BOMBAY, 22 December 2002 — On Monday selling in IT stocks due to weakness in the US markets pulled the index down. It ended the day at 3,328.39. Tata stocks which had been gainers lost ground due to profit-taking. Reliance Industries and State Bank of India (SBI) also contributed to the Sensex weakness. On the other hand, Ranbaxy gained after the company received its third milestone payment of close to $7 million from Bayer AG of Germany. It has now received $22 million from a total of $65 million.
On Tuesday the BSE closed at 3,311.06. As per punters, this selling pressure on the bourses was instigated by the selling initiated by the foreign institutional investors (FIIs). FIIs pulled out a net Rs.227 million last Friday and inflows are likely to slow down in the next few days. Polaris Software was a major loser following reports that the company’s Chairman and Managing Director Arun Jain had been arrested by the Indonesian police in a commercial dispute between the Chennai-based company and a Jakarta bank. In pharma stocks, Orchid Chemicals was up after it acquired Mano Pharma for Rs.260 million in an all-cash deal.
On Wednesday the BSE closed at 3,333.31. Moody’s Investors Services may upgrade India’s rating by mid-February 2003. Pharma stocks continued to the biggest priority on the shopping list. Dr Reddy’s Labs was in the limelight following the favorable court ruling on a drug that the company proposes to launch in the US in August 2003. Ranbaxy also continued to attract buyers. In IT stocks, HCL Technologies was the “odd stock out” as it surged on news of restructuring within the Shiv Nadar group. HCL Infosystems’ software division is to be transferred to HCL Technologies and two equity shares of HCL Technologies (of Rs.2 each) would be issued for every nine equity shares of Rs.10 each held in HCL Infosystems.
On Thursday the BSE closed at 3334. A strong rally was witnessed in second rung stocks mainly on account of attractive valuations. Moreover, pharma stocks such as Dr Reddy, Cipla, Glenmark and Torrent Pharma remained gainers. Banking stocks, however, crashed after the government denied media reports that it was letting SBI exempt GDR receipts from the 20 percent FII cap. As a result, SBI nose-dived.
Domestic mutual funds were said to be massive sellers. Bank of India, Bank of Baroda and Corporation Bank also lost ground. BSES continued to attract buying on news that a bill to reform the power sector was tabled in parliament. PSU BHEL advanced due to handsome order book.
On Friday the BSE closed at 3,337.22. Most shares drifted lower but selective buying was seen in technology, FMCG and steel shares. TISCO turned out to be the biggest gainer in the 30-share Sensex following rumors that a hike in steel prices may be effected. MRF rose to Rs.940, following the company recording a sterling 175 percent rise in net profit for Q4.
Essar Shipping rose to the 20 percent upper ceiling on news that it had prepaid loans worth Rs.1,360 million to ICICI Bank.
Gold was at Rs.5,500/- per 10 gms and silver was at Rs.8,010/- per Kg.
US dollar was at Rs.48.00, pound sterling at Rs.76.95, euro at Rs.49.25, UAE dirham at Rs. 13.07, Kuwaiti dinar at Rs.159.76, Bahraini dinar at Rs.127.32, Saudi riyal at Rs.12.80, Qatari riyal at Rs.13.18 and Omani riyal at Rs. 124.67.
