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Sensex ends six-session losing streak with 4-point gain

The market closed flat on Tuesday as buying in select heavyweight stocks offset selling in tech and Old Economy stocks.

The Bombay Stock Exchange (BSE) 30-share Sensitive Index (Sensex) snapped its six-session losing streak, settling with a modest gain of 4.10 points at 3,335.08.

The National Stock Exchange's S & P CNX Nifty Index closed 1.90 points higher at 1,072.55.

While the Sensex posted marginal gains, the sentiment remained bearish following the ongoing crisis at the Unit Trust of India (UTI). A fall in the US markets on Monday kept tech stocks subdued.

On Saturday, former UTI chairman P. S. Subramanyam was held by the Central Bureau of Investigation (CBI) on charges of misappropriation of the fund's money to the extent of Rs 32.8 crore in a private placement deal with Cyberspace Infosys.

The BSE Sensex opened in the red with a 4-point gap at 3,326.84. It was subdued in early trades on selling pressure in New as well as Old Economy stocks. However, a recovery in select defensive sector stocks saw the Sensex bouncing back into the positive territory in afternoon trades. Towards the close of the session, the Sensex touched the day's high of 3,340.91. In the end, the Sensex settled at 3,335.08, up 4.10 points over its previous close.

Turnover on BSE rose to Rs 677.02 crore (Rs 7.62 crore on 23 July 2001) from 4.50 crore shares traded. Of the 1,266 issues traded on BSE, declines outnumbered advances with 741 losers and 412 gainers. 113 issues remained unchanged.

Pivotal stocks

Telco (up 8.39% to Rs 77.50) bounced back from an intra-day low of Rs 69.25 even as the company announced a huge quarterly loss. For the quarter ended 30 June 2001, the commercial vehicles major posted a loss of Rs 98.90 crore (loss of Rs 74.34 crore) on sales of Rs 1,422.31 crore (Rs 1,476.61 crore). Over 7.36 lakh Telco shares were traded on BSE.

There have been rumours that the company is at an advanced stage of negotiations for hiving off its car project. Another rumour is that the Tatas have been increasing their stake in group companies through the creeping acquisition route.

Pharmaceutical pivotals like Cipla (up 2.73% to Rs 1,079.20) and Ranbaxy Laboratories (up 1.70% to Rs 512.60) posted gains on defensive buying.

Hindustan Lever (up 0.63% to Rs 217.35) remained flat after posting quarterly results during market hours. For the quarter ended 30 June 2001, the fast moving consumer goods (FMCG) giant posted a 20.92% rise in net profit to Rs 346.73 crore (Rs 286.74 crore) on sales of Rs 2,931.25 crore (Rs 2,879.72 crore).

Other FMCG pivotals like Nestle (up 2.62% to Rs 543.45) and Colgate (up 0.72% to Rs 167.60) also recorded modest gains.

ITC (up 0.04% to Rs 791.40) bounced back from its intra-day low of Rs 779 on renewed buying support at lower levels. For the quarter ended 30 June 2001, the cigarette major had posted a 20.76% rise in net profit to Rs 300.67 crore (Rs 248.97 crore) on sales of Rs 1,047.89 crore (Rs 1,005.99 crore).

Infosys Technologies continued to attract institutional support. The infotech major bounced back from an intra-day low of Rs 3,600 to a high of Rs 3,729, before settling at Rs 3,700.35, up 2.01% over its previous close. Over 3 lakh Infosys shares were traded on BSE.

Reliance Industries moved up from an intra-day low of Rs 309 to Rs 316.40 before settling at Rs 314.34, up 0.45% over its previous close. During the first quarter of the financial year 2001-02, the company's production increased to 2.8 million tonne. This represents a rise of 7% as compared to the production volume of 2.64 million tonne in the first quarter of last year. The company is scheduled to announce its quarterly results on 28 July 2001.

Pivotals like Bhel, MTNL and BSES and ended in the positive zone.

On the other hand, NIIT (down 5.43% to Rs 199.25) sank into the red once again, but recovered from an intra-day low of Rs 190 on selective buying support at lower levels. Over 16.28 lakh NIIT shares were traded on BSE.

The NIIT stock had recovered from an intra-day low of Rs 185 to Rs 210.70 on Monday on renewed buying towards the close of the session amid thin volumes.

