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Sensex sheds 43 points

The market declined on Thursday on sustained selling pressure following the ongoing crisis at the Unit Trust of India (UTI).

Offloading in heavyweight pivotals pulled down the Bombay Stock Exchange (BSE) 30-share Sensitive Index (Sensex) by 42.94 points to 3,259.03.

The National Stock Exchange's S & P CNX Nifty Index shed 10.80 points to settle at 1,053.40.

While the Sensex slipped further, the overall trend remained mixed. Frontline tech stocks lost ground, but bargain hunting was seen in a number of second-rung tech and telecom stocks, which had been hammered mercilessly in the last few weeks.

The BSE Sensex opened in the red with a gap of 3.33 points at 3,298.64. It bounced back into the positive zone and touched the day's high of 3,318.60 in opening trades. However, selling pressure in heavyweight pivotals pulled down the Sensex into the red once again in late-morning trades. Towards the close of the trading session, it touched the day's low of 3,254.28. In the end, the Sensex closed at 3,259.03, down 42.94 points or 1.30% from its previous close. The Sensex had shed 33 points on Wednesday.

Turnover on BSE rose further to Rs 861.36 crore (Rs 750.59 crore on 25 July 2001) from 4.87 crore shares traded. Of the 1,336 issues traded, declines outnumbered advances with 744 losers and 453 gainers. 139 issues remained unchanged.

Pivotal stocks

Pharmaceuticals major Glaxo (down 3.95% to Rs 265.10) moved downward on sustained selling pressure. The stock touched a new four-year low of Rs 263.10 in intra-day trades.

Glaxo has been losing ground in the absence of any fresh development on the Drug Price Control Order (DPCO) front. Earlier, there were reports that the government was considering slashing the number of drugs under DPCO and that Glaxo was expected to be one of the major beneficiaries. Also, there were rumours that an important Glaxo drug, Zinetac, would be moved out of DPCO.

Zee Telefilms (down 3.32% to Rs 74.20) declined 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 Zee had given Rs 515 crore to entities linked to the Ketan Parekh group between January 2000 and March 2001.

Satyam Computer (down 3.17% to Rs 146.80) ended in the red, but recovered from its three-year low of Rs 145 that it touched in intra-day trades. Over 37.84 lakh Satyam Computer shares were traded on BSE.

Tech heavyweight Infosys Technologies recovered from an intra-day low of Rs 3,562.20 to Rs 3,713 before settling at Rs 3,653.25, down 0.85% from its previous close. Over 4.73 lakh Infosys shares were traded on BSE.

Hindustan Lever (down 2.24% to Rs 218.40) slipped on profit-booking, after recent gains. The fast moving consumer goods (FMCG) heavyweight had gained nearly 3% on Wednesday even while the overall market remained subdued. For the quarter ended 30 June 2001, the company had recorded 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).

Cigarette heavyweight ITC (down 1.23% to Rs 779.25) also declined on selling pressure.

Reliance Industries (RIL) (down 2.01% to Rs 304.30) sank further into the red following selling pressure on fears of large-scale institutional offloading on the counter in the coming days. The RIL counter has witnessed selling activity over the last few sessions following reports that UTI has decided to bring down the equity exposure of its controversial US-64 scheme. UTI is planning to cut the scheme's equity component by 25%. RIL has been among one of the top stocks in the portfolio of US-64. It had accounted for 14.47% of the total assets of US-64 end of April 2001.

State Bank of India (down 1.83% to Rs 206.65) came off from an intra-day high of Rs 214.70 on offloading at higher levels. The company had announced its quarterly results on Wednesday. For the quarter ended 30 June 2001, the country's largest commercial bank posted a 20.88% 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).

Aditya Birla group pivotals like Grasim (down 2.94% to Rs 307) and Hindalco (down 1.47% to Rs 772) lost ground on selling pressure, after posting gains on Wednesday.

Tata Steel (down 0.99% to Rs 89.90) and Telco (down 0.27% to Rs 74.60) edged lower.

Bhel (down 0.59% to Rs 171) ended flat ahead of the announcement of its quarterly results. After market hours, for the quarter ended 30 June 2001, the state-run electrical equipment major posted a loss of Rs 125.18 crore (net profit Rs 2.02 crore) on sales of Rs 888.06 crore (Rs 854.17 crore).

