BOMBAY, 27 May — On Monday the BSE closed at 3,640 and the NSE at 1,169.45. The US power major, Enron, has issued a pre-termination notice to the Maharashtra State Electricity Board (MSEB) announcing its decision to pull out of the project.
Cement stocks such as ACC, L & T, Gujarat Ambuja Cements and Grasim also slipped on profit-booking.
Institutional buying was seen in such pharma stocks as Dr Reddy’s Laboratories, Glaxo, Ranbaxy Laboratories and Cipla. Selective buying was also seen in other old economy pivotals like Bajaj Auto, M & M, BSES, Reliance Industries, Bhel and MTNL.
German Remedies was flat for the full day, ahead of the announcement of its annual results. For the year ending March 31, 2001, the pharma major posted a net profit of Rs.333 million (Rs.324 million) on sales of Rs. 2048.2 million (Rs.1,989 million). Bata was also up because the company is changing its business strategy. It may outsource its products from China and focus on retailing. Kochi Refineries lost ground following poor quarterly performance. For Q4 ending March 31, 2001, the refining major posted a 62.56 percent drop in net profit to Rs.251.6 million.
On Tuesday the BSE closed at 3,640.60 and the NSE Nifty Index at 1,168.10.
Dr Reddy’s Labs was the day’s gainer after it announced that two of its anti-diabetes drugs will enter phase III clinical trials in the last quarter of 2001.
MTNL (down 2.63 percent to Rs.151.70) slipped on reports that the government would not allow state-run telecom companies to bid for the fourth cellular operator licenses being auctioned by it.
Monsanto Chemicals was frozen at 8 percent upper limit of the circuit breaker ahead of the company’s board meeting to consider a bonus issue. For the year ending March 31, 2001, the company posted a 59.93 percent rise in net profit to Rs.192.4 million. It declared a bonus issue of 1:1.
On Wednesday the BSE closed at 3,674.54 and the NSE Nifty Index at 1,179.10. Pharmaceutical pivotals lost ground on profit-booking. MNC stocks displayed mixed trends. NIIT was firm after the company approved the hike in FII investment limit to 49 percent from 40 percent. PSI Data Systems hit 16 percent upper limit for the third time on reports of the company’s French parent being close to finalizing the sale of its 50 percent stake in the company.
I-flex Solutions is rumored to be interested in the French company’s stake, Aditya Birla is also believed to be a major contender. Cement stocks were also firm.
In telecom scrips, Hughes Tele.com shot up after the company launched its basic telephone service in Ahmednagar.
On Thursday the BSE closed at 3,683 and the NSE Nifty Index at 1,181.85.
Reliance Industries was up on reports that the company has decided to offload around 780 million shares of Reliance Petroleum (RPL), accounting for 15 percent of RPL’s capital, through its proposed ADR issue. This should result in around Rs.55.00 billion for RIL.
State-run electrical equipment major Bhel remained firm on reports of the US planning to lift all economic sanctions on India by year’s end. Mphasis BFL saw buying after the company announced that it had signed a deal with US-based partner Spectrum Software Inc. to undertake software processing for a major credit card processors.
On Friday, there was considerable profit-taking and this pulled the BSE down to close at 3,660. Pharma major Cipla was down following reports that the company was diversifying into the FMCG sector. Selling was seen on the counters of Reliance Petroleum due to fears of the cyclone threatening the west coast of India. Among telecom stocks, VSNL was firm on reports that the company’s advisors have set a deadline (Aug. 6, 2001) for the submission of bids for taking stakes in the company. Pentamedia Graphics announced the merger of its three subsidiaries.