The stock has been under pressure after its poor quarterly results, which were declared on Thursday, and has shed over 34% of its value.

Media major Zee Telefilms (down 1.71% to Rs 92) slipped on reports that the Securities and Exchange Board of India (Sebi) is scrutinising the funding source of some of its deals like the $154-million purchase of Star TV's 50% stake in three joint venture companies last year. Over 17.55 lakh Zee shares were traded on BSE.

Satyam Computer recovered from a low of Rs 159.10 to Rs 164.45 before ending at Rs 162.10, down 0.98% from its previous close. Over 21.36 lakh Satyam shares were traded on BSE.

Tata Steel (down 3.03% to Rs 91.25) lost ground on concerns that the US may slap anti-dumping duties on steel imported from India. There were reports last week that the US president George Bush is directly intervening to protect the US steel industry from imports.

Tata Steel announced disappointing quarterly results last week. For the quarter ended 30 June 2001, the country's largest private sector steel maker posted a 80% drop in net profit to Rs 20.53 crore (Rs 101.40 crore) on sales of Rs 1,611.41 crore (Rs 1,728.27 crore).

Pharmaceutical major Dr Reddy's Laboratories (down 1.29% to Rs 1,666.10) ended in the red on profit- booking, after recent gains.

Selling continued in cement pivotals like Gujarat Ambuja Cements (down 1.45% to Rs 180), L & T (down 0.77% to Rs 211.35), ACC (down 0.39% to Rs 140.45) and Grasim (down 0.10% to Rs 310.05).

ICICI, M & M, Bajaj Auto, State Bank of India, Reliance Petroleum, Castrol, HPCL and Hindalco ended in the red.

Tech stocks

Among non-Sensex tech stocks, Polaris Software (Rs 164.05) was frozen at 8% lower limit of the circuit breaker following its lower-than-expected quarterly results. For the quarter ended 30 June 2001, the Chennai-based software major posted a 40.96% rise in net profit to Rs 15.54 crore (Rs 11.03 crore) on an income of Rs 70.06 crore (Rs 51.93 crore). However, the company's net profit fell 15% on a quarter-on-quarter basis. Over 18,200 Polaris shares were traded on BSE.

Fujitsu ICIM (down 12.67% to Rs 50.65), HCL Technologies (down 9.05% to Rs 264.90) and Aftek Infosys (down 8.71% to Rs 120.50) declined on heavy selling pressure.

SSI (down 6.75% to Rs 190.10) slipped further, touching a new three-year low of Rs 184.10 in intra-day trades. Over 12.52 lakh SSI shares were traded on BSE.

The computer education major's stock had been under selling pressure, of late, following a slump in the education business. SSI is involved in higher-end education courses, which have few takers now. The company's dismal growth prospects are attributed to the slowdown in the US economy. Computer education accounted for 54.6% of SSI's revenues (in Q3 March 2001) while the software business contributed 42.6%. The balance 2.8% came from enterprise support business.

Mascot Systems (Rs 69.90) and Aztec Software (Rs 60.85) hit 8% lower limit of the circuit breaker.

Tata Infotech (down 4.61% to Rs 130.40) came off after the company announced its quarterly results on Monday. For the quarter ended 30 June 2001, the company posted a net profit of Rs 5.42 crore (loss of Rs 0.89 crore) on sales of Rs 131.73 crore (Rs 108.83 crore).

PSI Data Systems (down 3.22% to Rs 133.55) ended in the red after the company announced its quarterly results on Monday. For the quarter ended 30 June 2001, the software major posted a net loss of Rs 4.80 crore (net profit Rs 4.34 crore) on an income of Rs 22.48 crore (Rs 20.78 crore). The stock, however, recovered from its intra-day low of Rs 120 on renewed buying support at lower levels.

Selling was seen in other tech stocks like Mastek, Trigyn Technologies, Kale Consultants, Pentasoft Technologies, Subex Systems, R. S. Software, Digital Equipment, Sonata Software, Silverline Technologies, Geometric Software, e-Serve International, Ramco Systems and Hughes Software.

DSQ Software (down 0.14% to Rs 36.65) slipped from an intra-day high of Rs 39.50 on selling pressure at higher levels. The stock had opened firm after the company announced that it had cancelled the acquisition of Fortuna Technologies. Over 10 lakh DSQ Software shares were traded on BSE.

