Nod For Se Expansion Fails To Improve Trend

The reforms announced by Sebi last week did not have any significant impact on the market sentiment.

The Bombay Stock Exchange (BSE) 30-share index lost 102.09 points during the week. It closed at 3148.57 against the previous Friday's close of 3250.66.

Sebi's clearance for the expansion of the BSE On-Line Trading System (BOLT) failed to cheer the sagging market. The BSE brokers however, expressed satisfaction over the development.

The National Stock Exchange (NSE) witnessed a black out on October 30 as the bourse's satellite connection was affected. No trading took place on the exchange on that day.

According to NSE sources, the satellite, INSAT IIA, to which the communication signals are beamed moved around its own axis which resulted in the receiving signals being transmitted into outer space.

 

However, trading resumed the next day and the bourse witnessed a fall in the index over the week by 30.38 points.

The NSE-50 finished the week at 906.62 as against 937 at the end of the previous week.

According to Parag Parikh Financial Services, the market opened on a buoyant note on week-end reports of massive FII buying.

However, profit-booking by local institutions and FIIs weakened the market during the later part of the week.

The bourses did not witness any FII buying. In some select counters FIIs were even sellers.

"The market did not witness any significant activity from institutions as they are still waiting for the right price. The trading activity was more or less speculative with no aggressive buying or selling by domestic or foreign institutions," a dealer at a leading institutional brokerage said.

Trading activity on bourses was restricted largely to select pivotals as a majority of them lost ground during the week. The badla trading on Saturday witnessed dealings in 60 stocks as against 32, due to the transfer of 28 scrips to the specified category.

The stocks which witnessed ulta badla included BSES (Rs 2.53), Castrol Industries (Rs 6.96), Dr Reddy's Laboratories (Rs 3.70), and Gujarat Ambuja Cement (Rs 5.84).

Marketmen expect that the BSE will witness some increase in trading activity due to its expansion beyond the city limits.

"There are many investors who have invested their savings in B2 group stocks and who belong to upcountry regions. These individuals will get an exit route through this mode," a BSE broker said.

According to marketmen, the weeks ahead will continue to witness movements in a narrow range. The market is expected to closely examine the pick up in credit. Industrial production will also be keenly watched. The arrests of the ex-chairmen and senior officials of ITC and politics is also likely to dampen sentiments on the bourses.

New Delhi: Increased selling by majority of heavy weights made the shares at the Delhi Stock Exchange plunge during the week.

Massive offloading by bull operators coupled with bear hammering was the main cause for the setback on the stock market.

Marketmen said that the arrests of the ITC officials following alleged Fera violations further dampened the sentiment. The good performance by Tisco also failed to enthuse the sentiments, the sources added.

Lack of FIIs and domestic institutional demand made the share values drop further. The weak upcountry advices and political developments also added to the woes.

The Delhi Stock Exchange Index fell by 24.21 points to settle at 713.76 during the week ended November 1, as against last week's close of 737.97 points. The week opened with a gain of 5.28 points to touch 743.25 points on October 28, but it dipped by 4.36 points to close at 738.89 on Tuesday (Oct 29).

It continued its fall on the following day to close at 731.39 losing 7.50 points.

On Thursday, it further declined by 3.86 points to close at 727.53 points. However, on Friday (Nov 1) the shares plummeted by 13.77 points to settle at 713.76 points.

The Securities and Exchange Board of India announced that it would stop vetting offer documents completely. It had only stopped vetting offer documents of exclusive rights issues, pure debt issues, issues by body corporates with three years' track record of dividend payment and issues proposed to be listed on the OTCEI.

The cement major, ACC was the major loser in the specified category looking down by Rs 39.95 to settle at Rs 1515 from the previous week's close of Rs 1554.95. Apollo Tyres shares went down by Rs 3 to close at Rs 121 from Rs 124 the previous week's close. Asian Tyres scrips came down by Rs 6.50 to Rs 252 at close.

ITC also lost Rs 13 to close at Rs 297 from 310 the previous week. ITC Hotels scrip also lost Rs 9.05 to settle at Rs 121 from Rs 130.05 the previous week. Larsen and Toubro's shares came down by just Rs 2.85 to close at Rs 222.15 from Rs 225 the previous week.

There was a marginal decline in Nestle India's share which lost just Rs 3.90 to close at Rs 222.10 from Rs 226 the previous week. 12.55 the previous week.

Calcutta: Bearish sentiments prevailed on the Calcutta Stock Exchange (CSE) due to the deteriorating political situation.

Besides, the dwindling buying support of the foreign institutional investors (FIIs) and domestic institutions and the also acted as a dampener and aided the downward slide at the local bourse, said a senior Calcutta broker.

"The fall at the bourse was further fuelled by the countrywide raids on ITC by the Enforcement Directorate and the alleged involvement of Reliance Industries and Essar in the Jharkhand Mukti Morcha bribery case," he said.

The 51-scrip CSE index, which closed at 435.67 points the previous week, opened lower at 434.97 points on Monday and continued to slide during the week. It settled at 423.21 points last Friday.

The ITC stock opened higher at Rs 316 over its previous week's close at Rs 313.25, and touched a high of Rs 322.50 on Tuesday. However, it declined and finished lower at Rs 297 on Friday.