BOMBAY, 10 March — On Monday the BSE Sensex closed at 3,642.58. A number of companies announced interim dividends before the end of FY 2002 which was a move to escape from shelling out huge sums to the government under the new tax regime. It was announced in the new budget that all dividends in the hands of the recipient would be subject to 10 percent tax. Hence companies decided to pay a substantial interim dividend so that the final dividend could be done away with.
Tata Steel announced an interim dividend of 40 percent for FY 2002, FDC of 100 percent interim, Balrampur Chini of 75 percent, Tata Chemicals of 50 percent, Indian Hotels at 80 percent, Sundaram Fasteners of 100 percent interim dividend for FY 2002 and Kotak of a 30 percent interim.
Two wheeler majors were probably the only prominent gainers of the day. Hero Honda Motors (Rs.383) and Bajaj Auto (Rs.470) posted gains after the former announced a 44.5 percent rise and latter a 29 percent rise, respectively, in their two-wheeler sales for February 2002.
On Tuesday the BSE ended at 3,641.10. Old economy pivotals Telco (Rs.130.90), Tata Steel (Rs.106), State Bank of India (Rs.232.35) and Reliance Petroleum (Rs. 28.25) declined on selling pressure. MTNL (Rs.147.40) lost ground on fears of further competition from Bharti Tele-Ventures after it commenced basic telecom services in the Delhi circle. Bajaj Auto announced an interim dividend of 120 percent for FY 2002 and an additional special dividend of Rs.2 per share on account of the one-time premium it received from Germany’s Allianz AG, its partner in the insurance joint venture.
AstraZeneca Pharma’s (Rs.353.55) Swedish parent made an open offer to buy out the remaining 43.50 percent stake in its Indian affiliate at Rs.375 per share.
On Wednesday the BSE closed at 3,614.44.
Cement stocks were down on fears of lower off-take of cement in the current month on account of the recent riots in Gujarat. According to figures released by the Cement Manufacturers Association (CMA), India’s cement shipments rose by 19.3 percent to 8.78 million tons in February 2002 from 7.36 million tons a year earlier.
State Bank of India (SBI) ended lower after the Reserve Bank of India (RBI) announced that FIIs cannot make fresh purchases in SBI as their holdings had now hit the 20 percent ceiling. Private sector bank stocks were in the limelight.
On Thursday the BSE closed at 3,690.27. An upgrade on Asia by Merrill Lynch provided further fuel to tech stocks. Early signs of a recovery in the US may translate into higher business for Indian tech companies. Telco recovered to Rs.129.45 following reports that the tax on fleet operators might be rolled back.
Tata Steel was up on reports that most steel exports to the US from India would be exempted from new tariffs under developing country exemption.
Global Trust Bank firmed up to Rs.28.05 amid rumors of the banks’ promoters Ramesh Gelli and associates being in talks with foreign investors/banks for sale of their 26 percent stake.
On Friday the BSE Sensex closed at 3,656.77. Twenty-two out of 30 Sensex stocks ended in the red.
On the BSE, advancing shares topped declining ones by 629 to 654. On NSE, the winners beat losers by 313 to 363.
