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Sensex sheds 15 points

The market ended weak on Monday on the commencement of a new settlement on BSE. Selling pressure in New as well as Old Economy stocks pulled down the BSE 30-share Sensitive Index (Sensex) by 14.97 points to 3,290.81.

The NSE S & P CNX Nifty Index shed 5.10 points to settle at 1,060.

While selling was seen almost across the board, tech stocks were the worst hit following a further fall in the US markets on Thursday. The Dow Jones industrial average slumped by 227.18 points to 10,252.68 and the tech-heavy Nasdaq composite index lost 75.95 points to 2,004.16.

The mood in the market remained cautious ahead of the announcement of quarterly results by some leading tech companies (that will come in later this week).

Volumes on the bourses turned out to be extremely poor following limited investor participation on account of heavy rainfall in Mumbai.

Media major Zee Telefilms (down 6.75% to Rs 92.50) lost further ground as selling pressure continued amid concerns over the company’s ability to recover the money it lent to its investment arms to acquire stakes in a couple of media companies. Against loans of Rs 220-crore, the company has been able to recover only Rs 60 crore so far.

Infosys Technologies (down 3.20% to Rs 3,536) lost ground on selling pressure ahead of the announcement of its quarterly results. Infosys is scheduled to announce its Q1 results on Tuesday.

Dr Reddy’s Laboratories (down 3.83% to Rs 1,555) ended weak on profit booking.

Selling was seen in Old Economy pivotals Tata Steel (down 4.77% to Rs 96.75), State Bank of India (down 2.55% to Rs 218.05), ITC (down 1.37% to Rs 747.60) and Reliance Petroleum (down 0.64% to Rs 46.35).

Meanwhile, Telco (up 4.26% to Rs 67.30) recovered on reports that the company’s loss-making car division had been operating above the cash break-even point in the April-June quarter.

Ranbaxy Laboratories (up 3.10% to Rs 482) settled with modest gains after the company announced Q2 results. For the quarter ended 30 June 2001, the homegrown pharmaceuticals major posted a 22.03% rise in net profit to Rs 49.30 crore (Rs 40.40 crore) on sales of Rs 499.30 crore (Rs 423.60 crore).

Nestle (up 1.89% to Rs 540), Bhel (up 1.43% to Rs 169.70) and Hindalco (up 1% to Rs 769.70) also gained ground.

Non-Sensex tech stocks displayed mixed trends.

Counters like Infotech Enterprises, SSI, Sonata Software, HCL Infosystems, Mascot Systems, Rolta India, Aptech, Wipro, Pentasoft Technologies and Polaris Software ended in the red.

Selective buying was seen on counters like Subex Systems, Aztec Software, PSI Data Systems, HCL Technologies, Tata Elxsi, Sierra Optima, Trigyn Technologies and Mastek.

Among telecom stocks, HFCL (up 7.31% to Rs 73.40) bounced back from an intra-day low of Rs 64.60 on renewed buying at lower levels. HFCL topped volumes on BSE with 22.90 lakh shares traded.

Selective buying was seen in media stocks, today being the first day of the settlement on BSE.

While Adlabs Films (Rs 77.15) hit the 8% upper limit of the circuit breaker, counters like Pritish Nandy Communications, Creative Eye, Cinevista Communications, Mukta Arts, Padmalaya Telefilms, Tips Industries and Balaji Telefilms gained ground.

Among banking stocks, Corporation Bank (up 13.23% to Rs 157.50) gained ground after the bank announced that it will allot 2.4 crore shares to Life Insurance Corporation at Rs 196 per share. For the quarter ended 30 June, 2001, the Mangalore-based public sector bank posted a net profit of Rs 78.04 crore (Rs 62.53 crore) on an income of 553.90 crore (Rs 509.69 crore).

Among non-Sensex pharmaceutical stocks, Torrent Pharma (up 19.98% to Rs 138.70) and Sun Pharma (up 9% to Rs 545) gained ground on renewed buying interest.

German Remedies (up 6.39% to Rs 451) also gained ground on reports that Zydus Cadila’s open offer to the shareholders of the company at Rs 650 per share will open on 28 July.

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