Financial Daily from THE HINDU group of publications
Friday, Oct 25, 2002
Columns - Sensor
Concerns over earnings hit sentiment
WITH a 40.91-drop on Thursday, the Sensex registered a fourth consecutive day of decline. After opening at 2944.28, the index managed to scale to a high of 2958.01 before closing at 2908.05, just a shade above the day's low of 2906.2. The NSE Nifty dropped 10.45 points to 946.9.
The weak market sentiment was undermined by concerns pertaining to corporate earnings growth. Cigarette major ITC came up with its second quarter performance during the day's trading. The market does not appear to be too enthused by the performance if the sharp drop in the ITC stock is any indication. ITC dropped Rs 11.74 to end the day at Rs 636.60. Trading volumes of 2.21 lakh shares were recorded during Thursday's trading. Similar to Wednesday, the weak trend in Hindustan Lever and Reliance Industries played a key role in pulling down the index.
Ahead of the announcement of the financial performance, the share price of Hindustan Lever dropped by Rs 3.65 to close at Rs 167.7. The company's board is scheduled to meet on Friday to consider the third quarter performance.
Pharmaceutical majors Dr Reddy's Laboratories, Cipla and Ranbaxy Laboratories had to contend with an erosion in their market capitalisation after Thursday's trading. The share price of Dr Reddy's Laboratories dropped Rs 17.5 to settle at Rs 726.40. Trading volumes of 1.26 lakh shares were recorded on Thursday as opposed to 1.4 lakh shares posted the previous day.
While the top rung pharma companies listed above had to contend with a decline in share price, the likes of Nicholas Piramal, Sun Pharma and Aurobindo Pharma managed to sneak into the list of day's gainers. The share price of Nicholas Piramal edged up Rs 5.35 to Rs 218 while Sun Pharma went up Rs 12 to Rs 572.05.
Bajaj Auto, Castrol India and Hero Honda were prominent amongst the gainers from the 30 stocks forming part of the Sensex. The share price of Bajaj Auto registered a gain of Rs 9.95 to end the day at Rs 410.20.
Indian Rayon, ABB, Balaji Telefilms and Apollo Tyres were prominent amongst the gainers .
Buoyed by improved financial performance, the share price of Indian Rayon perked up by Rs.4.5 to close at Rs.88.9. A little over 98,000 shares were transacted in the Indian Rayon counter as opposed to 15853 shares recorded the previous day.
After touching a low of Rs.122, the share price of Apollo Tyres staged a sharp recovery to close at Rs.130.5. This represents a rise of Rs.5.45 over Wednesday's close of Rs125.05. Trading volumes of 5.42 lakh shares were recorded for the day.
After a weak trend in the last couple of days, the share price of both ABB and Balaji Telefilms recovered on Thursday. The share price of ABB shot up by Rs 15.05 while Balaji Telefilms posted a relatively modest rise of Rs 2.70.
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