Others like M & M (down 1.97% to Rs 72), Castrol (down 0.95% to Rs 213.50), and HPCL (down 0.24% to Rs 147.50) ended in the red.

Meanwhile, ICICI (up 2.74% to Rs 59.95) erased a small part of its Wednesday's losses on renewed buying support at lower levels. The stock fell slightly over 11% on rumours that UTI-like raids were likely to be carried out on ICICI offices.

Cipla (up 2.70% to Rs 1,092.10) remained firm ahead of the announcement of its quarterly results. After market hours, for the quarter ended 30 June 2001, the pharmaceutical major announced a 14.46% rise in net profit to Rs 44.40 crore (Rs 38.79 crore) on sales of Rs 297.89 crore (Rs 241.79 crore)

Other pharmaceuticals pivotals like Ranbaxy Laboratories (up 2.90% to Rs 516.75) and Dr Reddy's Laboratories (up 1.33% to Rs 1,606.60) posted gains on selective buying support.

NIIT (up 1.43% to Rs 184) recovered from its new 66-month low of Rs 172 that it touched in intra-day trades. Over 14.44 lakh NIIT shares were traded on BSE.

ACC (up 0.33% to Rs 137.45), BSES (up 0.26% to Rs 194.90) and Colgate (up 0.22% to Rs 160.10) ended in the positive zone.

Tech stocks

Among non-Sensex tech stocks, Aftek Infosys (up 6.88% to Rs 112.60) gained ground, but slipped from its day's high of Rs 126.40. The company had declared impressive quarterly results on Wednesday. For the quarter ended 30 June 2001, it posted a 252.52% 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).

Infotech Enterprises (up 6.28% to Rs 88) also gained ground after the company announced its quarterly results on Wednesday. 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).

Fujitsu ICIM (up 13.03% to Rs 47.70) rose on bargain hunting at lower levels.

Polaris Software (up 4.95% to Rs 138.95) bounced back from its lower levels on bargain hunting. The stock has shed 37% in three sessions after the company announced its quarterly results last Saturday. For the quarter ended 30 June 2001, the software major had 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.

Digital Equipment (up 4.23% to Rs 437.80) bounced back from an intra-day low of Rs 398.10 on bargain hunting at lower levels. Alliance Capital, which was a persistent seller on the counter since the last few sessions, was said to have turned a buyer. Over 29.14 lakh Digital shares were traded on BSE.

SSI (up 3.02% to Rs 157.05) bounced back from its new three-year low of Rs 142.20 on bargain hunting. Over 18.14 lakh SSI shares were traded on BSE.

Aptech (up 4.73% to Rs 55.40) also gained ground.

Second-rung software stocks like CMC, Orient Information, Onward Technologies, Ramco Systems, Kale Consultants, Mastek, Subex Systems and Geometric Software attracted selective buying support.

On the other hand, Tata Elxsi (down 9.27% to Rs 48.45) and R. S. Software (down 13.87% to Rs 36.95) ended weak on fresh selling pressure.

Frontline software stocks like HCL Technologies (down 3.70% to Rs 254), Wipro (down 1.06% to Rs 1,353.30) and Hughes Software (down 0.49% to Rs 614.15) ended in the red.

Aztec Software (Rs 51.55) hit 8% lower limit of the circuit breaker.

DSQ Software (down 1.19% to Rs 29) recovered from an intra-day low of Rs 23.50 on renewed buying , but came off from the day's high of Rs 32.50. The stock has been under selling pressure following the NSE's decision to suspend trading in the scrip from 27 July 2001. This move follows the company's failure to comply with the listing agreement. Trading in the scrip will also be suspended on BSE from 30 July 2001.

After market hours on Wednesday, DSQ Software had 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) for the quarter ended 30 June 2001.

Selling was seen in other tech stocks like Silverline Technologies, Information Technologies, Pentasoft Technologies, Rolta India, Geometric Software, VisualSoft, Trigyn Technologies, Mphasis BFL, Mascot Systems, PSI Data Systems and e-Serve International.

