Search the Internet          Tips  Sites: Finance, Investment

Pivotals pull down Sensex by 7.50 points

The market closed flat on Friday, displaying mixed trends.

After moving in the positive zone for the better part of the trading session, the Bombay Stock Exchange (BSE) Sensitive Index (Sensex) ended with a minor loss of 7.50 points at 3,251.53.

The National Stock Exchange S&P CNX Nifty index shed 1.70 points to 1,051.70.

While buying support was seen in select tech stocks following the overnight gains on tech-heavy Nasdaq, selling pressure was seen in select pharmaceutical and other Old Economy stocks.

The sentiment remained bearish on account of the ongoing investigations into a number of stock market-related scams and disappointing JQ 2001 results of some companies.

Meanwhile, a special court in Mumbai has rejected the bail plea of former Unit Trust of India (UTI) chairman P. S. Subramanyam. Market players have turned nervous as after the UTI, other financial institutions like Life Insurance Corporation of India (LIC), General Insurance Corporation (GIC) and SBI Mutual Funds are being probed for lapses in their investment decisions.

Reflecting the mood, the BSE Sensex opened flat at 3,260.04. It sank into the red in opening trades to touch the day's low of 3,241.66. However, it recovered from the lower levels and remained firm for the better part of the session. After touching the day's high of 3,278.85 in afternoon trades, the Sensex lost ground once again. In the end, the Sensex settled at 3,251.53, down 7.50 points from its previous close.

Turnover on BSE rose further to Rs 824.14 crore (Rs 681.36 crore on 26 July 2001) from 5.33 crore shares traded. Of the 1,439 issues traded, advances outnumbered declines with 687 gainers and 589 losers. 163 issues remained unchanged.

Pivotal stocks

Bhel (down 11.25% to Rs 151.10) declined after the company posted disappointing quarterly results on Thursday, after market hours. The stock, however, recovered from an intra-day low of Rs 145. For the quarter ended 30 June 2001, the state-run electrical equipment maker had 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). The company said that its Q1 performance was affected due to change in the product mix as compared to Q1 of the previous year. It was also affected due to increase in staff cost and the company's voluntary retirement scheme.

Telco (down 6.77% to Rs 69.55) came off sharply on fresh selling pressure. The stock had risen over 4% in the last four sessions even after the company announced disappointing quarterly results on Tuesday. For the quarter ended 30 June 2001, the commercial vehicles major had 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).

Glaxo (down 4.43% to Rs 253.35) slipped further to touch a new four-year low of Rs 252.20. The company 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.

Cipla (down 2.33% to Rs 1,066.65) declined following a lower-than-expected quarterly performance. For the quarter ended 30 June 2001, the pharma major posted 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).

Fast moving consumer goods (FMCG) heavyweights ITC (down 3.10% to Rs 755.55) and Hindustan Lever (down 0.37% to Rs 217.65) also slipped on institutional selling pressure.

Tech heavyweight Infosys Technologies (down 0.88% to Rs 3,621.20) ended in the red on profit-booking by institutions, after recent gains. UTI was believed to have sold some more Infosys stock.

Cement pivotals like Grasim (down 3.36% to Rs 302), Gujarat Ambuja Cements (down 2.16% to Rs 171.80) and ACC (down 0.04% to Rs 137.40) ended in the red.

Selling was seen in pivotals like Hindalco (down 0.69% to Rs 760), Castrol (down 0.30% to Rs 212.95) and Bajaj Auto (down 0.17% to Rs 228.65).

Meanwhile, Satyam Computer (up 6.51% to Rs 156.35) and NIIT (up 3.78% to Rs 190.75) gained ground on bargain hunting at lower levels after the overnight gains on Nasdaq.

ICICI (up 2.17% to Rs 61.25) rose ahead of the announcement of its Q1 results. After market hours, for the quarter ended 30 June 2001, the term-lending financial institution posted a 13.27% rise in net profit to Rs 325.64 crore (Rs 287.47 crore) on an income of Rs 2,451.90 crore (Rs 2,153.80 crore).

Reliance Petroleum (RPL) (up 2.38% to Rs 43.10) posted gains on renewed buying support at lower levels. RPL, India's largest private sector refinery, had said on Thursday that its refinery operated at an average rate of 108% in the April-June 2001 quarter. The refinery, which has a capacity of 5,40,000 bpd, achieved a rate of 110% in June 2001 alone. The company also announced that it had exported 1.4 million tonne of petroleum products worth more than $305 million in the said quarter.

Colgate (up 0.50% to Rs 160.90) ended flat, slipping from a high of Rs 164 after the company declared its quarterly results. For the quarter ended 30 June 2001, the oral care major posted a 17.9% rise in net profit to Rs 15.80 crore (Rs 13.40 crore) on sales of Rs 306.60 crore (Rs 287.50) crore).

Reliance Industries (up 0.69% to Rs 306.40) ended steady, after recovering from an intra-day low of Rs 299.95.

