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HLL shines in an otherwise subdued market

The market closed weak on Wednesday on heavy selling pressure.

An almost across-the-board selling pressure pulled down the Bombay Stock Exchange (BSE) 30-share Sensitive Index (Sensex) by 33.11 points to 3,301.97.

Barring select heavyweight pivotals, the sentiment for other stocks remained bearish as the sell-off continued in the wake of the ongoing crisis at the Unit Trust of India (UTI). A further fall in the US markets on Tuesday kept tech stocks subdued.

The US markets declined as bad news on the corporate front continued to breed fear. The Dow Jones industrial average tumbled 183.30 points or 1.76% to 10,241.12, as worries that an economic and earnings recovery may take longer than expected sparked a sell-off in Old Economy stocks. The tech-heavy Nasdaq composite index also slipped, dropping 29.32 points or 1.47% to 1,959.24, its lowest close since 17 April 2001.

The National Stock Exchange's S & P CNX Nifty Index shed 8.35 points to settle at 1,064.20.

The BSE Sensex opened in the red with a gap of 28 points at 3,307. It moved in a less that 45-point range, touching a high of 3,338.22 and a low of 3,296.43 before settling at 3,301.97, losing 33.11 points or 0.99% from its previous close.

Turnover on BSE rose to Rs 750.59 crore (Rs 699.02 crore on 24 July 2001) from 4.48 crore shares traded. Of the 1,329 issues traded on BSE, declines outnumbered advances with 913 losers and 292 gainers. 124 issues remained unchanged.

Pivotals stocks

Zee Telefilms (down 16.58% to Rs 76.75) declined further on sustained selling pressure. The market regulator, Securities and Exchange Board of India (Sebi), is probing 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. Sebi investigations had revealed that the Zee group had given Rs 515 crore to entities linked to the Ketan Parekh group between January 2000 and March 2001. Over 30.68 lakh Zee Telefilms shares were traded on BSE.

NIIT (down 8.96% to Rs 181.40) ended weak once again, touching a 66-month low of Rs 178 in intra-day trades on heavy selling pressure following its poor quarterly results. The stock has shed nearly 39% after the announcement of its results last week. For the quarter ended 30 June 2001, the software training major posted a 93.22% fall in net profit to Rs 5.29 crore (Rs 78.02 crore) on an income of Rs 155.57 crore (Rs 204.25 crore). Over 15.54 lakh NIIT shares were traded on BSE.

Satyam Computer slipped from a high of Rs 160.40 to Rs 150.20 before settling at Rs 151.60, down 6.48% from its previous close. Over 30.65 lakh Satyam shares were traded on BSE.

Telco (down 3.48% to Rs 74.80) lost ground, after Tuesday's gains. The company had announced its quarterly results on Tuesday. For the quarter ended 30 June 2001, the company 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). Despite the higher loss for the quarter, the stock had gained nearly 8% on Tuesday on rumours that the company is at an advanced stage of negotiations for hiving off its car project.

ICICI (down 11.03% to Rs 58.10) came off sharply on fresh selling pressure.

M&M (down 6.55% to Rs 73.45) declined, touching a new eight-year low of Rs 73 in intra-day trades. The company has informed that in order to regulate production in response to seasonal market demand and for better inventory management, production at Kandivli tractor unit of company will be closed for three days from 27 July 2001.

Pharmaceutical pivotals Dr Reddy's Laboratories (down 4.84% to Rs 1,585.50), Glaxo (down 3.72% to Rs 276), Ranbaxy Laboratories (down 1.68% to Rs 504) and Cipla (down 2.09% to Rs 1,056.65) ended in the red on profit-booking, after recent gains.

Reliance Petroleum (down 2.81% to Rs 43.25) and Reliance Industries (down 1.21% to Rs 310.55) also contributed to the fall in the Sensex.

Cement pivotals like ACC (down 2.67% to Rs 136.70), L&T (down 2.11% to Rs 206.90) and Gujarat Ambuja Cements (down 1.75% to Rs 177) slipped further on reports of poor off-take of cement in the monsoon season.

Infosys Technologies (down 0.43% to Rs 3,684.55) ended in the red, but recovered from an intra-day low of Rs 3,619 on renewed buying at lower levels. Over 3.92 lakh Infosys shares were traded on BSE.

Meanwhile, Hindustan Lever (up 2.78% to Rs 223.40) managed to buck the weak market trend on selective buying support following its impressive quarterly results. For the quarter ended 30 June 2001, the fast moving consumer goods (FMCG) giant had 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). Although the top line of the company grew at a marginal 1.78% for the quarter, what is attracting investors to the counter is the rise in both - the company's operating margin as well as the market share of its leading brands.

Aditya Birla group pivotals Grasim (up 1.66% to Rs 315.20) and Hindalco (up 1.69% to Rs 783.55) attracted selective buying support.

State Bank of India (up 0.12% to Rs 210.50) ended flat after the bank announced its quarterly results. For the quarter ended 30 June 2001, the country's largest commercial bank posted a 25.6% rise in net profit to Rs 579.78 crore (Rs 461.70 crore) on an income of Rs 8,131.89 crore (Rs 6,727.13 crore).

