Search the Internet          Tips  Sites: Finance, Investment

Old Economy stocks lift Sensex by 34 points

The market posted gains on Monday on renewed buying support in Old Economy stocks.

After moving in a narrow range of 40 points, the Bombay Stock Exchange (BSE) 30-share Sensitive Index (Sensex) rose by 34.36 points to settle at 3,285.89.

The National Stock Exchange's S & P CNX Nifty Index gained 9.75 points to close at 1,061.45.

The BSE Sensex opened in the positive zone with a gap of 4.39 points at 3,255.92. After touching a low of 3,249.46 in opening trades, the Sensex bounced back and remained in the positive zone for the rest of the trading session. It moved in a narrow range for the better part of the session before gaining ground towards the close. In the end, the Sensex touched a high of 3,289.46 before settling at 3,285.89, gaining 34.36 points or 1.06% over its previous close.

Buying support in select Old Economy stocks kept the market steady. Although the quarterly results announced by most of the companies so far has shown a mixed trend, the market seems to be finding value in badly battered Old Economy stocks. While these stocks held on to their gains, New Economy stocks declined on selling pressure.

Turnover on BSE dropped to Rs 630.84 crore (Rs 824.14 crore on 27 April 2001) from 4.39 crore shares traded. Of the 1,240 issues traded, advances outnumbered declines with 655 gainers and 477 losers. 108 issues remained unchanged.

Pivotal stocks

Bajaj Auto (up 9.33% to Rs 250.30) posted gains on renewed buying support. For the quarter ended 30 June 2001, the company posted a 3.82% rise in net profit to Rs 120.07 crore (Rs 116.32 crore) on sales of Rs 915.62 crore (Rs 880.26 crore).

Bajaj's Q1 net profit is higher than analysts' expectations - a capitalmarket.com poll of six auto analysts had, in fact, forecast a 18.3-33.8% fall in its net profit to Rs 77-95 crore. The net profit for the quarter is more or less in line with expectations if one factors the extra-ordinary income of Rs 45 crore, which is a premium received from an overseas partner for its non-life insurance business.

Bhel (up 9.03% to Rs 164.75) bounced back on renewed buying support after an over 11% fall on Friday, following the announcement of its quarterly results. 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.

Glaxo (up 7.22% to Rs 271.65) rose further despite lower-than-expected quarterly results. One reason for the stock's recovery could be that the scrip has already been beaten down sharply on the eve of the announcement of its Q2 results. In the five trading sessions ahead of the results, the scrip fell 14.52% from Rs 296.40 on 19 July 2001 to a four-year low of Rs 253.35 on 27 July 2001. Analysts said that even after excluding the extra-ordinary income, the company's performance was reasonable, as its margins were steady despite a fall in sales.

Reliance Petroleum (up 3.02% to Rs 44.40) gained ground on renewed buying support following its impressive results. For the quarter ended 30 June 2001, the private sector refining giant posted a 52% rise in net profit to Rs 456 crore (Rs 300 crore) on sales of Rs 8,865 crore (Rs 5,983 crore).

Reliance Industries (RIL) (up 2.46% to Rs 313.95) also posted gains ahead of the announcement of its results. The company is scheduled to announce its quarterly results on Tuesday.

The RIL stock has shed 21.21% from its recent peak of Rs 350 on 13 July 2001. The quarterly performance of the petrochemicals major is expected to be less than encouraging. Although the company's sales volumes have gone up marginally by 7% to 2.8 million tonne during Q1, players expect the margins to be under pressure due to sluggish market conditions and increased raw material costs. At the same time, product prices have also been under pressure. Given these factors, analysts expect the company to report a negative growth in net profit.

BSES (up 1.95% to Rs 199.10) bounced back from a low of Rs 194.70 on fresh buying on the counter following its impressive results. For the quarter ended 30 June 2001, the electricity supplier posted a net profit of Rs 99.64 crore (Rs 86.38 crore) on sales of Rs 671.57 crore (Rs 614.35 crore).

ITC (up 2.55% to Rs 775) gained ground towards the close of the session.

Cement pivotals L & T (up 3.35% to Rs 212.60), Grasim (up 4.74% to Rs 314.95), Gujarat Ambuja Cements (up 1.86% to Rs 175) and ACC (up 1.27% to Rs 139.15) posted gains.

Cipla (up 1.47% to Rs 1,082.30), Ranbaxy Laboratories (up 1.08% to Rs 533.85) and Dr Reddy's Laboratories (up 0.69% to Rs 1,599.55) ended in the positive zone.