Telecom stocks

Among telecom stocks, Sterlite Optical (up 12.41% to Rs 179.80) erased some of Wednesday's losses on bargain hunting at lower levels. The stock had shed nearly 25% on Wednesday on rumours that the state-owned telecom major Bharat Sanchar Nigam (BSNL) may cancel bids for optical fibre cables in the wake of falling cable prices in the international market. Enam Securities was believed to have bought the Sterlite Optical stock.

Global Tele-Systems (GTL) (up 1.97% to Rs 98.50) bounced back from an intra-day low of Rs 93.40 on renewed buying at lower levels. Over 24.16 lakh GTL shares were traded on BSE.

Buying was seen in stocks like Krone Communications, Tata Telecom, Surana Telecom, Shyam Telecom, Usha Beltron and Punjab Communications.

On the other hand, Vindhya Telelink, Framatome Connectors, Mobile Telecom, Finolex Cables, Aksh Optifibre, Birla Ericsson, Nelco, Goldstone Technologies and VSNL ended in the red.

HFCL (down 1.52% to Rs 54.95) slipped from an intra-day high of Rs 57.40 on profit-booking at higher levels. Over 12.67 lakh HFCL shares were traded on BSE.

Media stocks

Among media stocks, Crest Communications (up 9.48% to Rs 48.50) crossed 8% upper limit of the circuit breaker on fresh buying support.

Tips Industries (Rs 58.30) hit 8% upper limit.

Balaji Telefilms (up 3.93% to Rs 152.15) and Mukta Arts (up 0.49% to Rs 122.75) gained ground on renewed buying support.

On the other hand, Pentamedia Graphics (down 8.43% to Rs 55.95) declined on sustained selling pressure. The media major has shed nearly 19% from a high of Rs 68 that it touched on 24 July 2001, after announcing impressive quarterly results. For the quarter ended 30 June 2001, the media major had 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). Over 12.50 lakh Pentamedia shares were traded on BSE.

Others like Jain Studios, Sri Adhikari Brothers, Saregama India, Cinevista Communications, Adlabs Films, Mid-Day Multimedia and Padmalaya Telefilms ended in the red.

Pharmaceutical stocks

Among non-Sensex pharmaceutical stocks, SmithKline Beecham Pharma (down 3.67% to Rs 134) slipped after the company announced disappointing quarterly results on Wednesday. For the quarter ended 30 June 2001, the pharma major had posted a 71.29% drop in net profit to Rs 2.45 crore (Rs 8.55 crore) on sales of Rs 65.19 crore (Rs 91.99 crore).

Nicholas Piramal (down 4.86% to Rs 244.80) ended weak after the company announced its quarterly results. For the quarter ended 30 June 2001, the pharma major posted a 10.85% rise in net profit to Rs 16.85 crore (Rs 15.20 crore) on sales of Rs 129.60 crore (Rs 123.23 crore).

Rhone Poulenc (down 1.82% to Rs 404.40) also lost ground after its quarterly results. For the quarter ended 30 June 2001, the company posted a 18.17% rise in net profit to Rs 8.39 crore (Rs 7.10 crore) on sales of Rs 71.30 crore (Rs 70.01 crore).

Parke-Davis (down 0.91% to Rs 141.50) came off from an intra-day high of Rs 145. The company had announced its quarterly results on Wednesday. For the quarter ended 30 June 2001, the MNC pharma major had posted a net profit of Rs 3.74 crore (Rs 5.44 crore) on sales of Rs 53.32 crore (Rs 53.28 crore).

Wockhardt, Aurobindo Pharma, Pfizer, E. Merck, Panacea Biotech, Hoechst Marion Roussel, German Remedies, , Ipca Laboratories, Burroughs Wellcome, Morepen Laboratories and J. B. Chemicals ended in the red.

On the other hand, selective buying was seen in stocks like Novartis, Knoll Pharma, Torrent Pharma, Suven Pharma, Kopran, Cadila Healthcare, Sun Pharma, Glenmark Pharma and Fulford.

FMCG stocks

Among FMCG stocks, United Breweries (up 14.42% to Rs 100) gained ground on renewed buying support.

Rayban Sun Optics (up 3.07% to Rs 23.50) was steady ahead of the announcement of its quarterly results.

Selective buying was seen in stocks like SmithKline Beecham Consumer Healthcare, Cadbury India, Tata Tea, Gillette India, Kodak India, Procter & Gamble and Nirma.