Investigations by the Securities and Exchange Board of India (Sebi) into the acquisition of Fortuna Tech by DSQ revealed that it was not a genuine deal, as the shares obtained were in physical form and not in demat form, as agreed under the deal. Subsequently, Sebi barred DSQ Software from accessing the capital market for one year.

Rolta India (up 5.19% to Rs 49.70) recovered on fresh buying support. The stock had shed 10% on Monday on a volume of a mere 20 shares.

Global Tele-Systems (GTL) (down 4.07% to Rs 104) declined further on selling pressure. The stock had shed over 19% on Monday after the company said that a global slowdown would affect the company's business in the coming quarter. GTL had announced its quarterly results on Friday. For the quarter ended 30 June 2000, the company had posted a 12.88% drop in net profit to Rs 27.08 crore (Rs 31.09 crore) on an income of Rs 133.80 crore (Rs 123.21 crore). The stock has shed 41% from its recent peak of Rs 181.40 on 13 July 2001 following sustained selling pressure.

Telecom stocks

Among telecom stocks, VSNL (down 12.36% to Rs 276.10) slipped on selling pressure after a consortium of Bharti Enterprises and Singapore Telecom announced late on Monday that it had opted out of the race to acquire a strategic stake in the state-run overseas telecommunications carrier. Over 6.18 lakh VSNL shares were traded on BSE.

Sterlite Optical (down 13.93% to Rs 212.60) and Aksh Optifibre (down 7.97% to Rs 91.85) lost ground on rumours that the state-owned telecom giant Bharat Sanchar Nigam (BSNL) may cancel bids for the supply of optical fibre cables following the recent crash in their prices.

Krone Communications (down 12.33% to Rs 97.40) crossed 8% lower limit of the circuit breaker.

Selling was also seen in stocks like Vindhya Telelink, Goldstone Technologies, Tata Telecom, Punjab Communications and Finolex Cables.

Media stocks

Among media stocks, Pentamedia Graphics (up 13.73% to Rs 67.50) posted gains on renewed buying support after the company announced impressive quarterly results on Monday. For the quarter ended 30 June 2001, the media major posted a 35.39% rise in net profit to Rs 41.74 crore (Rs 30.83 crore) on sales of Rs 158.09 crore (Rs 114.49 crore).

On the other hand, Crest Communications (down 9.40% to Rs 52.55) crossed 8% lower limit of the circuit breaker on selling pressure.

Cinevista Communications (Rs 37.65) and Pritish Nandy Communications (Rs 34.95) were frozen at 8% lower limit.

Balaji Telefilms (down 5.52% to Rs 159.10) and Mukta Arts (down 4.97% to Rs 132.75) declined further.

Selling was also seen in other media stocks like Jain Studios, Creative Eye, Saregama India, Tips Industries, Adlabs Films, TV 18 and Sri Adhikari Brothers.

Pharmaceutical stocks

Among non-Sensex pharmaceutical stocks, Fulford (down 4.91% to Rs 118.05) dipped further into the red on selling pressure. Last week, the company came out with a warning that reduction in prices of some of its drugs by the National Pharmaceutical Pricing Authority (NPPA) will severely hit its profitability.

Cadila Healthcare (down 3% to Rs 92) came off from an intra-day high of Rs 96.20 after the company declared its quarterly results on Monday. For the quarter ended 30 June 2001, the pharmaceuticals major posted a 33.88% rise in net profit to Rs 19.17 crore (Rs 14.32 crore) on sales of Rs 133.30 crore (Rs 144.17 crore).

Selling was seen in other pharmaceutical stocks like Novartis, Parke Davis, Torrent Pharma, Panacea Biotech, Aurobindo Pharma, Morepen Laboratories, Ipca Laboratories, Wyeth Lederle, E. Merck, Rhone Poulenc, Knoll Pharma, Buroughs Wellcome, Pfizer, Wockhardt, J. B. Chemicals and Nicholas Piramal.

On the other hand, FDC, Sun Pharma, German Remedies, KDL Biotech, Suven Pharma, Hoechst Marion Roussel, Glenmark Pharma and Kopran ended in the positive zone.

FMCG stocks

Among FMCG stocks, United Breweries (down 9.57% to Rs 85) and Archies Greetings (down 9.23% to Rs 47.20) sank on selling pressure.

