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New Economy stocks leads 80-point fall in Sensex

The market lost further ground on Friday as profit booking continued in New as well as Old Economy stocks. After remaining in the red for the entire session, the BSE 30-share Sensitive Index (Sensex) shed another 80.83 points to settle at 3,372.94.

With Sebi's deadline banning carry-forward trading approaching fast, operators preferred to unwind long positions, leading to a further fall in stock prices. Some leading specified group companies are entering the `no delivery' period from next week. Operators having positions in these scrips had little option but to unwind or take delivery. Institutional investors were also informed to have remained sellers.

The BSE Sensex opened in the red with a gap of 19.44 points at 3,434.33. It remained in the red for the entire session. During the day, it touched a low of 3,360.11 before settling at 3,372.94, losing 80.83 points or 2.34% from its previous close.

The NSE S & P CNX Nifty Index shed 24.10 points to settle at 1,088.65.

While selling was seen almost across the board, tech stocks were the worst hit following a further fall in the tech-heavy Nasdaq on Thursday.

Tech pivotals like Infosys Technologies (down 10.60% to Rs 3,400) and NIIT (down 9.77% to Rs 375) crossed the 8% lower limit of the circuit breaker on institutional as well as operator selling.

Satyam Computer (down 3.91% to Rs 191.50) lost ground on institutional selling, but recovered from an intra-day low of Rs 185.50. Over 43 lakh Satyam shares were traded on BSE today.

Media major Zee Telefilms (down 9.41% to Rs 108.25) crossed the 8% lower limit of the circuit breaker on further selling pressure.

Among Old Economy stocks, Telco (down 3.79% to Rs 68.55) lost ground after the company announced its disappointing FY 2001 results on Thursday after market hours. For the year ended 31 March 2001, the commercial vehicles major posted a net loss of Rs 500.34 crore (NP Rs 71.20 crore) on sales of Rs 8,095.79 crore (Rs 8,789.91 crore). This is the company's biggest ever loss.

M & M (down 5.10% to Rs 99.50) remained subdued after touching a new 52-week low of Rs 98.05 in afternoon trades. The company's production at its Kandivali plant will be curtailed by three days to regulate production in response to seasonal market demand and for better inventory management.

Cement pivotals like L & T (down 3.44% to Rs 219), Grasim (down 2.32% to Rs 320) and ACC (down 1.91% to Rs 133.40) were weak.

Selling was seen in pharmaceutical pivotals like Ranbaxy Laboratories (down 5.22% to Rs 451.05), Dr Reddy's Laboratories (down 2.50% to Rs 1,452) and Cipla (down 0.88% to Rs 1,102.05).

Reliance Industries (down 1.47% to Rs 358.20) remained subdued even after the optimism expressed by the chairman Dhirubhai Ambani at the company's AGM held in Mumbai today. The company expects consolidated sales of Rs 35,000 crore and a consolidated net profit of Rs 5,000 crore for the current financial year. The shareholders of the company have approved the hike in FII investment limit to 49%.

Selling was seen in pivotals like ICICI, ITC, Tata Steel, Colgate, BSES, Castrol, Bhel, Hindalco, HPCL and Reliance Petroleum.

Hindustan Lever (up 2.56% to Rs 198.50) managed to settle in the positive zone on selective buying interest.

Glaxo and Gujarat Ambuja Cements also settled in the positive zone.

Among non-Sensex tech stocks, Kale Consultants (down 15.64% to Rs 47.45) crossed the 8% lower limit of the circuit breaker after the company posted disappointing FY 2001 results. For the year ended 31 March 2001, the company posted a loss of Rs 6.73 crore (NP Rs 8.6 crore) on sales of Rs 35 crore (Rs 30 crore).

Other tech stocks like SSI (down 14.78% to Rs 337), Mastek (down 14.15% to Rs 111.30), DSQ Software (down 11.05% to Rs 70), Silverline Technologies (down 9.93% to Rs 70.30) and Aptech (down 9.37% to Rs 93.35) also crossed the 8% lower limit of the circuit breaker on speculative unwinding.