Tech stocks

Among non-Sensex tech stocks, DSQ Software (Rs 29.35) hit 20% lower limit of the circuit breaker following the BSE's decision to suspend trading in the scrip from 30 July 2001 till further notice. This move follows the company's failure to comply with the listing agreement. Trading in the scrip will also be suspended on NSE from 27 July 2001.

After market hours, for the quarter ended 30 June 2001, the company posted a 61.96% drop in net profit to Rs 9.60 crore (Rs 25.24 crore) on an income of Rs 80.45 crore (Rs 101.52 crore).

Polaris Software (down 19.32% to Rs 132.35) recovered slightly after hitting 20% lower limit of the circuit breaker on sustained selling. The stock has been under pressure 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. The stock has shed nearly 37% in the three sessions after the company announced its quarterly results on Saturday.

SSI (down 19.81% to Rs 152.45) recovered slightly after hitting 20% lower limit of the circuit breaker to touch a new three-year low of Rs 152.10 in intra-day trades. Over 12.16 lakh SSI shares were traded on BSE.

The software education major had been under selling pressure, of late, following a slump in its education business. SSI is involved in higher-end education courses, which have few takers in the current scenario. The company's dismal growth prospects are attributed to the slowdown in the US economy. The stock shed nearly 82% from its recent peak of Rs 827.90 on 23 April 2001.

Another software education major Aptech (down 18.30% to Rs 52.90) also declined on selling pressure. The scrip touched a new 51-month low of Rs 52.30 in intra-day trades.

Aftek Infosys (down 16.97% to Rs 101) ended weak ahead of the announcement of its quarterly results. After market hours, the company announced a 258.52% rise in net profit to Rs 8.65 crore (Rs 2.41 crore) on an income of Rs 15.51 crore (Rs 6.02 crore).

Sonata Software (down 16.55% to Rs 11.85), Sierra Optima (down 15.91% to Rs 39.10), R. S. Software (down 14.37% to Rs 42.90), Pentasoft Technologies (down 10.87% to Rs 47.95), Mphasis BFL (down 10.71% to Rs 150) and Mastek (down 8.16% to Rs 81) lost ground.

Cash group tech stocks like Aztec Software (Rs 56), Mascot Systems (Rs 64.35), Geometric Software (Rs 45), Information Technologies (Rs 38.40) and Subex Systems (Rs 35.60) hit 8% lower limit of the circuit breaker.

Digital Equipment (down 6.61% to Rs 420.05) declined sharply on institutional selling. Alliance Capital was said to have turned an aggressive seller on the Digital counter.

Infotech Enterprises (down 4.44% to Rs 82.80) slipped after the company announced its quarterly results during market hours. For the quarter ended 30 June 2001, the company posted a 124.84% rise in net profit to Rs 6.97 crore (Rs 3.10 crore) on sales of Rs 21.12 crore (Rs 10.69 crore).

Tata Infotech, CMC, Ramco Systems, Rolta India, VisualSoft, Citicorp Securities, PSI Data Systems and HCL Technologies ended in the red.

Hughes Software (up 2.82% to Rs 617.20) and Wipro (up 1.18% to Rs 1,367.75) ended in the positive zone on selective buying support.

Global Tele-Systems (down 5.96% to Rs 97.80) and HFCL (down 9.67% to Rs 55.60) were subdued on sustained selling pressure.

Telecom stocks

Among telecom stocks, optical fibre scrips were dragged further on rumours that the state-owned telecom major Bharat Sanchar Nigam (BSNL) may cancel bids for the supply of optical fibre cables in the wake of their falling prices in the international market.

Sterlite Optical (down 24.87% to Rs 159.95) came off sharply, touching a new low of Rs 156.55 in intra-day trades. Over 17.73 lakh Sterlite Optical shares were traded on BSE.

Aksh Optifibre (Rs 84.55) was frozen at 8% lower limit of the circuit breaker.

Telecom stocks like Shyam Telecom (down 15.75% to Rs 39.85), Goldstone Technologies (down 15.63% to Rs 18.90), Krone Communications (down 15.61% to Rs 82.20) and Surana Telecom (down 8% to Rs 46) declined on selling pressure.

Selling was also seen on other telecom-related counters like Punjab Communications, Vindhya Telelink, Framatome Connectors, Birla Ericsson, Tata Telecom, Mobile Telecom, Usha Beltron, Hughes Tele.com and VSNL.

Media stocks

Among media stocks, Crest Communications (down 15.70% to Rs 44.30), TV 18 (down 10.65% to Rs 55.40), Saregama India (down 10.24% to Rs 103), Pentamedia Graphics (down 10.15% to Rs 61.10) and Sri Adhikari Brothers (down 10.01% to Rs 60.25) declined sharply on selling pressure.

