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Market closes flat in lacklustre trading

The market settled flat once again on Thursday after another lacklustre trading session as selling pressure continued ahead of the 2 July 2001 deadline banning carry-forward trading.

After moving in a less than 42-point range, the Bombay Stock Exchange (BSE) 30-share Sensitive Index (Sensex) settled with a loss of 0.41 point at 3,405.64.

While Old Economy stocks slipped, tech stocks moved up on fresh buying after US stocks gained ground on Wednesday as hopes of an economic turnaround overcame the latest round of bad news on the corporate profit front. The Nasdaq composite index rose further on Wednesday and closed 38.58 points higher at 2,031.24.

The BSE Sensex remained range-bound for the entire session. It opened in the positive zone with a gap of 2 points at 3,408.28. During the session, it touched a high of 3,427.75 and a low of 3,385.87. In the end, the Sensex settled almost flat at 3,406.05, losing 0.41 point from its previous close.

The National Stock Exchange's S & P CNX Nifty Index also shed 2.40 points to settle at 1,095.20.

Turnover on BSE dropped to Rs 944.42 crore (Rs 1,070.78 crore) from 6.14 crore shares traded. Of the 1,405 issues traded, declines outnumbered advances with 814 losers and 456 gainers. 135 issues remained unchanged.

Pivotal stocks

Pivotals displayed mixed trends.

Among Old Economy stocks, automobile pivotals like Telco (down 2.88% to Rs 64), M & M (down 3% to Rs 98.75) and Bajaj Auto (down 0.79% to Rs 263.40) declined on profit-booking.

Steel major Tata Steel (down 2.99% to Rs 120.05) came off on unwinding by speculators.

Profit-booking was also seen in heavyweights like Reliance Industries (down 0.94% to Rs 341.35), Hindustan Lever (down 0.12% to Rs 206) and Reliance Petroleum (down 0.10% to Rs 48.50).

Other pivotals like BSES (down 1.43% to Rs 197.15), Castrol (down 0.55% to Rs 226.25), Hindalco (down 0.48% to Rs 826.05) and ICICI (down 0.14% to Rs 69.95) settled in the red.

Meanwhile, tech pivotals posted gains. NIIT moved up from an intra-day low of Rs 333 to Rs 363 before settling at Rs 361, gaining 4.08% over its previous close, and 9% from the day's low.

Infosys Technologies rose from Rs 3,340.10 to Rs 3,452.90 before settling at Rs 3,405.35, gaining 1.33% over its previous close.

After a subdued start, media major Zee Telefims bounced back from a low of Rs 103.70 to Rs 109.35 before settling at Rs 108.10, rising by 1.74% over its last close.

State Bank of India (up 0.84% to Rs 227.65) came off from an intra-day high of Rs 230 on profit-booking after it announced its FY 2001 results. For the year ended 31 March 2001, the banking giant posted a net profit of Rs 1,604.25 crore (Rs 2,051.55 crore) on an income of Rs 30,021.19 crore (Rs 25,770.25 crore).

Fast moving consumer goods (FMCG) pivotals Nestle (up 1.46% to Rs 539), ITC (up 0.82% to Rs 784.75) and Colgate (up 0.71% to Rs 162.90) also attracted selective buying support.

Tech stocks

Among non-Sensex tech stocks, computer training major Aptech crossed 8% upper limit of the circuit breaker in intra-day trades to touch a high of Rs 95.80. Selling at higher levels resulted in the stock settling at Rs 92, yet gaining 7.04% over its previous close. Over 11 lakh Aptech shares were traded on BSE. Earlier this month, the company had announced the de-merger of its education business and the merger of another group company, Hexaware Technologies, with it.

Buying was also seen in other tech stocks like Subex Systems, PSI Data Systems, Mphasis BFL, Pentasoft Technologies and Wipro.

On the other hand, VisualSoft India (down 5.48% to Rs 100) recovered after touching its new 52-week low of Rs 97.35.

Software training major SSI came off from Rs 322 to touch a new 52-week low of Rs 287.20, but recovered later to settle at Rs 296.05, shedding 4.87% from its previous close. The stock has lost nearly 45% of its value since the beginning of this month.

