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Home > Business > Business Headline > Report

Sensex loses 23 points

January 06, 2003 19:17 IST

The market declined on Monday, as investors dumped stocks in the absence of buying support from foreign funds.

Recording its third straight fall, the 30-share BSE Sensitive Index (Sensex) settled with a loss of 22.65 points at 3,334.89.

The NSE S & P CNX Nifty Index shed 5.25 points to close at 1,084.35.

The sentiment appeared to be somewhat cautious ahead of the beginning of the earnings-reporting season as foreign institutional investors (FIIs) began 2003 on a sluggish note, with net sales of $5.9 million in the first two sessions.

Selling pressure in stocks was seen almost across-the-board, encompassing New as well as Old Economy stocks. Public sector undertaking (PSU) and banking sector stocks also lost ground in absence of fresh buying support. Pharmaceutical stocks managed to buck the overall weak trend in the market by posting modest gains. Stock-specific activity was seen on side counters.

MTNL (down 4.96% to Rs 86.20) lost further ground on sustained selling pressure amid fears that the company may be a loser in the ongoing undercutting in the telecom business by cellular service providers.

Last week, Indian cellular service providers cut national long-distance call charges. They cut mobile-to-mobile long-distance charges beyond 50 km to Rs 2.99 a minute, from a peak of Rs 9 a minute.

Other PSU pivotals like Bhel (down 1.76% to Rs 167.15) and HPCL (down 1.39% to Rs 287.40) also eased amid the uncertainty over the progress of the government's stalled disinvestment programme.

State Bank of India (down 2.40% to Rs 279), Reliance Industries (down 1.06% to Rs 284.85), Hindustan Lever (down 0.14% to Rs 179.75) and ITC (down 0.60% to Rs 672.10) also accounted for the weakness in the Sensex.

ICICI Bank (down 2.56% to Rs 133.35), Tisco (down 2.25% to Rs 145.65), Telco (down 2.27% to Rs 157.40) and L & T (down 1.93% to Rs 200.85) were also among the major losers.

Cipla (up 2.55% to Rs 932.35) firmed up on sustained buying, following hopes of improved quarterly results.

Ranbaxy (up 1.38% to Rs 619.65) ended higher, on hopes that the company may raise its earnings target for the current year. According to market buzz, the new earnings target is likely to be much higher than present projections, backed by a slew of positive developments.

Dr Reddy's Laboratories (up 0.94% to Rs 921.60) also ended higher on selective buying, after the company launched Ibuprofen in the US generics market under its brand name. The company has also commenced shipment of prescription Ibuprofen tablets 400 mg, 600 mg and 800 mg to the US.

HDFC (up 1.68% to Rs 360.25) rose, after the company sold its around 6% stake in the BPO company, Spectramind, to Wipro for Rs 26.40 crore.

Moser Baer (up 16.38% to Rs 176.90) firmed up, after the company announced that the European Commission (EC) has proposed to terminate the anti-dumping proceedings against the company with respect to the manufacturing of recordable compact disks (CD-Rs).

Silverline (down 11.60% to Rs 17.90) crashed, after reports that the Punjab National Bank has served a 60-day notice to the tech company under the Securitisation Bill. The bank has said that it would attach a large residential complex in Mumbai's suburb of Andheri, if the company failed to repay an outstanding loan of Rs 4 crore.

Non-Sensex frontline tech stocks like i-flex Solutions (down 4.36% to Rs 839.80), SSI (down 2.74% to Rs 97.70), Digital GlobalSoft (down 1.46% to Rs 622.10) and Mascot Systems (down 0.77% to Rs 148.20) lost ground on selling pressure.

Hughes Software (up 2.31% to Rs 198.90), Wipro (up 1.68% to Rs 1,667.90), Polaris Software (up 90.77% to Rs 163) and NIIT (up 0.55% to Rs 181.65) ended with modest gains on selective buying, in an otherwise subdued market.

VSNL (down 2.62% to Rs 93) slipped, following reports that cellular operators, which slashed national long-distance rates only last week, now plan to make big cuts in international call charges. As per reports, cell firms plan to slash international call rates by 62.5% to Rs 9 per minute, from Rs 24 per minute charged for calls made to the United States, Europe and the Middle East.

Non-Sensex pharma stocks like Torrent Pharma (up 4.75% to Rs 219.30), Wockhardt (up 3.87% to Rs 476.95), Aventis Pharma (up 1.54% to Rs 296.50), Merck (up 1.81% to Rs 261) and Lupin (up 0.76% to Rs 145.60) ended with gains on selective buying, in an otherwise subdued market.

Tata Coffee (up 7.92% to Rs 79) gained further ground, recovering from the day's low of Rs 71.55 on sustained buying, following reports that the company is close to finalising a deal to merge the speciality coffee chain, Barista Coffee Company.

PSU stocks like Neyveli Lignite (down 4.51% to Rs 24.35), Bharat Earth Movers (down 2.34% to Rs 77.15), Kochi Refinery (down 2.33% to Rs 16.80), BPCL (down 1.86% to Rs 226.55) and Shipping Corporation (down 1% to Rs 64.05) lost ground amid the uncertainty over the progress of the government's disinvesment programme.

Engineers India slipped from an intra-day high of Rs 295 to Rs 283.05 before settling at Rs 284.35, down 1.49% from its previous close.

Bank stocks like Canara Bank (down 6.36% to Rs 46.35), Punjab National Bank (down 4.73% to Rs 60.40), Bank of Baroda (down 3.63% to Rs 67.75), Andhra Bank (down 3.41% to Rs 19.85), Vysya Bank (down 3.08% to Rs 242.10) and Federal Bank (down 2.75% to Rs 83) lost ground on selling pressure, after recent gains.

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