BOMBAY, 13 July 2003 — The Indian stock markets had a roller coaster trading session this week. It was a week full of news and happenings. Disinvestment of public sector undertakings (PSUs), corporatization of the bourses, results from Infosys, all these together kept the bourses highly active throughout the week.
On Monday, selling pressure continued and the BSE ended with a loss of 9.81 points at 3,612.53. But the overall undertone in the market remained strong. Hindustan Lever and cigarettes major ITC contributed significantly to the fall of the Sensex. IT stocks were down on concerns that the sector’s Q1 performance may not be up to expectations.
Aluminum majors Nalco and Hindalco closed higher following reports that spot prices for alumina have touched $330 per ton. Selective buying is also seen in some steel and zinc shares. Auto shares also closed higher following fresh buying interest ahead of the Maruti listing.
On Tuesday, buying in the New Economy stocks helped the BSE close in the positive despite the selling in Old Economy and pivotal shares. The BSE ended the day with a gain of 17.15 points at 3,629.68. Buying support from foreign institutional investors (FIIs) helped the market recover.
In specific stocks, Tata Power was down after the Maharashtra Electricity Regulatory Commission (MERC) restrained the company from offering new electricity connections to retail consumers.
Birla Corporation saw profit-taking. The stock has gained earlier on reports that French cement giant Lafarge was interested in acquiring a equity stake in the company.
On Wednesday, the overall sentiment remained lackluster ahead of the announcement of Infosys Technologies’ Q1 results on Thursday. The BSE ended with a loss of 8.89 points at 3,620.79.
This was despite the overwhelming listing of Maruti on the bourses. Maruti on the BSE was listed at Rs.157, at a premium of 25.6 percent. On the NSE it listed at Rs.164.90, a premium of about 32 percent.
According to most analysts, Maruti’s listing price exceeded their expectations. For the short term it is expected to remain more or less at the same levels and in the longer-term, there is hope that the stock would rule at a premium by virtue of its being the market leader in its segment. Shipping Corporation of India plunged on selling pressure following fears that disinvestment of the center’s 51 percent equity stake in the company might get delayed further. There is news that following the success of Maruti, it may also take the IPO route.
On Thursday, Technology stocks pushed the Sensex to a new 16-month high in the morning, riding high on Infosys’ higher earnings forecast and better-than-expected results. Infosys net profit for the first quarter is up 7.33 percent at Rs.2.78 billion. Total income for the quarter has grown 5.89 percent to Rs.10.80 billion. Buoyed by this, the BSE settled with a gain of 58.84 points at 3,679.63.
On Friday, markets settled in negative territory following profit booking in technology and select Old Economy pivotals. The BSE ended with a loss of 3.37 points at 3,676.26. Of the 2,035 issues traded on the exchange, declines outnumbered advances with 1,123 losers and 831 gainers. 81 issues ended unchanged.
Gold was at Rs.5,265/- per 10 gms and silver was at Rs.7,845/- per kg.
US dollar against Indian rupee was at Rs.46.28, pound sterling at Rs.75.07, euro at Rs.51.97, UAE dirham at Rs.12.52, Kuwait dinar at Rs.153.07, Bahrain dinar at Rs.121.99, Saudi riyal at Rs.12.26, Qatar riyal at Rs.12.63 and Oman riyal at Rs.119.45.
