Volumes Take The Plunge On Dull Trading
With the Budget merely a fortnight away, one expected more activity on the Dalal Street than what was witnessed in the past week. The week witnessed one of the dullest ever trading in the current year. The volumes were pathetically low and the Sensex moved in a narrow range. Surprisingly, the punters did not take up positions and decided to wait for more opportune moments.
However, the Bombay Stock Exchange Sensitive Index crossed the so-called psychological level of 3500, and closed the week at 3521.99 points, gaining 78.44 points over the week. For a change, the week saw more activity in the `B' group scrips. Many scrips, including Exide Industries, saw hectic activity in the past week. The unexpected calm not only confused the market players, it also kept them guessing on the future of the market.
On the first day of trading, the Sensex closed at 3443.55 points and then moved up by nearly nine points on Tuesday to close at 3502.27 points. On Wednesday the Sensex closed at 3483.48, off-setting the gain made on the previous day. On Thursday, it closed at 3492.65 points, gaining another nine points and on the last day it ended at 3521.99 points, gaining nearly 29 points.
The fall on Thursday was unexpected. It looked as if the pre-Budget rally was on. However, the slump in the Sensex indicated that the speculators were still active in the market, said a leading broker. On the other hand, the National Stock Exchange (NSE) Sensitive Index gained nearly 28 points in the course of the week. The Nifty, on the first day of trading, closed at 981.45 points, a gain up three points as against the previous close of 978.8. The Nifty, unlike the Sensex, moved in an uniform pattern and closed the week at 1009.45 points.
The market continued to be in the strong grip of domestic traders who have been very active in conducting inter-exchange arbitrage with activity at the hilt on the opening and closing day of the settlement. Absence of selling pressure at current levels helped traders to consolidate their positions.
However, investment activity continued to remain lacklustre except in four to five pivotals. ITC was one of the scrips which hogged the limelight last week.
Sources said the hectic activity was fuelled basically by the speculators. They (speculators) have now picked up ITC. Last week it was Reliance which generated a lot of interest, informed a dealer. The cement scrips too, moved up a bit with the market agog with rumours of hike in cement prices. Scrips like ACC, Gujarat Ambuja and L&T made impressive gains on the BSE. ACC, in fact, gained nearly Rs 130 on the BSE.
New Delhi: Heavy weighted stocks, led by ACC recovered on the Delhi Stock Exchange (DSE) during the week largely on fresh spell of buying by speculators and financial institutions coupled with some short covering. It closed with hefty to moderate gains spread over a broad front.
Marketmen said foreign institutional investors (FIIs), who were reluctant at the outset, later turned active and resumed their buying activity mostly in highly active stocks which pushed share prices further higher. Reports that the government was considering a cut in excise duty on steel was another encouraging factor which fuelled speculative buying towards the weekend, marketmen added.
On expectations that the forthcoming budget is likely to be growth-oriented and market friendly, bull operators indulged in massive buying and built fresh positions in speculative counters. ACC and BSI remained prominent on frenzied buying by speculators and FIIs.
The rise in the former was mainly attributed to expectations of some incentives for the cement industry while the latter firmed up on hopes that government might allow hike in FIIs investment from the existing 20 to 24 per cent.
With the improvement in the market sentiment, the volume of business also showed some improvement.
Mirroring the trends, the DSE Sensitive Index, strengthened on day-to-day rise in share prices, rallied to close at 751.55 points, showing a sharp rise of 22.99 points or nearly 3 per cent. ACC started on a firm note at Rs 1305 and continued to rise going up to Rs 1475 before settling at Rs 1435, showing a sharp rise of Rs 155. SBI traded heavily throughout the week largely on rumours that government was likely to enhance FII investment from 20 to 24 per cent and share prices flared up to Rs 288.90 and concluded at Rs 288.75, a whopping gain of Rs 21.55 or rise of nearly 8 per cent during the week.
Tisco, on brisk buying by FIIs and speculators shot up by Rs 11.20 to close at Rs 197.70. In the non-specified group shares, Flex Engineering, Jindal Iron, Jindal Strips, JVG Finance, Saw Pipes, and Tata Power displayed firmness on selective buying by speculators and investors.
Calcutta: Though budget uncertainties kept the volume of business at a reduced level due to general apathy to widen commitments, select speculatives fared better on the Calcutta stock exchange last week aided by fresh bull support which pushed their prices well above the previous weekend's closing.
The sentiment was helped partly by higher Mumbai advices but the general investors continued to move with caution without effecting fresh commitments.
With the government announcing hike in the prices of sugar and wheat there was anxiety to know as to the extent of rise to be effected in other administered prices, especially the petroleum products.
This, too, acted as a major cause for caution by operators virtually throughout the week in enlarging their holdings.
Coming towards the non-specified group shares Flex Engineering, Jindal Iron, Jindal Strips, JVG Finance, Saw Pipes, Tata Power, Saraswati Industrial Syndicate, HDFC Bank, Colgate, Carrier Aircon, Oil Country Tubular, Shilpax Laboratories, Flex Industries, IDBI, JVG Departmental Store and Goga Foods displayed firmness on selective buying by speculators and investors.
Reliance Industries opened a shade higher at Rs 276 and stepped up further to Rs 278.75 on selective buying by profit takers trimmed early gains to close at Rs 274.80 but still showing a rise of Rs 1.30.