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Sensex erases Monday's losses as tech stocks bounce back

Contrary to expectations, the market bounced back on Tuesday erasing previous day's losses completely on renewed buying support from institutions and operators.

After initial volatile movements, the Bombay Stock Exchange (BSE) 30-share Sensitive Index (Sensex) settled with a gain of 88.65 points at 3,407.32.

While buying support was seen almost across-the-board from local as well as foreign institutions, it was conspicuous in New Economy stocks following a recovery on tech-heavy Nasdaq on Monday. Buying was also seen in pharmaceuticals and other Old Economy stocks. Operators also made purchases in mid-cap stocks amid rumours of relaxation in the rolling settlement.

The market witnessed volatile movement in opening trades. The BSE Sensex opened in the red with a gap of 6 points at 3,313.13. It then retreated further to touch an intra-day low of 3,287.94. However, renewed buying support from institutions as well as speculators resulted in the Sensex bouncing back and remaining in the positive zone for the rest of the trading session.

Towards the close, the Sensex touched an intra-day high of 3,417.94 before settling at 3,407.67, gaining 88.65 points or 2.67% over its previous close.

The National Stock Exchange's S & P CNX Nifty Index gained 29.60 points to 1,096.60.

Turnover on BSE spurted to Rs 1,583.68 crore (Rs 864.73 crore on 25 June 2001) from 9.21 crore shares traded. Of the 1,354 issues traded, advances outnumbered declines with 795 gainers and 426 losers. 133 issues remained unchanged.

Pivotal stocks

Institutional investors were believed to have turned aggressive buyers in tech pivotals.

Software training major NIIT erased all its Monday's losses. The stock bounced back from a new 50-month low of Rs 276.10 to hit 16% upper limit of the circuit breaker at Rs 346.25, on renewed buying support at lower levels. Over 7.15 lakh NIIT shares were traded on BSE.

Among other tech stocks, Satyam Computer recovered from a new 23-month low of Rs 148.60 to a high of Rs 180.35 before settling at Rs 176.55, gaining 13.54% over its previous close. Satyam topped volumes on BSE with around 95 lakh shares being traded.

Infosys Technologies bounced back from an intra-day low of Rs 3,275 to Rs 3,590 before settling at Rs 3,540, gaining 6.04% over its previous close. Over 5.53 lakh Infosys shares involving Rs 194.23 crore were traded on BSE.

Media major Zee Telefilms also jumped from an intra-day low of Rs 100.20 to Rs 117.50 before settling at Rs 115.40, rising by 13.75% over its previous close.

Dr Reddy's Laboratories (DRL) crossed the Rs 1,700-mark in the intra-day trades to a high of Rs 1,740 before settling at Rs 1,680.05, gaining 9.47% over its previous close. The renewed buying on the counter was on expectations that the Danish drug maker Novo Nordisk may take one of the two diabetes drugs licensed from DRL into phase III trials. RDY, the DRL ADR listed on the New York Stock Exchange, gained $0.68 to $ 17.75 on Monday.

Other pharmaceutical majors Cipla (up 3.44% to Rs 1,121.75), Ranbaxy Laboratories (up 2.71% to Rs 470) and Glaxo (up 0.34% to Rs 328.85) also gained ground on defensive buying.

Fast moving consumer goods (FMCG) heavyweight ITC (up 4.48% to Rs 799) also contributed to the gains in the Sensex.

ICICI (up 7.88% to Rs 76) posted gains on institutional buying.

Cement pivotals like L & T (up 4.56% to Rs 216.70), Grasim (up 3.52% to Rs 304.45) and ACC (up 2.11% to Rs 132.90) advanced further on purchases by local institutions.

MTNL (up 2.16% to Rs 130.05) gained ground after the state-run telecom services provider announced a cut in its mobile phone services rental to Rs 250 per month from Rs 400 per month. The company has also cut charges on the outgoing calls to Rs 2 per minute from Rs 2.70 per minute earlier. The new charges would be applicable on 27 June 2001.

Reliance Petroleum (up 1.50% to Rs 47.40) and Reliance Industries (up 1.05% to Rs 345.50) also posted gains on selective buying support.

Stocks like Bhel, HPCL, Telco, Bajaj Auto, State Bank of India, Tata Steel, Nestle and BSES also advanced further.

Meanwhile, Hindustan Lever (down 1.62% to Rs 197) slipped on profit- booking amid concerns over its future growth.

Castrol (down 0.57% to Rs 219) and Hindalco (down 0.12% to Rs 814) also settled in the red on profit-booking.

Tech stocks

Non-Sensex tech stocks like DSQ Software (Rs 54.55), Infotech Enterprises (Rs 97.30) and Silverline Technologies (Rs 63.75) hit 16% upper limit of the circuit breaker.

Mastek (up 15.48% to Rs 102.55), SSI (up 15.21% to Rs 292), R. S. Software (up 13.45% to Rs 58.20), HCL Infosystems (up 12.89% to Rs 65.25), Polaris Software (up 12.26% to Rs 330), CMC (up 12.53% to Rs 304), Rolta India (up 10.24% to Rs 56), Digital Equipment (up 8.94% to Rs 479.90) and Sonata Software (up 8.59% to Rs 17.10) exceeded 8% upper limit.

Pentasoft Technologies (Rs 71) and Nucleus Software (Rs 61.55) hit 8% upper limit.

