The market ended higher on Monday, snapping its four-session losing streak, following bargain hunting in select heavyweights and Old Economy stocks.
Down by nearly 20 points at one point, the 30-share BSE Sensitive Index (Sensex) settled with a gain of 12.68 points at 2,936.71.
The NSE S & P CNX Nifty Index rose by 5.20 points to close at 929.50.
Pivotals like HCL Technologies and Cipla dragged their peers lower after disappointing quarterly results. While tech and pharma pivotals eased, buying support was observed for select Old Economy and fast moving consumer goods (FMCG) sector stocks. Renewed buying was observed in banking and public sector undertaking (PSU) stocks. Stock-specific activity was observed on side counters.
The quarterly results from India Inc. have largely been driving the market sentiment of late. The first batch of quarterly results, particularly from tech companies, has turned out to be disappointing. Yet, there were hopes of encouraging results from companies in the Old Economy segment.
Meanwhile, the foreign institutional investors (FIIs) resumed their purchases, putting in a net Rs 74.30 crore last Thursday, against an outflow of Rs 15.1 crore last Wednesday.
HDFC (up 4.05% to Rs 311.70) recovered on renewed buying support after a recent fall from the higher levels. The International Finance Corporation, the private sector funding arm of the World Bank, has approved a $200 million dollar-denominated loan to the housing finance major. Over 2.04 lakh HDFC shares were traded on the BSE.
GlaxoSmithKline Pharma (up 3.23% to Rs 310.05) ended higher recovering from the day's low of Rs 295 after the company announced improved results. For the quarter ended 31 March 2003, the company posted a net profit of Rs 35.09 crore (Rs 23.02 crore) on total income of Rs 268.37 crore (Rs 272.55 crore).
Zee Telefilms bounced back from a low of Rs 65.55 to a high of Rs 72.80 before settling at Rs 69.95, up 2.94% over its previous close, after the company announced improved results. For the quarter ended 31 March 2003, the Zee group posted a net profit of Rs 53.93 crore (Rs 52.83 crore) on total income of Rs 392.29 crore (Rs 338.84 crore). For the year ended 31 March 2003, the company's net profit stood at Rs 227.03 crore (Rs 194.60 crore) on total income of Rs 1,276.59 crore (Rs 1,155.45 crore). Over 46.58 lakh Zee Telefilms shares were traded on the BSE.
Hindalco (up 3.61% to Rs 618.85) firmed up on expectations of improved quarterly results. Over 79,000 Hindalco shares were traded on the BSE.
Heavyweights like Hindustan Lever (up 2.54% to Rs 139.45), ITC (up 2.23% to Rs 680.40), Reliance Industries (up 1.42% to Rs 271.95) and State Bank of India (up 1.22% to Rs 282.95) also contributed to the gains in the Sensex.
Tata group Old Economy pivotals like Telco (up 2.28% to Rs 154.45) and Tisco (up 2.42% to Rs 131.15) rose on bargain hunting after a recent fall from the higher levels.
PSU pivotals like HPCL (up 1.68% to Rs 275.60) and Bhel (up 1.61% to Rs 229.90) also gained ground on renewed buying support.
HCL Technologies (down 11.36% to Rs 138.85) lost ground following disappointing results. For the quarter ended 31 March 2003, the New Delhi-based Shiv Nadar group flagship posted a lower net profit of Rs 79.85 crore (Rs 131.74 crore) on total income of Rs 465.81 crore (Rs 408.99 crore).
Other tech pivotals like Satyam Computer (down 2.29% to Rs 160.25) and Infosys Technologies (down 0.80% to Rs 2,891.85) also ended lower on selling pressure following the disappointing performance of HCL Technologies.
Cipla (down 10.56% to Rs 627.30) ended off its day's low of Rs 561.10, after the company announced disappointing results last Friday. For the quarter ended 31 March 2003, the Mumbai-based pharma major posted a net profit of Rs 46.73 crore (Rs 61.71 crore) on total income of Rs 399.20 crore (Rs 396.36 crore). Over 3 lakh Cipla shares were traded on the BSE.
