Tuesday, August 23, 2005

Correction, that emerged on the bourses since the Sensex's hitting above 7,900 in early trade on Thursday, extended hold today


The fall was across the board with a host of side counters losing ground.
The breadth was quite weak and losers outpaced gainers by a ratio of more
than 3.5:1.

The mood was cautious after data showed that FIIs turned sellers on the
bourses.
At 14:43 IST, Sensex was down 129 points to 7,620. The S&P CNX Nifty was
down 37.15 points or 1.5% to 2,330.70.
The sharp fall materialised ahead of expiry of August 2005 derivatives
contracts on Thursday (25 August 2005). The rollover of derivatives
contracts till Monday (22 August 2005) was quite low with regard to
individual stock futures, at just about 18%.
Latest data showed that FIIs sold shares worth a net Rs 77.10 crore on
Friday (19 August 2005). Recently, there was a slowdown in FII inflow.
Strong FII inflow is a key driver of the ongoing market rally. Inflow from
FIIs since July 2005 to early August 2005 was robust. In July 2005, FIIs
pumped in a huge Rs 7934 crore.

Market trades weak on profit taking


The BSE Sensex moved lower following a correction being witnessed in
heavyweight counters. Also, FIIs and mutual funds figures were negative on
Friday, as these institutions proved sellers on a net basis.
The BSE Sensex opened at 7764.86, and immediately reached 7770.83. But it
could not sustain the higher levels and plunged to 7718.47.
By 11:05 IST, the BSE Sensex was placed at 7730.07, down 21 points from its
previous close.
Total turnover, by this point, was at Rs 830 crore.
The advance-decline ratio was positive with 1,357 shares advancing and 977
shares declining. About 56 shares remained unchanged.
Among Sensex stocks, 12 were on the rise and 18 stocks were in the negative.
Among the gainers figured ITC (up 0.73% at 1700), Wipro (up 0.70% to Rs
367.5) and Tata Steel (up 0.56% to Rs 395).
The losers included Cipla (down 1.25% to Rs 352.95), Grasim (down 1.04% to
Rs 1,300) and Bhel (down 0.92% to Rs 1,044.70).
Patel Engineering topped turnover on BSE at Rs 93.78 crore, followed by
Reliance Industries (Rs 37.84 crore) and Reliance Capital (Rs 20.53 crore).
Among side counters, India Foils, Modision Metals, and Mysore Petroleum, all
flared up 20% each.
Modern Share (down 19.69%), Ondeo Nalco (down 11.3%) and Sacheta Metals
(down 9.96%) were big losers.
Falcon Tyres surged 10.84% to Rs 112 on volumes of 21,827 shares after
reports that JK Tyre and Swaraj Paul's Caparo have joined the race to
acquire the tyre company.
Nocil jumped 6.38% to Rs 34.2 on volumes of 12.11 lakh shares after the
company reported Q1 ended June 2005 net profit of Rs 9.62 crore on net sales
of Rs 101.39 crore.
Geojit was up 3.89% to Rs 142.9 after reports that its co-promoter Kerala
State Industrial Development Corporation has shown interest in acquiring UTI
Securities.

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