Infosys Technologies (up 0.98% to Rs 3,656.80) also closed in the positive territory.

Meanwhile, Zee Telefilms (down 2.69% to Rs 72.35) sank deeper into the red on sustained selling pressure. The stock touched a 41-month low of Rs 68.15 in intra-day trades.

The Zee stock had shed 21.32% last week on 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. Over 10 lakh Zee shares were traded on BSE.

Telco (down 5.39% to Rs 65.80) slipped on selling pressure.

Tech pivotals like NIIT (down 7.68% to Rs 176.10) and Satyam Computer (down 3.65% to Rs 150.65) lost ground.

HPCL (down 0.67% to Rs 148.85) was subdued ahead of the announcement of its quarterly results.

Hindalco (down 2.91% to Rs 735) declined ahead of the announcement of its results. The Aditya Birla group aluminium major is scheduled to announce its quarterly results on Wednesday.

Nestle (down 0.10% to Rs 540) ended flat after the company posted its quarterly results on Friday. For the quarter ended 30 June 2001, the fast moving consumer goods (FMCG) MNC posted a 20.5% rise in net profit to Rs 44.70 crore (Rs 37.10 crore) on sales of Rs 468.30 crore (Rs 419.80 crore).

Tech stocks

Among non-Sensex tech stocks, DSQ Software (up 17.65% to Rs 40.95) posted gains on fresh buying support after a ruling by a Chennai court that restrained both BSE and NSE 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. Over 20 lakh DSQ Software shares were traded on BSE.

Mascot Systems (Rs 73.40) was frozen at 8% upper limit of the circuit breaker for the second straight session following its improved 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).

Nucleus Software (up 7.74% to Rs 71) was firm after the company announced impressive results on Thursday. For the quarter ended 30 June 2001, the company posted a net profit of Rs 3.08 crore (Rs 1.84 crore) on sales of Rs 8.98 crore (Rs 4.99 crore).

CMC (up 4.21% to Rs 279.95) was firm after the company announced its results on Friday. For the quarter ended 30 June 2001, the state-run software firm posted a 33.43% rise in net profit to Rs 3.07 crore (Rs 2.30 crore) on an income of Rs 90.30 crore (Rs 70.34 crore).

Buying was seen in other tech stocks like Subex Systems, e-Serve International, Mphasis BFL, Onward Technologies, Sierra Optima, Geometric Software, Silverline Technologies, Wipro, PSI Data Systems, Trigyn Technologies and Digital Equipment.

On the other hand, Mastek (down 12.24% to Rs 72.80) slipped on selling pressure at higher levels.

SSI (down 7.95% to Rs 171.90) also declined on selling pressure, after Friday's 19% gain.

Aptech (down 5% to Rs 56) remained subdued ahead of the announcement of its quarterly results.

Fujitsu ICIM (down 6.85% to Rs 53.05) slipped on selling pressure at higher levels, after recent gains. The stock had risen nearly 35% in the last two sessions on rumours that the company would be merged with its profitable subsidiary, Zensar Technologies.

Selling was seen in other tech stocks like Tata Infotech, Aftek Infosys, HCL Technologies, Aptech, Hughes Software, Polaris Software, Sonata Software, Pentasoft Technologies, Infotech Enterprises, Rolta India and Aztec Software.

Telecom stocks

Sterlite Optical (down 7.09% to Rs 183.60) declined on profit-booking, after gaining over 8% on Friday. The optical fibre major was dragged earlier last 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.

Global Tele-Systems (down 3.30% to Rs 103.95) and HFCL (down 4.01% to Rs 55.10) ended weak on selling pressure at higher levels, after a steady start.

Framatome Connectors (up 5.89% to Rs 84.75) slipped following its weak results. For the quarter ended 30 June 2001, the company posted a net profit of Rs 1.68 crore (Rs 2.36 crore) on sales of Rs 14.86 crore (Rs 14.22 crore).

On the other hand, Finolex Cables (up 10.69% to Rs 179.65) firmed up on renewed buying towards the close of the session.

Aksh Optifibre (Rs 95) hit 8% upper limit of the circuit breaker on sustained buying support.

VSNL (up 5.05% to Rs 277.85) bounced back from an intra-day low of Rs 260 on renewed buying. The stock had shed 16% last week 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.

The company, which is also the country's largest Internet Service Provider (ISP), came out with results that failed to meet market expectations. For the quarter ended 30 June 2001, it 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).

