BOMBAY, 24 November 2002 — On Monday, the BSE closed at 3,057.16. The market was buoyed by buying support for select stocks from institutional investors. The gains would have been much higher but for the selling by India’ s largest and oldest State owned mutual fund, Unit Trust of India (UTI), in blue-chip stocks such as Reliance Industries, Tisco, Telco, Hindustan Lever and State Bank of India. IT major Wipro which had been a major gainer last week, ended lower due to profit-booking. Steel stocks such as Jindal Steel, Uttam Galva Steel, Jindal Vijaynagar Steel, Steel Authority of India (up 3.31 percent to Rs.7.80), Tata Metaliks, Tata Sponge Iron, Sesa Goa and Saw Pipes were up due to a sharp and sustained rise in steel prices in tune with the rising trend in the global markets.
The markets were closed on Tuesday.
On Wednesday the BSE closed at 3,075.48. Bill Gates’s visit to India and his announcements of substantial investments in the country’s IT sector has lifted the outlook for the Indian tech sector, raising expectations of an increase in outsourcing business. Infosys Tech was a major gainer. HCL Tech was also up on reports that it is close to withdrawing its court case against the US-based Perot Systems. State owned, HCPL was down. Grasim saw selling on reports that the watchdog of the Indian securities market, Securities and Exchange Board of India (SEBI) may soon launch formal investigations into the 10.05 percent stake in L & T.
On Thursday the BSE closed at 3,101.36. Sustained buying in New as well as Old Economy stocks led to the firmness in the market. Bajaj Auto was up on rumors that Shishir Bajaj, who owns around 6 percent stake in the company, may sell his holding to Kawasaki, who is technical collaborator of Bajaj Auto. Shipping Corporation of India (SCI) sank after G. E. Shipping announced deferment of its decision to acquire SCI for the time being, given the uncertainty surrounding SCI’s privatization. IDBI Bank soared after the parent, IDBI, ruled out merger with the bank.
On Friday the BSE closed at 3141.61. All round buying was seen in New as well as Old Economy stocks, especially of banking, automobile and cement sector. The sustained by FIIs also helped. Top gainers on the BSE were ICICI Bank, Larsen & Toubro and Reliance Industries. The top losers were HPCL, GlaxoSmithKline and HCL Tech. Of the 1,729 issues traded on the exchange, advances outnumbered declines, with 900 gainers and 659 losers. 170 issues ended unchanged. Banking stocks like ICICI Bank and State Bank of India were up after Parliament passed the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Bill, allowing banks to seize defaulters’ assets. Reliance Industries firmed up on reports that the gas find by the company in the Godavari basin is much bigger than initially estimated.
L & T also jumped on reports that domestic financial institutions were willing to sell their stake to Grasim, provided Grasim increases the open offer price to Rs.340 per share. Telco touched a new 52-week high of Rs.166.40 on news that it plans to launch a slew of new vehicles like the Indica Sport, the petrol engine Safari, and the Indigo Estate — apart from Indigo sedan — during the last quarter of this year.
Gold was at Rs.5230/- per 10 gms and silver was at Rs.7,860/- per Kg.
US dollar was at Rs.48.12, pound sterling at Rs.76.19, euro at Rs.48.25, UAE dirham at Rs.13.10, Kuwaiti dinar at Rs.159.61, Bahraini dinar at Rs.127.63, Saudi riyal at Rs.12.83, Qatari riyal at Rs.13.21 and Omani riyal at Rs. 124.87.