharmaceutical stocks

Among non-Sensex pharmaceutical stocks, Duphar Pharma (Rs 172.80) remained frozen at 8% upper limit of the circuit breaker following the Foreign Investment Promotion Board's approval to Belgian multinational Solvay Pharmaceutical to acquire 21.8% equity stake in the company.

J. B. Chemicals (Rs 95.65) hit 8% upper limit of the circuit breaker on impressive FY 2001 results. For the year ended 31 March 2001, the pharma major posted a 41.81% rise in net profit to Rs 31.23 crore (Rs 22.02 crore) on sales of Rs 246.07 crore (Rs 181.07 crore).

On the other hand, Panacea Biotech, Kopran, Alembic, E. Merck, Ipca Laboratories, Cadila Healthcare, Suven Pharma, Rhone Poulenc, Glenmark Pharma, Lupin Laboratories, Pfizer, SmithKline Beecham Pharma, Parke Davis, Burroughs Wellcome, Nicholas Piramal, Astra IDL, Hoechst Marion Roussel, Knoll Pharma, German Remedies, Novartis and Abbott Laboratories slipped on profit-booking.

FMCG stocks

Selling was seen in FMCG stocks like Kodak India, United Breweries, Bausch & Lomb, McDowell, Gillette India, Reckitt Benckiser, Tata Tea, Bata India, Nirma, Dabur India, Procter & Gamble and SmithKline Beecham Consumer Healthcare.

On the other hand, Britannia Industries (up 0.84% to Rs 650.50) remained steady ahead of the company's board meeting to consider the proposal for buy-back of shares.

VST Industries rose further after volatile trading. The stock came off from a high of Rs 168 to Rs 152.55 before settling at Rs 158.20, gaining 1.12% over its previous close. After market hours, the company announced that it would support BAT's decision to hike its stake in the company. However, the possibility of BAT hiking its stake in the company will depend on whether it can get approvals from regulators, as the existing rules restrict foreign direct investment in tobacco companies.

Banking and finance stocks

Selling was seen in banking and finance stocks like HDFC Bank, UTI Bank, Tata Finance, Corporation Bank, Bank of Baroda, Dhanlakshmi Bank, IDBI Bank, United Western Bank, Federal Bank, IndusInd Bank, LIC Housing Finance, Oriental Bank of Commerce, Global Trust Bank, HDFC and ICICI Bank.

Bank of India, Nedungadi Bank, South Indian Bank, Bank of Punjab and J & K Bank settled in the positive zone.

Side counters

Among the side counters, Bombay Dyeing (up 11.86% to Rs 51.40) crossed 8% upper limit of the circuit breaker once again ahead of the company's board meeting to consider the proposal of share buy-back.

Sesa Goa (Rs 63.05) hit 8% upper limit of the circuit breaker after the company posted impressive FY 2001 results. For the year ended 31 March 2001, the iron ore major posted a net profit of Rs 18.31 crore (Rs 7.23 crore) on sales of Rs 289.49 crore (Rs 246.20 crore). For the quarter ended 31 March 2001, the company posted a net profit of Rs 11.73 crore (loss of Rs 2.01 crore) on sales of Rs 103.43 crore (Rs 77.49 crore).

Foseco India (Rs 90.60) hit 8% upper limit of the circuit breaker. The scrip has been hitting 8% upper limit since the last three sessions after a Securities and Exchange Board of India panel on takeovers directed BP Amoco to make an open offer to the shareholders of the company within 45 days.

International Travel House (Rs 31.85) and Welspun India (Rs 63.95) also hit 8% upper limit.

Buying was also seen on other side counters like Thomas Cook, D-Link India, Tata Honeywell, Morepen Hotels, ITW Signode, TVS Electronics, HBL Nife Power, Navneet Publications, Ucal Fuel, Balrampur Chini, Blue Dart Express, ONGC, Alfa Laval, Nalco, Asian Paints and Carrier Aircon.

On the other hand, DSQ Biotech (down 9.93% to Rs 40.35) crossed 8% lower limit of the circuit breaker.

Elbee Services (Rs 128.95) and MRO- Tek (Rs 25.50) hit 8% lower limit.

Selling was also seen in Syngenta India, Amara Raja Batteries, Aventis Cropscience, Jindal Steel, TVS Suzuki, Ingersoll Rand, Madura Coats, Max India, Videocon International, Crisil, Titan Industries, Shree Rama Multitech, Bharat Forge, Hinduja Finance, Saw Pipes, Wartsila India, Indo-Gulf Corp, BPL, Ashok Leyland, IPCL and Sterlite Industries.

Source: www.capitalmarket.com

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