Buying was also seen in other telecom-related stocks like Tata Telecom, Shyam Telecom, Punjab Communications, Vindhya Telelink, Surana Telecom, Usha Beltron and Goldstone Technologies.

Media stocks

Among media stocks, Mukta Arts (Rs 114.55) remained frozen at 8% lower limit of the circuit breaker following a lower-than-expected response to the release of the company's latest film, 'Yaddein'.

Tips Industries (down 6.96% to Rs 54.10) also lost ground on selling pressure following its poor quarterly performance. For the quarter ended 30 June 2001, the company posted a loss of Rs 10.98 crore (net profit Rs 3.04 crore) on sales of Rs 30.97 crore (Rs 20.90 crore).

Selling was also seen in other media stocks like Creative Eye, Sri Adhikari Brothers and Jain Studios. On the other hand, Balaji Telefilms (Rs 177.40) was frozen at 8% upper limit of the circuit breaker on sustained buying.

Buying was also seen in Padmalaya Telefilms, Mid-Day Multimedia, Cinevista Communications, Adlabs Films, Pentamedia Graphics, Crest Communications and TV 18.

Pharmaceutical stocks

Among non-Sensex pharmaceutical stocks, Wockhardt (up 6.06% to Rs 351.90) rose after the company declared impressive results during market hours. For the quarter ended 30 June 2001, the company posted a 70.68% rise in net profit to Rs 22.70 crore (Rs 13.30 crore) on sales of Rs 170 crore (Rs 153.80 crore).

Hoechst Marion Roussel (up 3.06% to Rs 403.65) bounced back from an intra-day low of Rs 371.25 on fresh buying after the company announced its results. For the quarter ended 30 June 2001, the company posted a 58.44% rise in net profit to Rs 12.20 crore (Rs 7.70 crore) on sales of Rs 122.50 crore (Rs 121.50 crore).

J. B. Chemicals (up 2.31% to Rs 92.95) gained ground after the company announced its results on Saturday. For the quarter ended 30 June 2001, the pharma major posted a 21.19% rise in net profit to Rs 6.99 crore (Rs 5.77 crore) on sales of Rs 57.98 crore (Rs 45.89 crore).

Sun Pharma (up 1.34% to Rs 605.10) ended steady ahead of the announcement of its results. For the quarter ended 30 June 2001, the local pharma major posted a 33.67% rise in net profit to Rs 41.52 crore (Rs 31.06 crore) on sales of Rs 167.27 crore (Rs 132.66 crore).

Buying was also seen in other pharmaceutical stocks like SmithKline Beecham Pharma, Suven Pharma, FDC, Burroughs Wellcome, Ipca Laboratories, Pfizer, Astra IDL, Nicholas Piramal, Fulford, Glenmark Pharma, Cadila Healthcare, Novartis, Knoll Pharma and Parke-Davis.

On the other hand, Morepen Laboratories (down 1.44% to Rs 82.20) declined on selling pressure after the company declared its results on Friday. For the quarter ended 30 June 2001, the company had posted a net profit of Rs 19.82 crore (Rs 17.85 crore) on sales of Rs 117.35 crore (Rs 104.55 crore).

Aurobindo Pharma, Ajanta Pharma, Torrent Pharma, E. Merck and German Remedies ended in the red.

FMCG stocks

Among FMCG stocks, Tata Tea (up 9.46% to Rs 170.70) firmed up after the company reported a spurt in its net profit from core operations, after trading hours, on Friday. The company had posted a 84.6% jump in its net profit for Q1 ending June 2001 to Rs 15.23 crore from Rs 8.25 crore in the corresponding period of the previous year. Substantial increase in profit margins is responsible for the rise in profit. The profit margin before interest depreciation and tax (PBIDT) had gone up to 15.94% in the current quarter from 12.57% in the June 2000 quarter.

Britannia Industries (up 3.38% to Rs 590.90) posted gains following its impressive results. For the quarter ended 30 June 2001, the company posted a 10% rise in net profit to Rs 16.20 crore (Rs 13.50 crore) on sales of Rs 349.40 crore (Rs 330.20 crore).

Godrej Consumer Products (up 7.65% to Rs 47.85) continued to rise on renewed buying support following the impressive results declared 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.

Gillette India (up 2.65% to Rs 330) ended firm ahead of the announcement of its quarterly results.

Kodak India (Rs 180) ended unchanged ahead of the announcement of its quarterly results. After market hours, the photographic equipment major posted a 75.36% drop in net profit to Rs 2.53 crore (Rs 10.27 crore) on sales of Rs 201.66 crore (Rs 177.90 crore).

