Fmcg, Software Stocks Provide Some Shine

Sentiment in the market is expected to remain weak this week. According to brokers, there is not much by way of long position in the market.

The BSE sensitive index closed at 3211.31 points, showing a net gain of 40.01 points as against the previous week's close of 3171.30 points. The S&P CNX Nifty index closed at 931.40 against the previous week's close of 920.10.

With badla rates hovering in the range of nine per cent levels, operators will be comfortable building up fresh positions. "The market indices should move in a narrow range," commented a broker.

"Despite good results posted by HLL and ITC, there is no reversal of sentiment. Badla rates hovered around nine per cent. There is no sign of any kind of an economic revival. A section of the FMCG and software stocks are driving the rally. However, this is not going to last long," a dealer from a leading institutional brokerage said.

Meanwhile, renewed buying support by foreign institutional investors and continuous purchasing by operators propped up the sentiment last week.

The week started on a depressed note on a fresh turmoil in the South East Asian market due to the depreciation of the yen. This triggered a renewed selling pressure.

The on-going crisis in the Asian markets, rising inflation and concerns over the political scenario were the major factors behind the depressed mood of the FIIs, brokers said.

Despite a poor performance during the first quarter of the current fiscal, the FIIs bought about six lakh shares of Telco during the week, leading brokers said. The Tata Steel scrip touched its 8-year low price on limited purchasing by the investors.

New Delhi: The Delhi Stock Exchange emerged from a long bear phase last week, thanks to the short-covering spree by bear operators coupled with sporadic purchases from speculators over rumours of an ordinance on share buyback.

The domestic financial institutions, Unit Trust of India and Life Insurance Corporation (LIC) were the major buyers during the week and helped the market to recover, stock brokers said.

The recovery was more of a technical correction as the majority of stocks were in a oversold position, they said.

Encouraging results by Hindustan Level Ltd also buoyed the sentiment. The company has also recommended an interim dividend of Rs 9.60 per share.

While ITC posted better results for the first quarter of the current fiscal showing an 18 per cent rise in net profit to Rs 170 crore, Tata Tea net profits zoomed 400 per cent to Rs 39.10 crore.

However, Telco and Associated Cement Company (ACC) came out with dismal performances but were in line with market expectations.

The Delhi Stock Exchange (DSE) sensitive index, after opening lower at 685.67 points, quickly recovered in the later part of the week to close at 718.66 points, a rise of 16.11 points.

Infotech stocks and multinationals' scrips once again caught the fancy of the players, particularly foreign investors and notched up sizeable moderate gains. HLL was traded heavily throughout the week largely on account of its half yearly results. After opening higher at Rs 1610, the scrip soared to a new peak of Rs 1750 before winding up at Rs 1703.90, a substantial gain of Rs 64.90.

Nestle India started off on a firm note at Rs 422 but fell back temporarily to Rs 412 on selling by profit-takers. It, however, staged a strong recovery to touch the week's high of Rs 452 and concluded at Rs 447.50, an upsurge of nearly eight per cent at Rs 33.50.

Castrol India, mostly enthused by encouraging working results, also attracted buying support from some foreign funds. The scrip staged a comeback to Rs 548 and settled at Rs 537, showing a gain of Rs 12.

ITC, in volatile movements on hectic buying and selling by speculators and foreign investors, traded in the range of Rs 626 and Rs 665.90, and settled at Rs 635, a loss of Rs four against the previous close of Rs 639.

Calcutta: The market continued to be affected by the lingering impact of the Asian currency crisis as well as the developments in Japan, and witnessed a marked decline in turnover.

However, improved quarterly results of some of the companies provided some impetus, and a few counters witnessed upward trend on buying support.

The CSE-40 index closed at 1813.26 points against 1808.14 points in the previous week.

The closing rates are: ACC Rs 1282 (Rs 1243), ITC Rs 635.70 (Rs 640.70), Telco Rs 131.50 (Rs 126), L&T Rs 207.70 (Rs 210.80), HLL Rs 1695.20 (Rs 1640.60), BSES Rs 146.90 (Rs 142.90), OBC Rs 79.50 (Rs 48) and MTNL Rs 212 (Rs 210).

The non-specified shares also ruled dull with selected scrips moving up in the wake of improved quarterly working results. The BFL Software counter continued to stay firm and ended the week at Rs 495. The Bank of Rajasthan scrip also moved up and closed at Rs 50.50.

In the prevailing uncertain situation, investors are not expected to make fresh commitments, operators said. Marketmen were eagerly looking forward to measures by the government to improve the state of affairs in the capital market. Till such time, the current fluctuations would persist, they said. Chennai: Equities moved both ways and settled with notable loss or gain on the Madras Stock Exchange during the week ended July 31.

After a weak start, prices declined on selling pressure and closed with moderate losses. However, many counters recovered by mid-week and finished with small gains. The MSE index, which closed lower on Monday at 3530.93 points, recovered to settle at 3575.38 points as against the previous week's close of 3577.01 points, an overall loss of 1.63 points.

Amrutanjan, CG Vak Soft, D Square Soft, EID Parry, Harita Fin, ITC, Info Drive, Jumbo Bag, Karnataka Bank, L&T, Macmillan, Pentafour Communications, Reliance, RS Software, Satyam Computer, SBI, Silverline, Soft Solution, Telco and Tisco were actively traded. L&T drifted to Rs 204 as against the previous week close of 195. ITC moved down by Rs 2.90 to Rs 638, Karnataka Bank slipped by Rs 3.40 to Rs 65 and Macmillan was down by Rs 2.75 to Rs 497.75.