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BSE, NSE see dismal week

The Reserve Bank of India's credit policy failed to make an immediate impact on the stock markets as a bearish trend was witnessed on the leading Indian bourses during the week ended October 24.

Analysts and traders attributed the downtrend to various factors like the record fall in the Hong Kong stock market and currency crisis in Southeast Asia, lower half-yearly results by Bajaj Auto and TELCO, political happenings in Uttar Pradesh and New Delhi, and the Diwali holidays ahead in the next week.

Marketmen said that all these factors had kept the major market players away from the market, despite the market-friendly credit policy announced by the Reserve Bank of India on October 21

The BSE Sensitive Index fell sharply by 148.80 points to 3957.46 points as against the previous week's close of 4106.26 points. The total turnover on the BSE also reduced by Rs 3.4 billion to Rs 46.8 billion as against Rs 50.12 billion, while the broadbased BSE-100 Index moved down by 65.03 points to 1703.43 points against 1768.46 points.

Similarly, on the National Stock Exchange, the Nifty also drifted lower by 41.15 points to 1136.65 points against the last week's close of 1177.80 points. The Midcap Index of the NSE also fell by 33.15 points to 1270.55 points against the previous week's close of 1303.70 points.

The total turnover on the NSE came down by Rs 4 billion to Rs 104.4 billion as against Rs 108.4 billion.

Back on the BSE, the BSE-200 and Dollex Indices also declined by 7.91 and 6.37 points to 387.33 and 175.41 points over the previous week's close of 395.24 and 181.78 points during the same week.

The market opened on a firm note as most of the market players had made good purchases at the prime counters in anticipation of the favourable announcements from the RBI in its credit policy, the Sensex reported an increase of about 49 points in a single trading session.

However, the market witnessed downtrend from the second day following the announcements of poor results by automobile giants Bajaj Auto and TELCO. Bajaj Auto recorded a nine per cent less net profit and TELCO registered a sharp decline in its sales during the first half year ended September 30,1997.

The record fall in the Hong Kong market on Wednesday, also affected the market trend during the last three day's on the BSE and NSE. Marketmen said that the Hong Kong-based foreign funds sold heavily on the Indian bourses during the period resulting in a sharp fall in the indices in the two Bombay bourses.

The political developments also worried the market players when the cabinet decision to impose President's rule in Uttar Pradesh was rejected by President K R Narayanan. ''We thought it will create a further political crisis in New Delhi,'' said a leading BSE broker.

In the coming week, BSE will be working for only one day -- Monday, October 28. The market will remain close from October 29. The BSE will conduct a special 'moorat' trading session on October 30, which is Laxmi Puja Day, for about two hours and the bourse will be closed for next two days.

The long holidays ahead restrained speculators from take long-term positions, said brokers at the BSE.

Market leaders Reliance fell sharply by Rs 8 to Rs 395.00, State Bank by Rs 5.50 to Rs 271.50 , TELCO by Rs 10.75 to Rs 334.75, TISCO by Rs 16.50 to Rs 168.50 and Tata Tea by Rs 27 to Rs 404.

Cement giant ACC drifted lower by 132.75 to Rs 1200.50 during the week, while Bajaj Auto fell by Rs 9.75 to Rs 609.75, Cadbury declined by Rs 9 to Rs 260.50, Colgate moved down by Rs 17 to Rs 289.75, Glaxo eased by Rs 8.50 to Rs 438.25, Hind Lever by Rs 53.75 to Rs 1374.50, Hindalco down by Rs 28.75 to Rs 973.50, Indian Hotels dropped by Rs 9.50 to Rs 608.50 , ITC declined by Rs 18.25 to Rs 587, and Ponds was down by Rs 7 to Rs 1999.50.

UNI