BOMBAY, 8 September — On Monday the BSE closed at 3,187.26. Reliance Industries was one of the biggest gainers of the day on news that it had struck huge reserves of gas at one of the offshore basins where it was exploring. Mastek surged following reports that it plans to increase staff strength by about 60 percent in the current year. With most of the IT companies reducing staff, this was indeed a very positive news. IFCI, the beleaguered financial institution was up after a ray of hope emerged when the Finance Minister Jaswant Singh’s said that he would soon announce a bailout scheme. On the other hand, IPCL was down after Reliance Industries announced that its open offer for IPCLs 20 percent stake was oversubscribed by 76 percent and it had decided to accept about 57 percent of the shares tendered.
On Tuesday the BSE closed at 3,159.77. ITC was a big loser after its parent British American Tobacco (BAT) denied rumors that it plans to raise equity stake in the Indian associate.
ONGC was up on news that it had struck a deal with oil refiners to sell crude oil at international prices of $27 per barrel, up from $22. Otis Elevator spurted, after it announced a second open offer to buy out the remaining shares at a price of Rs.320 per share.
On Wednesday the BSE ended at 3,173.35. The markets turned around after reports came in that the government is contemplating a further sweetening of the UTI deal, specifically for the US-64, in order to relieve redemption pressure expected next April. MTNL was the “star” of the day as there was talk that it may soon get an international long distance service license.
Hero Honda Motor ended flat after the company announced the launch of its new 133-cc motorcycle, Ambition.
On Thursday, the BSE closed at 3,181.47. The overall mood remained cautious amid the concern over lack of clarity in the privatization process of the Unit Trust of India (UTI). Operators as well as institutions have been using the uncertainty in the market as a trading opportunity. In specific stocks, Cipla gained ground after it reported that its sales for the first five months of the current fiscal was up by 30 percent.
Reliance Industries and Reliance Petroleum saw large scale selling as reports have emerged that RIL has violated certain provisions of the Companies Act 1956, relating to disclosures in the balance sheet. Asian Paints saw lots of investment buying after it announced that a partial general offer to acquire a 50.1 percent stake in Berger International, Singapore, for S$0.40 per share in cash.
On Friday the BSE closed at 3,141.11. Stocks of public sector undertakings (PSUs) remained weak ahead of a crucial meeting of the Cabinet Committee on Disinvestment (CCD) yesterday.
Tech stocks were badly hit following an overnight fall in the US markets amid the concern over a bearish forecast for retail issues and the American economy. Cement stocks were down as there was concern that the recent price hike of cement by Rs.10 per bag in Mumbai was unlikely to sustain because of a supply overhang. Nalco was a major loser of the day after Union Coal and Mines Minister Uma Bharti expressed her opposition to divestment in Nalco.
Gold was at Rs.5160/- per 10 gms and silver was at Rs.7805/- per Kg.
US dollar was at Rs.48.57, pound sterling at Rs.75.88, euro at Rs.47.86, UAE dirham at Rs. 13.22 Kuwaiti dinar at Rs. 161.08, Bahraini dinar at Rs.128.83, Saudi riyal at Rs.12.95, Qatari riyal at Rs.13.34 and Omani riyal at Rs. 126.15.