Selling was seen on the other FMCG stocks like Cadbury India, Godrej Consumer Healthcare, Kodak India, Procter & Gamble, Gillette India and Britannia Industries.

Reckitt Benckiser (down 0.29% to Rs 173.40) ended flat ahead of the announcement of quarterly results. For the quarter ended 30 June 2001, the FMCG MNC posted a 55.27% drop in net profit to Rs 3.69 crore (Rs 8.25 crore) on sales of Rs 139.93 crore (Rs 146.98 crore).

On the other hand, Godfrey Philips, Rayban Sun Optics, Tata Tea, Dabur India, Bata India and SmithKline Beecham Consumer Healthcare ended in positive territory.

Side counters

Among side counters, Tata Power (down 13.50) declined on reports that the company has a substantial exposure in UTI's US-64 scheme. As per the company's 2000-01 annual report, Tata Power had invested a massive sum of Rs 700 crore in the scheme. However, the company had reportedly sold some units after 31 March 2001 to book a profit of Rs 35 crore.

Bombay Dyeing (down 6.07% to Rs 34.80) lost ground after the company came out with huge quarterly loss, when compared to the same period in the previous year. For the quarter ended 30 June 2001, the company posted a loss of Rs 9.19 crore (loss Rs 5.03 crore) on sales of Rs 220.43 crore (Rs 215.60 crore).

BPL (down 6.58% to Rs 45.40) slipped after its poor quarterly results. For the quarter ended 30 June 2001, the consumer electronics major posted a 46.15% drop in net profit to Rs 10.21 crore (Rs 18.96 crore) on sales of Rs 300.25 crore (Rs 371.68 crore).

Escorts (down 4.84% to Rs 60.90) declined on disappointing results. For the quarter ended 30 June 2001, the tractors major posted a 62.62% drop in net profit to Rs 33.23 crore (Rs 88.90 crore) on sales of Rs 302.43 crore (Rs 377.68 crore).

ICICI Bank (down 5.80% to Rs 125.05) came off from an intra-day high of Rs 130 on profit-booking, after recent gains. The stock had risen 31% from its recent low of Rs 104.85 on 11 July to Rs 137.90 on 20 July 2001 ahead of the announcement of its quarterly results. ICICI Bank posted its Q1 results on Saturday. For the quarter ended 30 June 2001, the private sector banking major posted a 62.56% rise in net profit to Rs 65.25 crore (Rs 40.14 crore) on an income of Rs 595.49 crore (Rs 314.79 crore).

IPCL (down 7.45% to Rs 45.35) declined after announcing disappointing quarterly results on Saturday. For the quarter ended 30 June 2001, the petrochemicals major posted a 64.28% drop in net profit to Rs 12.67 crore (Rs 35.47 crore) on sales of Rs 1,099.20 crore (Rs 1,067.66 crore).

Selling was seen on other side counters like Voltas, Bharat Forge, Carrier Aircon, Essel Packaging, Amara Raja Batteries, Sesa Goa, Punjab Tractors, Mirc Electronics, Adani Exports, Apollo Tyres, IBP, Indian Hotels, Moser Baer, ICI India, TVS Suzuki, ONGC Corp, Bharat Electronics, Wartsila India, Videocon International and Trent.

On the other hand, Asian Paints (up 1.65% to Rs 249.90) remained steady after the company posted its Q1 results on Monday. For the quarter ended 30 June 2001, the paints major posted a 14.39% rise in net profit to Rs 21.22 crore (Rs 18.55 crore) on sales of Rs 273.81 crore (Rs 249.59 crore).

Saw Pipes (up 12.86% to Rs 66.70) and Shree Rama Multitech (up 10.92% to Rs 36.05) posted gains on renewed buying support.

Crisil (up 2.76% to Rs 108) was steady ahead of the announcement of its quarterly results. After market hours, for the quarter ended 30 June 2001, the credit rating major posted a 10.12% rise in net profit to Rs 2.41 crore (Rs 2.19 crore) on an income of Rs 12.78 crore (Rs 10.36 crore)

Buying was seen in Alfa Laval, Syngenta India, Hero Honda Motors, Monsanto India, Exide Industries, Esab India, United Phosphorus, Indogulf Corp and Philips India.

Source: www.capitalmarket.com

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