State Bank of India (up 1.43% to Rs 20.60), HPCL (up 1.39% to Rs 149.55) and MTNL (up 0.29% to Rs 119.35) ended in the positive zone.

Media major Zee Telefilms (up 0.20% to Rs 74.35) also closed flat, coming off from an intra-day high of Rs 79.25. Over 26 lakh Zee Telefilms shares were traded on BSE.

Tech stocks

Among non-Sensex tech stocks, DSQ Software (Rs 34.20) was frozen at 20% upper limit of the circuit breaker after the BSE said on Friday morning that it has put on hold the proposed suspension in trading of shares of the software company. This move follows a ruling by a Chennai court restraining BSE from suspending the listing of DSQ's shares. Earlier, BSE had announced that trading in the shares will be suspended from 30 July 2001 for non-compliance with listing rules. Close to 10 lakh DSQ Software shares were traded on BSE.

SSI (up 18.91% to Rs 186.75) bounced back on bargain hunting at lower levels. The stock had touched a three-year low of Rs 142.20 on Thursday, shedding nearly 83% from its peak of Rs 827.90 on 23 April 2001.

Fujitsu ICIM (up 18.76% to Rs 56.65) and VisualSoft (up 13.61% to Rs 88.50) gained ground on sustained buying support.

Infotech Enterprises (up 12.93% to Rs 99.55) rose further, riding on the impressive quarterly results that the company announced on Wednesday. For the quarter ended 30 June 2001, it 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).

Mascot Systems (Rs 68) hit 8% upper limit of the circuit breaker towards the close of the session following its impressive quarterly results. For the quarter ended 30 June 2001, the company posted a 102.16% rise in net profit to Rs 13.08 crore (Rs 6.47 crore) on sales of Rs 112.77 crore (Rs 67.04 crore).

After hitting 8% lower limit of the circuit breaker in previous two sessions, Aztec Software (Rs 55.65) hit 8% upper limit.

Pentasoft Technologies (up 7.46% to Rs 48.25) ruled firm ahead of the announcement of its quarterly results.

Buying was seen in other tech stocks like Aptech, Tata Infotech, Sonata Software, Information Technologies, CMC, Rolta India, Subex Systems, Kale Consultants, Onward Technologies, Trigyn Technologies, Tata Elxsi, Silverline Technologies, Mastek and R. S. Software.

Polaris Software (down 4.39% to Rs 132.80) and Aftek Infosys (down 4.09% to Rs 108) slipped from their higher levels on profit-booking.

Geometric Software, Ramco Systems, PSI Data Systems, Hughes Software, Digital Equipment, HCL Technologies, Wipro and e-Serve International also ended in the red.

Global Tele-Systems (up 9.14% to Rs 107.50) and HFCL (up 4.46% to Rs 57.40) gained ground on fresh buying support at lower levels.

Telecom stocks

Optical fibre stocks like Sterlite Optical (up 8.54% to Rs 195.15) and Aksh Optifibre (up 7.65% to Rs 88) posted gains on renewed buying support at lower levels. Optical fibre scrips were dragged earlier this week 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.

Surana Telecom (Rs 58.05) hit 20% upper limit of the circuit breaker.

Tata Telecom (up 9.53% to Rs 73) crossed 8% upper limit.

Buying was seen in other telecom stocks like Krone Communications, Mobile Telecom, Shyam Telecom, Nelco, Birla Ericsson, Finolex Cables and Goldstone Technologies.

On the other hand, VSNL (down 2.47% to Rs 264.50) declined from an intra-day high of Rs 277 after the company announced its quarterly results, that were below market expectations. For the quarter ended 30 June 2001, the state-run monopoly overseas telecommunication service provider posted a 4.5% fall in net profit to Rs 365.50 crore (Rs 382.90 crore) on sales of Rs 1,528.30 crore (Rs 1,701.80 crore).

Media stocks

Balaji Telefilms (Rs 164.30) hit 8% upper limit of the circuit breaker on short covering, being the last day of the settlement in the cash section.

Padmalaya Telefilms, Pentamedia Graphics, Sri Adhikari Brothers, Crest Communications, Cinevista Communications, Mukta Arts and TV 18 also gained ground.

On the other hand, Adlabs Films, Saregama India, Vision Tech and Tips Industries ended in the red.

Pharmaceutical stocks

Among non-Sensex pharmaceutical stocks, SmithKline Beecham Pharma (down 4.93% to Rs 127.40) slipped on sustained selling pressure. The company had declared disappointing Q2 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).

Novartis (down 4.06% to Rs 201) fell following its poor quarterly results. For the quarter ended 30 June 2001, the company posted a 9.85% drop in net profit to Rs 9.15 crore (Rs 10.15 crore) on sales of Rs 102.41 crore (Rs 94.13 crore).

Selling was also seen in other pharmaceutical stocks like J. B. Chemicals, Knoll Pharma, KDL Botech, Glenmark Pharma, Wyeth Lederle, Ipca Laboratories, E. Merck, Pfizer, Rhone Poulenc and Pandcea Biotech.

