Sensex down 73 pts; six top stocks at 52-week low

Mumbai, Oct 23: Stocks suffered a fresh setback, pushing the benchmark Sensex further down by over 73 points on the opening day of the acc...

Mumbai, Oct 23: Stocks suffered a fresh setback, pushing the benchmark Sensex further down by over 73 points on the opening day of the account on the Bombay Stock Exchange (BSE) today on sustained selling pressure from investors and foreign funds. Share prices of five top index stocks from the old economy group have touched their new 52-week low levels.

Stocks of State Bank of India (SBI), ICICI, Gujarat Ambuja, Larsen & Toubro, Mahindra & Mahindra and Telco have touched their 52-week low levels. SBI stock touched a low of Rs 155.50 before closing at Rs 155.95. ICICI closed at Rs 69.30 and the counter touched the day’s low of Rs 68.45. The second quarter results for ICICI have been much lower than the market expectation, analysts said, adding, “the slowdown in the economy is also a matter of concern as there is a feeling that the credit offtake might fall leading to a slower growth.”

Telco touched its 15-year low of Rs 68 before recovering marginally to close the day at Rs 69. “This price is one of the lowest price for Telco scrip in the last 15 years according to analysts tracking the company. Automobile major Mahindra & Mahindra too touched its 52-week low of Rs 135.10 and Gujarat Ambuja closed at a low of Rs 130.30.

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The market discounted reports of impressive growth in the Indian infotech sector and even a positive change on the American markets where the tech-laden Nasdaq Composite Index continued its upsurge rising by 65.54 points last weekend on the heels of a sharp spurt by over 247 points on Thursday.

Sensex, which initially responded to Nasdaq factor by opening better at 3709.54, later gradually moved downwards to the day’s low of 3608.36 before closing at 3619.53 as against last Friday’s close of 3692.75, netting a sharp fall of 73.22 points or 1.98 per cent. The BSE-100 Index also dropped sharply by 52.14 points to 1833.25 from previous close of 1885.39.

The market lacked the much-needed institutional support with foreign institutional investors (FIIs) generally remaining net sellers, dealers said, adding that operators also continued their unloading even on the first day of the settlement.

Operators were also unwilling to make fresh commitments in view of the three-day settlement from Monday to Wednesday with a brief trading session on last day on account of Diwali Festival, dealers said. In the specified group, 96 counters including 26 index related scrips registered sharp to moderate losses while 41 others showed gains.

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HFCL dipped by 123.65 to 1065.25. Infosys Tech was down by 192.60 at 6906.85, Global Tele by 86.30 at 1002.70, Satyam Computer by 17.75 at 327.30, BSES by 7.70 at 181.30, Dr Reddy by 40.90 at 1338.95, HLL by 2.20 at 170.95, HPCL by 8.10 at 105, Hindalco by 38.05 at 700.25, Mah & Mah by 9.80 at 135.25, NIIT by 61.95 at 1634.20, RIL by 8.55 at 287.30, SBI by 3.85 at 155.95, TELCO by 3.25 at 69 and TISCO by 4.55 at 96.60.

However, Zee Tele firmed up by 7.60 to 304.65, ITC by 3.0 to 747.05, MTNL by 1.70 to 133.45, Sterlite by 14.30 to 139.90 and Digital Equip by 39.25 to 416.65.

Dealers said the two big FIIs-Janus Fund and Schroeder-were believed to be heavy sellers in HFCL, Global Telesystem stocks. A huge chunck was sold by these FIIs in these counters. While in ICICI and ICICI Banking counters selling by an off-shore fund led to fall in the stock prices. Analysts are not happy with their quarterly numbers.

Sterlite zooms ahead of board meet
MUMBAI:On a relatively dull day, Sterlite stock was in good demand and the counter rose 11.39 per cent at Rs 140 on the reports that the company’s board would meet on October 31 to consider buyback of shares. However, the company has informed the stock exchanges on the proposed board meeting only after trading hours. “It seems some market operators seemed to have advance information about the buyback plan,” said a market source.