BOMBAY, 21 July — On Monday the BSE closed at 3,278.31. Domestic funds as well as FIIs stepped up sales.
Zee Telefilms was a major loser of the day due to sustained selling pressure amid concerns about the company’s future revenue growth. Infosys was a loser due to fears that cross border tensions would delay the lifting of travel restrictions, which would hurt IT companies. Tata Steel receded on reports that the US may impose anti-dumping duties on imports of Indian steel. Such stocks as Colgate Palmolive, GlaxoSmithKline, Ranbaxy Labs and ITC were up due to buying interest. Reckitt Benckiser was up. Escorts was beaten down ruthlessly after it posted a loss of Rs. 296.5 million for Q1.
On Tuesday the BSE closed at 3,229.18. Automobile stocks such as Bajaj Auto and Hero Honda Motors took a beating because of fears that poor rainfall would mean a fall in rural income. The same fears pulled down cement, banking and HLL stocks. Telco was gainer of the day after CLSA raised the stock’s rating to ‘Buy’ from ‘Underperformer’. Pharmacia Healthcare (formerly, Abbott Labs), was frozen at a 10 percent upper limit on reports that Pfizer Inc. had agreed to acquire Pharmacia Corporation, USA, for $60 billion in stock. Siemens was down despite a 60 percent jump in net profit to Rs.121.1 million for Q3.
On Wednesday the BSE closed at 3,216.07. Heavyweight pivotals such as Reliance Industries, Reliance Petroleum, Hindustan Lever and ITC contributed to the fall. While Old Economy pivotals such as Tata Steel, BSES, Gujarat Ambuja Cements and Grasim closed higher on selective buying. Federal Bank slumped after a 23.46 percent fall in net profit to Rs.174.2 million for Q1. Thermax was up with a net profit of Rs.27 million.
The moods of the markets turned around on Thursday and the BSE closed at 3,245.74. PSU stocks were the ‘stars’. HPCL spurted after the government gave itself a deadline of seven to ten days to announce what method would be followed in privatizing HPCL and BPCL. Reliance Industries and Reliance Petroleum were up on reports that the group was planning to sell aviation turbine fuel (ATF) to the defense forces. Ranbaxy saw buying after it announced a 190 percent rise in net profit for Q1 and also a bonus issue of equity shares in the ratio of 3:5. Kothari Products fell after the Maharashtra government announced a ban on all gutkha and paan masala products. Stationery giant, Camlin, was down despite a 1:1 bonus of equity shares.
On Friday the BSE closed at 3,230.47. The weakness on the NASDAQ led to selling pressures in tech and Old Economy stocks.
Of the 1,938 issues traded on the exchange, declines outnumbered advances, with 1,072 losers and 722 gainers. 144 issues ended unchanged. Zee Telefilms was a major gainer of the day when for Q1 it posted a 32 percent rise in consolidated net profit to Rs.476.7 million. NIIT was down despite winning a Rs.1,550 million order from the state of Andhra Pradesh. Wipro fell after it turned out a lower-than-expected Q1 performance of Rs. 1,630 million on revenues of Rs.9,300 million.
Gold was at Rs.5,255/- per 10 gms and silver was at Rs.8,590/- per Kg.
US dollar was at Rs.48.74, pound sterling at Rs.77.12, euro at Rs.49.55, UAE dirham at Rs.13.28, Kuwaiti dinar at Rs.162.21, Bahraini dinar at Rs.129.36, Saudi riyal at Rs.13.00, Qatari riyal at Rs.13.39 and Omani riyal at Rs.126.67.