Financial Daily from THE HINDU group of publications
Tuesday, Sep 24, 2002
Columns - Sensor
Markets remain calm; few stocks active
THE stock market adopted a cautious stance on Monday's trading, unwilling to shed the jitters which had gripped it over the past few weeks.
The BSE Sensex remained largely unchanged, shedding a mere 3.07 points to close on Monday at 3021.28 points. Sustained selling pressure by the FIIs, absence of future direction on the Government's disinvestment programme and reduction of the rupee currency debt to `junk' status by Standard and Poor's have combined to spread bearishness in the markets. The Sensex opened for the day at 3030.65 points, touched a high of 3035.93 and a low of 3008.5 before closing for the day at 3021.28 points.
It is obvious that the markets have staged a recovery towards the end of the day, after shedding nearly 16 points compared to Friday's close. The gross turnover on the exchange dropped from Rs 1223.39 crore on Friday's trading to Rs 1067.82 crore during the day's trading. The advances to declines ratio stood at 0.67, with 569 stocks appreciating in value while 842 stocks logged declines.
Among the major gainers during the day were ICI India, CG Igarshi Motors, KPIT Infosystems, Colour Chem, Blue Dart Express, Wartsila India, Bharat Electronics, Dr. Reddy's Laboratories, Aztec Software, Hero Honda and ONGC.
ICI stock was one of the prominent gainers during the day, appreciating by Rs 6.65 to close at Rs 98.45. The trading volumes surged from 10,489 shares on Friday's trading to 22,512 shares. The sharp rise in price has to be seen in the backdrop of the decision by the board of ICI India to divest its catalysts business to Johnson Matthey Plc for a consideration of Rs 140 crore. This is based on approval from the shareholders of ICI.
The CG Igarshi Motors appreciated by Rs 3.70 to close at Rs. 49.85. Trading volumes, which have remained subdued, jumped from 255 shares on Friday's trading to 3,167 shares during the day.
The KPIT Infosystems appreciated by Rs 8.90 to settle at Rs 143.95. The trading volumes rose sharply from 19.44 lakh shares on Friday's trading to 21.03 lakh shares.
The Wartsila India stock moved up by Rs 4.95 to Rs 117.45. The trading volumes surged from 10 shares on Friday to 1,328 shares. This uptrend has to be seen in the light of the fact that Wartsila Technology, Finland and persons acting in concert are making a second open offer to mop up the remaining 12.5 equity stake held by the public. If the offer succeeds, the acquirer plans to delist the stock from the exchanges.
The Balaji Telefilms was the other prominent gainer. The company had announced a stock split of 1: 5. Post stock-split, the stock settled for day at Rs. 106, at least Rs 2 higher than the theoretical ratio. It had closed at Rs 520 on Friday's trading. The uptrend has also to be seen in the light of the fact that the RBI has approved the FII limit in the stock to 40 per cent.
Aztec Software appreciated by Rs 1.15 to settle at Rs 37.9. Trading volumes surged from 1.88 lakh shares on Friday to 1.98 lakh shares.
Among the significant losers during the day were Mangalam Cement, Pentamedia Graphics, C-Mac Centum, Himachal Futuristic Communications, Satyam Computers, Tata Engineering and Morepen Laboratories.
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