Other pharma pivotals like Dr Reddy's Laboratories (down 3.66% to Rs 871.75) and Ranbaxy (down 2.24% to Rs 651.35) also ended lower on selling pressure.
VisualSoft (up 0.59% to Rs 136.90) ended off its day's high of Rs 144 on selling pressure after a firm opening. The stock rose as by much as 5.80% in early trades following impressive results from the company last Saturday. For the quarter ended 31 March 2003, the company posted a net profit of Rs 8.42 crore (Rs 6.43 crore) on total income of Rs 34.28 crore (Rs 27.54 crore). For the year ended 31 March 2003, the company's net profit stood at Rs 32.23 crore (Rs 25.39 crore) on total income of Rs 126.61 crore (Rs 108.07 crore). Over 18.85 lakh VisualSoft shares were traded on the BSE.
Oriental Bank of Commerce (OBC) (up 10.91% to Rs 82.85) firmed up to touch a new 52-week high of Rs 84.50 after reports that the bank will pay Rs 50 crore to the Union Government as a move to reduce its share capital. Over 7.48 lakh OBC shares were traded on the BSE.
J & K Bank (up 5.93% to Rs 145.65) also gained further ground to touch a new high of Rs 150.50 amid hopes that the bank may announce a liberal bonus issue of equity shares along with its quarterly results next week.
IDBI Bank (up 5.59% to Rs 24.55) ended firm ahead of the announcement of its quarterly results.
Dredging Corporation (up 4.83% to Rs 257.35) ended off its day's high of Rs 285. The stock rose as by much as 16.08% earlier in the session following the company's impressive results. For the quarter ended 31 March 2003, the company posted a net profit of Rs 56.64 crore (Rs 36.98 crore) on total income of Rs 158.69 crore (Rs 158.54 crore). For the year ended 31 March 2003, its net profit stood at Rs 152.99 crore (Rs 101.56 crore) on total income of Rs 509.25 crore (Rs 501.53 crore).
Other PSU stocks like Shipping Corporation of India (up 5.78% to Rs 66.85), RCF (up 5.68% to Rs 23.25), Nalco (up 4.99% to Rs 83.15), State Trading Corporation (up 4.46% to Rs 87.90), Bharat Electronics (up 3.67% to Rs 246.90) and Bharat Earth Movers (up 3.12% to Rs 71) also gained ground.
Jindal Iron (Rs 90.45) was frozen at 10% upper limit of the circuit breaker ahead of the announcement of the company's quarterly results.The market is expecting the company to post bumper results on the back of firm steel prices in the first quarter of year 2003.
Exide Industries (up 7.58% to Rs 102.20) gained further ground to touch its new 52-week high of Rs 105 on sustained buying support after the company announced 1:1 bonus issue of equity shares along with impressive results last Friday. On consolidated basis, for the year ended 31 March 2003, the company's net profit stood at Rs 55.59 crore (Rs 30.89 crore) on total income of Rs 925.41 crore (Rs 827.24 crore).
Indian Rayon (up 3.77% to Rs 81.10) gained ground after the company announced its results. For the quarter ended 31 March 2003, it posted a net profit of Rs 17.79 crore (Rs 14.81 crore) on total income of Rs 335.58 crore (Rs 325.86 crore). On consolidated basis, for the year ended 31 March 2003, the company's net profit stood at Rs 38.49 crore on sales of Rs 1,724.38 crore.
Monsanto India (Rs 508.95) was frozen at 10% lower limit of the circuit breaker on selling pressure after the company said last Friday that it will buy back 3,28,478 equity shares at a price not exceeding Rs 575 per share, for an aggregate amount not exceeding Rs 18.89 crore from the open market.
Source: www.capitalmarket.com