BOMBAY, 23 June — On Monday the BSE closed at 3,323.50. Selling in IT stocks was rampant following the bearish outlook for the US market and the US economy, which accounts for about 60 percent of the Indian IT industry’s export revenue. In specific stocks, MTNL was the “star” of the day on hopes that the public sector telecom giant might be put on the selling block in the near future. Cigarette major, ITC rose on reports that the government is considering a ban on ‘guthka’, a chewing-tobacco product and also on rumors that Unit Trust of India (UTI) was selling a part of its stake in the company to British American Tobacco.

L & T saw selling after it reported a 25.41 percent fall in net profit for Q4. Other cement stocks were also down on news that the off-take of cement may slow down with the arrival of monsoon.

On Tuesday the BSE closed at 3,284.54. Foreign institutions remained sellers to the extent of Rs. 245.50 crore for the month of June 2002 so far and UTI was also rumored to be an aggressive seller in index stocks.

Heavyweights like Hindustan Lever, Reliance Industries, State Bank of India and ITC contributed to the fall of the Sensex.

Hughes Tele.com spurted on reports that Tata Teleservices was in final talks with Hughes Network Systems to merge with the US firm’s local fixed-line phone unit Hughes Tele.com. Machino Plast hit the 20 percent upper limit after the company announced that its board was considering a bonus issue.

On Wednesday selling continued by local as well as foreign institutions. UTI was one of the biggest sellers of the day and it was reported that the fund had reduced equity exposure of its flagship scheme, US-64, by 9 percent to 60 percent as on 31 May 2002, from around 69 percent on 30 June 2001.

MTNL was once again on the buyers list after investment bank Goldman Sachs upgraded its rating on the stock to “market out-performer”. Public sector shipping major, Shipping Corporation fell after it reported an 81.60 percent fall in net profit for Q4. While on the other hand, Indian Oil saw some buying after it announced an 82 percent rise in net profit for Q4.

On Thursday the BSE closed at 3,264.02.

Infosys Tech rose after the banking business unit of the company today announced that it has acquired the Trade IQ product division of US based IQ Financial Systems Inc for $3.9 million. State Bank of India, India’s largest commercial bank saw investment buying when for Q4 it posted an 80.26 percent rise in net profit.

On Friday the BSE closed at 3,242.75. Pharma major, Dr. Reddy’s Lab was down after US drug major Pfizer Inc. sued the company for allegedly infringing its patent on Norvasc. ITC was one of the major losers of the day on news that UTI might get the government’s permission to sell its stake in the company. Vysya Bank was in the limelight following the Dutch ING group’s acquisition of an additional 24 percent stake in the bank at Rs. 626.92 per share.

Gold was at Rs. 5,400/- per 10 gms and Silver was at Rs. 8,460/- per kg. US$ was at Rs. 48.85, sterling at Rs. 73.25, euro at Rs. 47.47, UAE Dhm at Rs. 13.30, Kuwaiti dinar at Rs. 161.30, Bahraini dinar at Rs. 129.57, Saudi riyal at Rs. 13.07, Qatari riyal at Rs. 13.42 and Omani riyal at Rs.127.87.