Selling was seen in stocks like Aftek Infosys, DSQ Software, HCL Technologies, Mascon Global, Aztec Software, Trigyn Technologies, Geometric Software, Infotech Enterprises, R. S. Software, Fujitsu ICIM, Sonata Software, Mascot Systems, Rolta India, Kale Consultants, Silverline Technologies, Ramco Systems and Mastek.

Telcom stocks

Global Tele-Systems (down 5.66% to Rs 149.30) and HFCL (down 5.24% to Rs 89.50) slipped further on unwinding of outstanding positions by speculators. Both these stocks have declined due to the unwinding that has been taking place since the last few weeks. Players informed that with huge outstanding positions yet to be squared off, these stocks may lose further ground in the coming days.

Optical fibre makers like Sterlite Optical (down 2.31% to Rs 349) and Aksh Optifibre (down 1.76% to Rs 137) declined on profit-booking.

Among other telecom stocks, Shyam Telecom (down 9.23% to Rs 60) crossed 8% lower limit of the circuit breaker.

Selling was also seen in Mobile Telecom, Goldstone Technologies, Punjab Communications, Krone Communications, Birla Ericsson, Surana Telecom, VSNL, ITI and Usha Beltron.

On the other hand, stocks like Tata Telecom, Nelco and Finolex Cables managed to settle in the positive zone.

Media stocks

Media stocks, which have been in the limelight of late, slipped on profit- booking. Vision Tech, Tips Industries, Mukta Arts, Jain Studios, Pritish Nandy Communications, Sri Adhikari Brothers, Crest Communications, Pentamedia Graphics, Cinevista Communications, TV 18, Padmalaya Telefilms, Saregama India, Creative Eye, Adlabs Films, Balaji Telefilms and Mid-Day Multimedia settled in the negative zone.

Pharmaceutical stocks

Among non-Sensex pharmaceutical stocks, J. B. Chemicals (down 7.27% to Rs 104) lost ground after BSE imposed a 25% special margin on the scrip.

Selling was seen in other pharmaceutical stocks like Lupin Laboratories, SmithKline Beecham Pharma, Suven Pharma, E.Merck, KDL Biotech, Novartis, Torrent Pharma, Rhone Poulenc, Ipca Laboratories, Astra-IDL, Alembic, Burroughs Wellcome, Pfizer, Fulford, German Remedies and Aurobindo Pharma.

FMCG stocks

FMCG stocks like United Breweries, Bausch & Lomb, Gillette India, Bata India, Reckitt Benckiser, Kodak India, Britannia Industries and Archies Greetings also declined.

Fresh buying was seen in stocks like Procter & Gamble, Tata Tea, Cadbury India, SmithKline Beecham Consumer Healthcare, VST Industries and Nirma.

Side counters

Among the side counters, Bayer India (Rs 606.95) and D-Link India (Rs 223.55) hit 8% upper limit of the circuit breaker.

EIH (up 6.07% to Rs 247.40) spurted towards the close of the session on fresh buying support.

Buying was also seen in Modi Rubber, Moser Baer, Esab India, Aventis CropScience, Elbee Services, Asian Paints, Indian Hotels, Essel Packaging, Voltas, ABB and TVS Suzuki.

On the other hand, Bayer Diagnostics (Rs 259), Triumph International Finance (Rs 26.70) and Saw Pipes (Rs 109.80) hit 8% lower limit of the circuit breaker.

Tata Power (down 3.52% to Rs 131.75) remained subdued after the company announced its FY 2001 results on Wednesday. For the year ended 31 March 2001, the power major posted a net profit of Rs 389.60 crore (Rs 232.03 crore) on sales of Rs 3,360.78 crore (Rs 1,389.60 crore).

Escorts (down 0.64% to Rs 70) settled flat after the company announced its FY 2001 results on Wednesday. For the year ended 31 March 2001, the tractors major posted a net profit of Rs 107.39 crore (Rs 112.35 crore) on sales of Rs 1,578.84 crore (Rs 1,570.01 crore).

Selling was also seen in Hinduja TMT, ONGC, Jindal Steel, Mirc Electronics, MRF, Ashok Leyland, Bombay Dyeing, Sesa Goa, Syngenta India, Atlas Copco, BPL, Amara Raja Batteries, Raymond, Bharat Forge, Vikas WSP, Thermax, Titan Industries, ICI India, Philips India, IPCL, Shree Rama Multitech.

Source: www.capitalmarket.com

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