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Sowmya Krishnan

THE Indian stock markets closed on a negative note pulled down by the software major Infosys Technologies. It was a dull day for technology stocks. However, old economy counters were in limelight on hopes of better earnings performance for the December 2001 quarter.

The benchmark BSE index, Sensex, closed 18.93 points lower at 3381.96 points. The market breath was negative as indicated by the advance to decline ratio and the new highs to new lows ratio. Declining shares were higher than advancing shares at 542 to 499. Ten stocks touched new highs and 28 stocks touched new lows. Around 9.76 crore shares were traded on the exchange on Thursday.

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The broader S&P CNX Nifty settled at 1098.20 points, down 4.60 points after touching a high of 1105.35 points. The number of gainers and losers were almost equal. 344 scrips lost and 341 scrips gained. New highs to new lows ratio at 3 to 5 indicated the domination of bears in the market.

The loss on account of Infosys Technologies was to a large extent mitigated by a rise in many old economy counters such as Tata Steel, Tata Engg and Shipping Corporation of India.

Sentiment in the technology stocks was affected by Infosys, which announced its results for the quarter ended December 2001. It reported a 24-per cent rise in net profits, which was very much in line with market expectations. This capped the rally built-up in the run up to the results. The stock finally settled at Rs 4254.20, down 3.98 per cent from the previous day's close. Other software stocks such as Satyam, Wipro, Rolta, SSI, Mascot Systems, DSQ Software, NIIT and HCL Technologies followed suit.

Pentamedia Graphics bucked the sectoral trend and raised 6.46 per cent to close at Rs 74.95. The stock perked up on news that it had tied up with Vivendi Universal's Indian unit for the production and marketing of its latest animated film. Traded volumes surged to 6.5 lakh shares (5.6 lakh shares).

Aftek Infosys was another tech stock that appreciated. The stock last traded at Rs 366.50, up 9.29 per cent amidst rising volumes.

India Cements was also in demand after the company's board approved the sale of its entire 39.5 per cent stake in Shri Vishnu Cements. The stock rose as high as 17.4 per cent in early trade on expectations that the sale proceeds would improve profitability by reducing interest burden. The stock finally closed Rs 2.9 per cent higher at Rs 40.15.

Ranbaxy's share price soared 2.7 per cent after the company declared that exports for the year to December has increased 26 per cent to Rs 1030 crore from a year ago. The stock was in favour as revenue from exports could boost the company's earnings in the October-December quarter. The stock last traded at Rs 718.75. Around 2.3 lakh shares exchanged hands during the day.

Among the other old economy stocks that were in demand were core sector stocks such as Tata Engineering, Tata Steel, Hindalco and ACC.

Media stocks witnessed a mixed trend. Zee Telefilms witnessed bullish trend and settled 5.8 per cent higher at Rs 126.55. Padmalaya Telefilms rose 8.77 per cent to Rs 99.25. Traded volumes dipped to 2.8 lakh shares (4.4 lakh shares).

Media stocks that lost value were Balaji Telefilms and Creative Eye. Traded volumes dipped in both the stocks. Creative eye closed at Rs 32.25, down 3.15 per cent and Balaji Tele closed at Rs 351 (Rs 356.45).

Bajaj Auto, Dr.Reddy's and State Bank witnessed marginal erosion in their share price amidst falling volumes. Reliance Industries also ended down 1.34 per cent at Rs 323.85. Around 15 lakh Reliance shares exchanged hands during the day.

Sterlite Opticals appeared in the losers list. The stock dipped 2.55 per cent and ended at 166.35. Traded volumes also dipped to 8.4 lakh shares (14.15 lakh shares).

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