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Anup Menon

A DAY after the Union Budget presented, the initial disappointment seems to have ebbed. In an eventful week, the stock market closed on a positive note. However, the underlying sentiment still seems to be uncertain, as Gujarat lay besieged by communal violence. The uncertainty and the bandh in the commercial capital led to lower volumes during the day.

The Bombay Stock Exchange Sensitive Index closed the day at 3678.75 points, up by around 116.44 points (3.27 per cent) over its previous close. The breadth of the market as measured by the ratio of stocks advancing to declines was tilted in favour of the bulls with 613 stocks advancing in value against 370 stocks that posted declines. The ratio of stocks touching new highs to new lows indicates a negative undercurrent with 14 stocks touching new lows compared to eight stocks that hit new highs. Total traded volumes stood at around 7.10 crore shares.

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 1178 points up by around 35.95 points (3.15 per cent) over its previous close. The market breadth was positive with around 441 stocks advancing in value against 214 stocks that posted declines. The ratio of stocks touching new highs to new lows treaded in neutral territory with four stocks touching new highs against five stocks that hit new lows. Total traded volumes stood at around 13.7 crore shares.

The stock of Reliance attracted some buying interest during the day. After the close of trading hours, the company informed the stock exchange that it plans to merge Reliance Petroleum with the company. The stock of Reliance Industries ended the day on a positive note at Rs 322.15, up by around 4.78 per cent over its previous close. However, volumes in the counter dropped from around 28.23 lakh shares to around 26.55 lakh shares.

The stock of Hindustan Lever was a major gainer during the day with investors factoring in a higher valuation for the stock on account of the reduction in excise duty proposed for shampoos, cosmetics and packaged tea. It closed the day at Rs 262.50, up by around 5 per cent over its previous close. Traded volumes improved to around 16.12 lakh shares as compared to 12.18 lakh shares traded on Thursday.

Despite the lower of import duties on cement, stocks in the sector gained during the day. The major gainers were Gujarat Ambuja Cements and ACC. The former gained close to 1.30 per cent to end the day at Rs 241.60. Close to 5.30 lakh shares changed hands during the day. The latter ended the day at Rs 176.35, up by around 7.86 per cent over its previous close. In contrast, volumes in the counter dropped from around 22.01 lakh shares to around 12.21 lakh shares.

The stock of Hero Honda attracted buying interest on expectations of a healthy sales growth rate in February. The stock closed the day at Rs 366.30, up by around 6.07 per cent over its previous close. Traded volumes dropped from around 1.41 lakh shares to around 0.89 lakh shares. After the close of trading the company announced that its sales for the month of February 2002 was up by around 44 per cent over February 2001.

Among the prominent losers during the day was the stock of Punjab Tractors. It closed the day at Rs 158.55, down by around 2.58 per cent over its previous close. Volumes dropped from around 0.86 lakh shares to around 0.30 lakh shares

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