BOMBAY, 22 July — The Indian stock markets were directionless for most of the week. Quarterly results did not provide the much-needed market stimulus.
Also this week, the markets were worried by the Unit Trust of India (UTI) debacle. And on Friday, a mood of pessimism set in when news of the Central Bureau of Investigation (CBI) raids on the residences of UTI’s ex-chief and several other officials. The former UTI chairman has been charged with criminal conspiracy and fraud.
On Monday, the BSE closed at 3,434.83 and the NSE at 1,105.50. Hindustan Lever was in the limelight and Morgan Stanley is believed to have purchased a huge bloc of HLL stock.
DSQ Software lost ground sharply with news that it would suspend trading from July 27 following the company’s non-compliance with the listing agreement.
On Tuesday the BSE closed at 3,431.93.
Huge selling was reported in VSNL, Cummins, Punjab Tractors, ACC, Bhel, Colgate, VisualSoft and Reliance Petroleum. At the same time, Telco moved in the other direction, reporting buying based on reports that the Tatas have hiked their stake in the company to 22.51 percent by creeping acquisition route. HDFC ended in positive territory after it announced a 19.26 percent rise in net profit for Q1.
On Wednesday the BSE closed at 3,383.41 and the NSE at 1,091.95. Satyam Computer saw selling with the government of Singapore being the most aggressive seller. Fast moving consumer goods stocks such as HLL, ITC and Nestle ended in the negative. L & T announced its Q1 results after market hours, posting a 244.65 percent rise in net profit to Rs.650.7 million.
Tata Steel disappointed for Q1 when it posted a 80 percent drop in net profit to Rs.205.3 million (Rs.1.01 billion) on sales of Rs.16.11 billion (Rs.17.28 billion).
In the media sector, Mukta Arts ended weak after the company announced the sale of domestic theatrical rights (except Mumbai) of its film ‘Yaadein’ for Rs. 84.4 million. On Thursday the BSE closed at 3,370.93 and the NSE at 1,085.90.
NIIT reported a huge 93 percent drop in profits and 25 percent decline in revenues. NIIT’s shares dived 16 percent to Rs.252.25, a new four-year low.
Tisco fell to further to Rs.92.65 following its dismal performance. IT and cement stocks were the major losers of the day. Pharma, FMCG and telecom sectors were the marginal gainers.
There was buying in Digital India after it reported that its Q1 net had gone up by 3.6 percent, beating analysts’ flat estimates. Dr Reddy’s Labs also saw some buying as the company has now moved closer to launching new products in the US.
And on Friday, the CBI raids on UTI chairman’s house further spoilt sentiments. There was selling across the board. The BSE settled at 3,340.75 and the NSE at 1,077.70. Of the 1,458 issues traded, declines outnumbered advances with 852 losers and 446 gainers. 160 issues remained unchanged. NIIT (down 19.64 percent to Rs.202.70) touched a new 55-month low of Rs. 200.10 on sustained selling pressure. Satyam Computer (down 3.22 percent to Rs.168.40) also slipped on sustained institutional selling.
Cement pivotals like L&T, ACC and Gujarat Ambuja Cements declined on reports that the off-take of cement had slowed down in the monsoon season.
Among the companies to declare their Q1 results, ITC posted a 20.76 percent rise in net profit to Rs.3,006.7 million. Wipro announced a 97 percent rise in net profit to Rs.2.08 billion. Global Tele-Systems posted a 12.88 percent drop in net profit to Rs.270.8 million.
Gold was Rs.4,425/- per 10 gms and silver was Rs.7295/- per Kg.
US dollar was Rs.47.13, pound sterling at Rs.67.32, Deutsche mark at Rs. 21.01, euro at Rs.41.09, UAE dirham at Rs.12.83, Kuwaiti dinar at Rs.153.04, Bahraini dinar at Rs.124.99, Saudi riyal at Rs.12.56, Qatari riyal at Rs.12.94 and Omani riyal at Rs. 122.39.