Mukta Arts (Rs 122.15), Balaji Telefilms (Rs 146.40), Cinevista Communications (Rs 34.65), Padmalaya Telefilms (Rs 58.30), Tips Industries (Rs 54), Creative Eye (Rs 14.55), Pritish Nandy Communications (Rs 32.20) and Jain Studios (Rs 30.70) hit 8% lower limit of the circuit breaker.

Other media stocks like Adlabs Films and Mid-Day Multimedia lost ground.

Pharmaceutical stocks

Among non-Sensex pharmaceutical stocks, Neuland Laboratories (Rs 34.15) hit 8% lower limit of the circuit breaker.

Parke-Davis (down 4.90% to Rs 142.80) slipped after the company announced its quarterly results. For the quarter ended 30 June 2001, the MNC pharma major posted a net profit of Rs 3.74 crore (Rs 5.44 crore) on sales of Rs 53.32 crore (Rs 53.28 crore).

Selling continued in other pharmaceutical stocks like Cadila Healthcare, Knoll Pharma, Novartis, Aurobindo Pharma, Burroughs Wellcome, Wockhardt, Kopran, J. B. Chemicals, Pfizer, Hoechst Marion Roussel, Ipca Laboratories, Sun Pharma, Suven Pharma, Panacea Biotech, E.Merck, Rhone Poulenc and Nicholas Piramal.

On the other hand, Fulford (up 0.38% to Rs 118.50) ended in the positive zone after the company posted its quarterly results on Tuesday. For the quarter ended 30 June 2001, the pharma major posted a 81.70% rise in net profit to Rs 2.98 crore (Rs 1.64 crore) on sales of Rs 42.82 crore (Rs 35.38 crore).

Torrent Pharma and German Remedies also ended in the positive zone.

FMCG stocks

Among FMCG stocks, Godfrey Philips (down 10.21% to Rs 321) was subdued with only 55 shares being traded on BSE.

Reckitt Benckiser (down 9.31% to Rs 157.25) declined following the poor quarterly results, which the company announced on Tuesday. For the quarter ended 30 June 2001, the company 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).

Selling was seen in Tata Tea, Bata India, Gillette India, Kodak India, Rayban Sun Optics, Godrej Consumer Products, Britannia Industries, Dabur India, Nirma and Procter & Gamble.

Side counters

Among side counters, Max India (down 12.33% to Rs 55.10), IBP (down 11.02% to Rs 270), BPL (down 10.46% to Rs 40.65), Nalco (down 8.77% to Rs 52) and Aventis CropScience (down 8.50% to Rs 106) lost ground on selling pressure.

Jindal Steel (down 6.89% to Rs 141.15) ended weak ahead of the announcement of its quarterly results. After market hours, for the quarter ended 30 June 2001, the company posted a 7.76% rise in net profit to Rs 26.79 crore (Rs 24.80 crore) on sales of Rs 130.11 crore (Rs 107.13 crore).

Crisil (down 5.83% to Rs 101.70) slipped after the company announced its quarterly results on Monday. 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)

Ashok Leyland (down 5.41% to Rs 52.40) declined on selling pressure after the company announced its quarterly results on Tuesday, after market hours. For the quarter ended 30 June 2001, the commercial vehicles major posted a loss of Rs 9.44 crore (loss of Rs 19.68 crore) on sales of Rs 503.25 crore (Rs 387.07 crore).

Atlas Copco (down 4.39% to Rs 73) ended weak ahead of the announcement of its quarterly results. After market hours, for the quarter ended 30 June 2001, the company posted a net profit of Rs 5.47 crore (Rs 5.50 crore) on sales of Rs 55.50 crore (Rs 34.34 crore).

Amara Raja Batteries (down 2.12% to Rs 66.85) came off from an intra-day high of Rs 72 after the company announced its quarterly results. For the quarter ended 30 June 2001, the automotive batteries major posted a 42.30% rise in net profit to Rs 3.21 crore (Rs 2.26 crore) on sales of Rs 23.30 crore (Rs 19.88 crore).

ABB (down 1.39% to Rs 245.30) ended slightly weak after the company announced its quarterly results on Tuesday. For the quarter ended 30 June 2001, the company posted a 10.77% drop in net profit to Rs 9.68 crore (Rs 10.85 crore) on sales of Rs 230.05 crore (Rs 169.50 crore).

EIH (down 1.29% to Rs 230) ended in the red after the company announced its quarterly results. For the quarter ended 30 June 2001, the hospitality major posted a 27.50% drop in net profit to Rs 11.02 crore (Rs 12.20 crore) on sales of Rs 100.37 crore (Rs 106.55 crore).

Sesa Goa (down 1.07% to Rs 50.85) ended weak despite impressive quarterly performance. For the quarter ended 30 June 2001, the iron ore major posted a 149.43% rise in net profit to Rs 8.15 crore (Rs 3.26 crore) on sales of Rs 54.66 crore (Rs 61.95 crore).

On the other hand, Engineers India, Hero Honda Motors, BPCL, HDFC Bank, India Cements, Bombay Dyeing, HDFC, Tata Power, Gujarat Gas Company, Corporation Bank and Saw Pipes ended in the positive zone.

Source: www.capitalmarket.com

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