Selective buying was seen in other FMCG stocks like Reckitt Benckiser, Cadbury India, Procter & Gamble and Bata India.

On the other hand, Nirma (down 1.66% to Rs 384) ended weak after the company announced its results on Saturday. For the quarter ended 30 June 2001, it posted a 13.27% drop in net profit to Rs 58.63 crore (Rs 67.60 crore) on sales of Rs 540.56 crore (Rs 554.93 crore).

Archies Greetings, Rayban Sun Optics, United Breweries, Dabur India, Godfrey Philips India and SmithKline Beecham Consumer Healthcare ended in the red.

Banking stocks

Among banking stocks, J & K Bank (up 7.82% to Rs 51.70) firmed up after the company announced encouraging results on Saturday. For the quarter ended 30 June 2001, the company had posted a net profit of Rs 55.61 crore (Rs 37.07 crore) on sales of Rs 375.11 crore (Rs 280.32 crore).

Bank of Baroda (up 6.33% to Rs 45.35) and ICICI Bank (up 5.76% to Rs 132.25) gained ground on renewed buying support.

UTI Bank, Corporation Bank, Dhanalakshmi Bank, HDFC Bank, Bank of Punjab, IndusInd Bank, and Oriental Bank of Commerce ended in the positive zone.

On the other hand, Global Trust Bank, Federal Bank and Bank of India ended in the red.

Side Counters

Among side counters, ONGC (up 6.27% to Rs 169.60) posted gains following its impressive results. For the quarter ended 30 June 2001, the state-run oil exploration major posted a 57.43% rise in net profit to Rs 1,476.61 crore (Rs 937.96 crore) on sales of Rs 5,561.38 crore (Rs 5,476.04 crore).

Indian Aluminium (up 5.79% to Rs 84.90) gained ground after the company announced its results. For the quarter ended 30 June 2001, it posted a 12% rise in net profit to Rs 28.66 crore (Rs 25.57 crore) on sales of Rs 335.88 crore (Rs 285.20 crore).

Aventis CropScience (up 5.50% to Rs 115) rose after the company announced improved results. For the quarter ended 30 June 2001, it posted a net profit of Rs 12.20 crore (Rs 7.70 crore) on sales of Rs 132.70 crore (Rs 130 crore).

Tata Chemicals (up 5.10% to Rs 40.15) rose further after the company announced last week, along with its quarterly results, that it will consider a buy-back of shares. For the quarter ended 30 June 2001, the company had 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).

Moser Baer (up 2.01% to Rs 256.25) ended steady ahead of the announcement of its results. After market hours, for the quarter ended 30 June 2001, the compact disc maker posted a 48% jump in net profit to Rs 45.38 crore (Rs 30.74 crore) on sales of Rs 145.14 crore (Rs 70.30 crore).

India Cements (up 1.62% to Rs 34.50) was steady after the company announced its results. For the quarter ended 30 June 2001, the cement major posted a 104.76% rise in net profit to Rs 11.61 crore (Rs 5.67 crore) on sales of Rs 314.10 crore (Rs 332.09 crore).

Indian Rayon (up 0.97% to Rs 77.75) was steady ahead of the announcement of its results. After market hours, for the quarter ended 30 June 2001, the company posted a net profit of Rs 9.91 crore (Rs 9.83 crore) on sales of Rs 342.19 crore (Rs 313.39 crore).

On the other hand, Adani Exports (down 8.99% to Rs 199.55) declined after the company announced its results on Saturday. For the quarter ended 30 June 2001, the company had posted a 11.51% fall in net profit to Rs 24.52 crore (Rs 27.72 crore) on sales of Rs 631.56 crore (Rs 614.28 crore).

Titan Industries (down 8.80% to Rs 35.75) lost ground after the company declared disappointing results. For the quarter ended 30 June 2001, the company posted a loss of Rs 14.61 crore (net profit Rs 0.13 crore) on sales of Rs 88.19 crore (Rs 101.32 crore).

Saw Pipes (down 6.19% to Rs 63.65) came off from the day's high of Rs 72.70 following disappointing results. For the quarter ended 30 June 2001, the company posted a 34.36% drop in net profit to Rs 3.82 crore (Rs 5.82 crore) on sales of Rs 55.66 crore (Rs 133.14 crore).

Source: www.capitalmarket.com

Money

Tell us what you think of this report