Subex Systems (Rs 50.85) and Mindteck (Rs 27.75) hit the 8% lower limit of the circuit breaker.

Selling was seen in tech stocks like Trigyn Technologies, Fujitsu ICIM, HCL Infosystems, Rolta India, PSI Data Systems, Aztec Software, Aftek Infosys, Digital Equipment, VisualSoft Technologies, Wipro, Information Technologies, Sonata Software, R S Software, Tata Infotech, Pentasoft Technologies, Polaris Software and Hughes Software.

On the other hand, CMC (up 4.38% to Rs 306) managed to buck the trend following reports that the UK-based asset management group, Schroder, plans to take the government's 57% stake in the company.

Mphasis BFL (up 2.37% to Rs 205) gained ground ahead of the company's board meeting to consider issue of equity shares on a preferential basis.

Among telecom stocks, HFCL (down 13.09% to Rs 104.60) crossed the 8% lower limit of the circuit breaker following speculative unwinding as well as institutional selling amid rumours that the company is facing cash flow problems.

Global Tele-Systems (down 9.05% to Rs 181.45) also exceeded the 8% lower limit of the circuit breaker.

Among optical fibre stocks, while Sterlite Optical (Rs 380.70) was frozen at the 8% lower limit of the circuit breaker, Aksh Optifibre (down 0.73% to Rs 143) recovered from an intra-day low of Rs 135 on renewed buying at the lower levels.

Krone Communications (down 8.39% to Rs 124.50) crossed the 8% lower limit of the circuit breaker after the BSE imposed a 25% special margin on the stock.

Selling was seen on telecom-related stocks like Nelco, Punjab Communications, Sterlite Industries, Framatome Connectors, Tata Telecom, VSNL, Birla Ericsson, Goldstone Technologies, Finolex Cables and Surana Telecom.

Media stocks continued to lose ground on profit booking / speculative unwinding.

Crest Communications (down 9.37% to Rs 67.70) and Pentamedia Graphics (down 8.19% to Rs 81.80) crossed the 8% lower limit of the circuit breaker.

Creative Eye (Rs 19) and Tips Industries (Rs 90.60) hit the 8% lower limit of the circuit breaker.

Among non-Sensex pharmaceutical stocks, J B Chemicals (up 4.03% to Rs 99.50) gained further ground on reports that the company was in talks with US-based NeoTherapeutics to license two drugs, for which it owns product patents.

Duphar Pharma (up 4.17% to Rs 180) also recovered on fresh buying after a subdued opening.

Others like Abbott Laboratories, Aurobindo Pharma, E.Merck, FDC, Suven Pharma, Torrent Pharma, Panacea Biotech, Wyeth Lederele, Novartis, Parke-Davis, German Remedies, Fulford, Burroughs Wellcome, SmithKline Beecham Pharma, Lupin Laboratories, Hoechst Marion Roussel, Kopran, Cadila Healthcare and Glenmark Pharma also lost ground.

Among side counters, Bombay Dyeing (down 12.71% to Rs 45) crossed the 8% lower limit of the circuit breaker. The company announced yesterday that it will buy back up to 25% of its outstanding shares at a price not exceeding Rs 60 per share against market expectations of Rs 70-90 per share.

Hinduja TMT (down 9.05% to Rs 78.85) and Bharat Forge (down 10.02% to Rs 58.35) also crossed the 8% lower limit of the circuit breaker.

McDowell (Rs 38.55), D-Link India (Rs 232.70), Elbee Services (Rs 118.65), Gati Corporation (Rs 40.30), Khandwala Securities (Rs 56.40), Saw Pipes (Rs 127.10), Kotak Mahindra Finance (Rs 42.30) and Amara Raja Batteries (Rs 87.10) hit the 8% lower limit of the circuit breaker.

On the other hand, Foseco India (Rs 97.80) hit the 8% upper limit of the circuit breaker once again on hopes of an immediate open offer from BP Amoco.

Source: www.capitalmarket.com

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