Wipro (up 5.99% to Rs 1,360) gained ground on institutional buying, but came off from its day's high of Rs 1,397 on selling pressure at higher levels.

Buying was also seen in other tech stocks like Geometric Software, Aptech, Aztec Software, Mascot Systems, Mascon Global, Tata Infotech, Hughes Software, HCL Technologies, PSI Data Systems, Subex Systems and VisualSoft Technologies.

Telecom stocks

Telecom majors Global Tele-Systems (Rs 126.35) and HFCL (Rs 74.45) hit 16% upper limit of the circuit breaker on renewed buying support. Over 60 lakh HFCL shares were traded on BSE.

Shyam Telecom (up 15.31% to Rs 61), Krone Communications (up 9.28% to Rs 116) and Tata Telecom (up 8.46% to Rs 75) crossed 8% upper limit of the circuit breaker.

Optical fibre makers Sterlite Optical (up 6.62% to Rs 348.50) and Aksh Optifibre (up 7.57% to Rs 129.35) recorded smart gains.

Buying was also seen in other telecom-related stocks like Mobile Telecom, Framatome Connectors, Goldstone Technologies, Punjab Communications, Birla Ericsson, Vindhya Telelink, Surana Telecom, Sterlite Industries, VSNL and Finolex Cables.

Media stocks

Among media stocks, Pentamedia Graphics (Rs 68.80) hit 16% upper limit of the circuit breaker, while Crest Communications (up 15.75% to Rs 61) crossed 8% upper limit.

Balaji Telefilms (Rs 205.10) and Jain Studios (Rs 42.10) hit 8% upper limit.

Buying was seen in stocks like Creative Eye, Mid-Day Multimedia, TV 18, Mukta Arts, Sri Adhikari Brothers, Tips Industries, Pritish Nandy Communications, Cinevista Communications and Saregama India.

Adlabs Films (down 5.95% to Rs 54.50) slipped on profit-booking.

Pharmaceutical stocks

Buying was seen in non-Sensex pharmaceutical stocks like KDL Biotech, Kopran, Ipca Laboratories, J. B. Chemicals, Duphar Pharma, Panacea Biotech, Suven Pharma, Cadila Healthcare, Alembic, Lupin Laboratories, Burroughs Wellcome, Wyeth Lederle, Rhone Poulenc, Fulford, Wockhardt, Sun Pharma, Aurobindo Pharma, Novartis, SmithKline Beecham Pharma, Knoll Pharma and Pfizer.

Hoechst Marion Roussel (up 1.44% to Rs 405.75) rose further after the company reported a 5% rise in sales to Rs 211 crore at its annual general meeting on Monday. The company has attributed this to the strong growth of its key brands and other restructuring efforts over the last few years.

Stocks like Ajanta Pharma, Abbott Laboratories, E. Merck, Nicholas Piramal, Parke Davis, German Remedies and Astra IDL declined on selling pressure.

FMCG stocks

Among FMCG stocks, selective buying was seen in Godfrey Philips, United Breweries, Bausch & Lomb, Nirma, Bata India, Gillette India, Kodak India, Tata Tea, SmithKline Beecham Consumer Healthcare, Cadbury India, Dabur India, Procter & Gamble and Britannia Industries.

Shaw Wallace, Archies Greetings, Reckitt Benckiser and VST Industries lost ground on profit-booking.

Banking and finance stocks

Buying support was also seen in banking and finance stocks like UTI Bank, Bank of India, IDBI Bank, Global Trust Bank, City Union Bank, Nedungadi Bank, HDFC, Corporation Bank, HDFC Bank, Tata Finance, Centurion Bank, Federal Bank, J & K Bank, South Indian Bank and LIC Housing Finance.

On the other hand, United Western Bank, Bank of Rajasthan, Bank of Punjab, Bank of Baroda, ICICI Bank, Oriental Bank of Commerce and IndudsInd Bank settled in the red.

Side counters

Among side counters, DSQ Biotech (Rs 28.40) hit 16% upper limit of the circuit breaker.

Apollo Hospital (up 12.44% to Rs 99), Supreme Industries (up 11.39% to Rs 45) and TVS Electronics (up 9.51% to Rs 32.25) crossed 8% upper limit.

Jindal Steel (Rs 170.15), Sesa Goa (Rs 50.90), Amtek India (Rs 41) and HBL Nife Power (Rs 20.50) were frozen at 8% upper limit.

Selective buying was also seen on other side counters like Hinduja TMT, Thermax, Nath Seeds, Ballarpur Industries, Tata Honeywell, Syngenta India, Wartsila India, Tata Power, Crisil, Adani Exports, BPCL, Amara Raja Batteries, Voltas, Philips India, Esab India, Tata Infomedia, Bombay Dyeing, Bharat Electronics, Apollo Tyres and Moser Baer.

On the other hand, Shriram Honda Power (Rs 51.85) remained frozen at 8% lower limit.

Selling pressure was seen in Agro Dutch Foods, Saw Pipes, Colour Chem, Foseco India, Modi Rubber, Hikal, Clariant, Max India, Raymond, Indian Rayon, Exide Industries, Birla 3M, Hindustan Inks, Birla 3M, Indian Hotels and Carrier Aircon.

Source: www.capitalmarket.com

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