On the other hand, Hoechst Marion Roussel (up 8% to Rs 405) gained ground on renewed buying support.

German Remedies (up 0.27% to Rs 465) ended flat after the company announced its Q1 results. For the quarter ended 30 June 2001, the pharma major posted a 3.42% drop in net profit to Rs 4.16 crore (Rs 4.31 crore) on sales of Rs 43.77 crore (Rs 41.37 crore).

Suven Pharma, Burroughs Wellcome, Fulford, Parke-Davis, Torrent Pharma, Aurobindo Pharma, Morepen Laboratories, Sun Pharma, Nicholas Piramal and Wockhardt posted gains.

FMCG stocks

Among FMCG stocks, Rayban Sun Optics (up 12.39% to Rs 26.30) gained ground despite poor quarterly results. For the quarter ended June 2001, the company posted a net profit of Rs 0.47 crore (Rs 0.50 crore) on sales of Rs 10.07 crore (Rs 17.01 crore).

Godrej Consumer Products (up 7.77% to Rs 44.40) firmed up after the company announced its quarterly results on Thursday. For the quarter ended 30 June 2001, the company posted a net profit of Rs 9.17 crore on sales of Rs 140.38 crore.

SmithKline Consumer Healthcare (up 2.60% to Rs 433.90) rose after the company announced impressive quarterly results. For the quarter ended 30 June 2001, the company posted a 44.91% rise in net profit to Rs 40.30 crore (Rs 27.81 crore) on sales of Rs 219.05 crore (Rs 185.97 crore).

Dabur India (up 1.44% to Rs 59.85) moved up after the company declared its quarterly results on Thursday. For the quarter ended 30 June 2001, it posted a 23.07% rise in net profit to Rs 8.80 crore (Rs 7.15 crore) on sales of Rs 250.50 crore (Rs 249.29 crore).

Tata Tea (up 0.13% to Rs 155.95) ended flat ahead of the announcement of its quarterly results. After market hours, for the quarter ended 30 June, the tea major posted a 61% drop in net profit to Rs 15.23 crore (Rs 38.64 crore) on sales of Rs 192.34 crore (Rs 192.46 crore).

Buying was seen in stocks like Reckitt Benckiser, Bata India, Procter & Gamble, Kodak India and Nirma.

On the other hand, United Brewereis, Archies Greetings, Godfrey Philips, Cadbury India, Britannia Industries and Gillette India ended in the red.

Side counters

Among side counters, Mirc Electronics (up 13.84% to Rs 190) was firm despite poor quarterly results unveiled on Thursday. For the quarter ended 30 June 2001, the consumer electronics major posted 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).

IBP (up 11.31% to Rs 300.10) and Punjab Tractors (up 10.86% to Rs 170) gained ground on institutional buying.

Tata Chemicals (up 7.15% to Rs 38.25) rose after the company announced along with its quarterly results that it will consider a buy-back of shares. For the quarter ended 30 June 2001, the company posted a net profit of Rs 13.19 crore (loss of Rs 3.76 crore) on sales of Rs 291.43 crore (Rs 326.55 crore).

Amara Raja Batteries (up 4.48% to Rs 70) ruled firm on reports that the automotive batteries maker will be supplying its 'Amaron' batteries to Telco for its Light Commercial Vehicles (LVC) segment.

Colour Chem (up 3.58% to Rs 43.35) firmed up on fresh buying support. The company had announced its quarterly results on Thursday. For the quarter ended 30 June 2001, it posted a 6.60% rise in net profit to Rs 4.68 crore (Rs 4.39 crore) on sales of Rs 79.77 crore (Rs 77.99 crore).

BPCL (up 2.25% to Rs 179.70) posted gains after the company declared impressive quarterly results on Thursday. For the quarter ended 30 June 2001, the state-run oil refining major had posted a 18.82% rise in net profit to Rs 222.90 crore (Rs 187.60 crore) on sales of Rs 10,809.70 crore (Rs 10,146.30 crore).

Cummins (up 1.45% to Rs 45.45) was steady after the company announced its quarterly results on Thursday. For the quarter ended 30 June 2001, the engine maker 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).

G. E. Shipping (up 1.46% to Rs 27.85) ended flat after the company declared its quarterly results on Thursday. For the quarter ended 30 June 2001, the shipping major had posted a 27.16% rise in net profit to Rs 61.70 crore (Rs 48.52 crore) on sales of Rs 342.83 crore (Rs 268.25 crore).

Indian Hotels (up 0.20% to Rs 199) closed flat after the company announced disappointing quarterly results. For the quarter ended 30 June 2001, the hospitality major posted a 18.15% drop in net profit to Rs 12.08 crore (Rs 14.76 crore) on sales of Rs 144.46 crore (Rs 163.16 crore).

Source: www.capitalmarket.com

Money

Tell us what you think of this report