On the other hand, Bata India, Godrej Consumer Healthcare, Archies Greetings, Reckitt Benckiser, Dabur India, Britannia Industries and VST Industries declined.

Banking stocks

Among banking stocks, Bank of Baroda (down 1.79% to Rs 41.10) came off from a high of Rs 43.05 on selling pressure after the company announced its quarterly results. For the quarter ended 30 June 2001, the public sector banking major posted a 20.31% rise in net profit to Rs 182.61 crore (Rs 151.78 crore) on an income of Rs 1,677.36 crore (Rs 1,554 crore).

Other banking stocks like Federal Bank, Bank of India, IndusInd Bank, Global Trust Bank, Corporation Bank, HDFC Bank, Bank of Punjab and UTI Bank ended in the red.

Side counters

Among side counters, Cummins (down 7.44% to Rs 44.80) declined ahead of the announcement of its quarterly results. After market hours, for the quarter ended 30 June 2001, the engineering major posted a 19.35% drop in net profit to Rs 16.35 crore (Rs 20.27 crore) on sales of Rs 190.17 crore (Rs 198.92 crore).

Philips India (down 4.16% to Rs 59.85) ended weak on poor quarterly results. For the quarter ended 30 June 2001, the consumer electronics major posted a loss of Rs 8.73 crore (loss of Rs 3.49 crore) on sales of Rs 360.96 crore (Rs 364.05 crore).

Mirc Electronics (down 2.94% to Rs 169.85) lost ground ahead of the announcement of its quarterly results. After market hours, for the quarter ended 30 June 2001, the consumer electronics major announced a 42.29% drop in net profit to Rs 2.47 crore (Rs 4.28 crore) on sales of Rs 124.83 crore (Rs 127.12 crore).

Monsanto India (down 2.57% to Rs 900) slipped after the company announced its quarterly results on Wednesday. For the quarter ended 30 June 2001, the company posted a 14.12% drop in net profit to Rs 10.46 crore (Rs 12.18 crore) on sales of Rs 99.82 crore (Rs 84.96 crore).

Thomas Cook (down 2.39% to Rs 268.05) slipped ahead of the announcement of its quarterly results. After market hours, for the quarter ended 30 June 2001, the company announced a 15.71% drop in net profit to Rs 2.45 crore (Rs 2.91 crore) on sales of Rs 23.23 crore (Rs 20.79 crore).

Hinduja TMT (down 2.19% to Rs 58) lost ground after the company announced its quarterly results. For the quarter ended 30 June 2001, the company posted a net profit of Rs 10.20 crore (Rs 16.09 crore) on an income of Rs 14.68 crore (Rs 21.79 crore).

On the other hand, Jindal Steel (up 5.06% to Rs 148.50) posted gains after the company announced its quarterly results on Wednesday. For the quarter ended 30 June 2001, the steel major had recorded a 7.76% rise in net profit to Rs 26.97 crore (Rs 24.86 crore) on sales of Rs 130.10 crore (Rs 107.13 crore).

EIH (up 2.20% to Rs 235) moved up after the company announced its quarterly results on Wednesday. For the quarter ended 30 June 2001, the hospitality major had posted a 27.50% drop in net profit to Rs 11.02 crore (Rs 15.20 crore) on sales of Rs 100.37 crore (Rs 106.55 crore).

Kochi Refineries (up 2.74% to Rs 33.75) rose after the company announced its quarterly results on Wednesday. For the quarter ended 30 June 2001, the company had posted a 211.25% rise in net profit to Rs 24.90 crore (Rs 8 crore) on sales of Rs 1,031.45 crore (Rs 1,571.30 crore).

G. E. Shipping (up 2.43% to Rs 27.45) gained ground after the company announced impressive quarterly results. For the quarter ended 30 June 2001, the shipping major posted a 26.16% rise in net profit to Rs 61.70 crore (Rs 48.52 crore) on sales of Rs 342.83 crore (Rs 268.25 crore).

Gujarat Gas (up 1.69% to Rs 612.10) ended firm ahead of the announcement of its quarterly results. After market hours, for the quarter ended 30 June 2001, the company posted a 4.94% rise in net profit to Rs 16.13 crore (Rs 15.37 crore) on sales of Rs 88.84 crore (Rs 69.73 crore).

Source: www.capitalmarket.com

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