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Nervous operators get into defensive mode

Anup Menon

NEGATIVE sentiment prevailed in the bourses on rising uncertainty over the prevailing tension between India and Pakistan. With the prospects of a war looming large, the bears were "trigger-happy", forcing the bulls to stage a hasty retreat. The bear grip on the market strengthened as they managed to induce some selling pressure in select index heavy weights such as Wipro, Ranbaxy and ACC.

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The Bombay Stock Exchange sensitive index (Sensex) closed the day at 3131.78 points, down 44.08 points (1.39 per cent) over its previous close. The breadth of the market as measured by the ratio of stocks advancing to declines was heavily tilted in favou r of the bears with 696 stocks declining in value as against 352 stocks posting advances. The ratio of stocks touching new highs to new lows also indicated negative sentiment. Only six stocks managed to touch new highs as against 46 stocks that hit new l ows. Traded volumes stood at around 8.15 crores.

The trend at the National Stock Exchange was in line with that of the BSE. The benchmark S&P CNX Nifty closed the day at 1020 points down by around 14.25 points (1.38 per cent) over its previous close. The market breadth was negative with 427 stocks decl ining in value as against 206 stocks that posted advances. The ratio of stocks touching new highs to new lows also indicated negative sentiment. Only one stock managed to post a new high as against four that hit new lows. Traded volumes stood at around 1 4.15 crore.

There was some buying interest in select stocks in the pharmaceutical industry. Major gainers include Wockhardt, Aventis Pharma, Glenmark Pharma and Pfizer. HCL Technologies, Mastek and Visual Soft were among the select stocks in the technology industry that managed to post gains. Other gainers included United Breweries, Shipping Corporation of India, IBP, Sri Adhikari and Sterlite Industries. The stock of Shipping Corporation of India ended the day on a positive note on news that the Government is offe ring a 51 per cent stake to a strategic investor. It closed the day at Rs 29.20, up by around 7.55 per cent over the previous close. Volumes surged from around 35,000 shares to around 1.2 lakh shares.

Sterlite Industries attracted some buying interest on news that the company's board is planning to meet on Friday to consider a buyback. The stock closed at Rs 122.45, up by around 5.15 per cent over Wednesday's close. Volumes in the counter surged from around 1.09 lakh shares traded on Wednesday to around 1.78 lakh shares. Among the major losers were technology heavyweights Infosys Technologies, Wipro, SSI, Polaris Software and Hughes Software. Cipla, Ranbaxy Labs and Dr Reddy's laboratories were among the few stocks in the pharmaceutical sector that witnessed selling pressure. Cement companies, ACC and Grasim were also in the losers' list. Other losers included Reliance Petroleum, Hindalco, BPCL and SBI.

The stock of Reliance Petroleum has been under pressure over the last few trading sessions on worries over the possible closure of the company's plant in Gujarat given its proximity to the Pakistan border. The stock ended the day down by around 5.35 per cent at Rs 25.65. Volumes more than doubled with close to 15 lakh shares changing hands during the day.

Bears hammered the stock of Wipro on news that the company has laid off some of its employees. The stock closed the day down by around 12 per cent at Rs 1,455.15. Volumes surged from around 10 lakh shares traded on Wednesday to around 19 lakh shares.