Stocks fall back after strong start

MUMBAI, MAR 27: After a strong start, pivotals on the Bombay Stock Exchange (BSE) reacted on profit-taking coupled with lack of follow-up ...

MUMBAI, MAR 27: After a strong start, pivotals on the Bombay Stock Exchange (BSE) reacted on profit-taking coupled with lack of follow-up support at the higher level. However select infotech, telecom, cyclical and pharma shares gained moderate ground on scattered buying support from local institutional investors. Sensex registered an intra-day fall of 140 points to close with only a small gain.

Sensex dropped from the day’s high of 5286.81 to 5126.35, before ending at 5146.30, showing a marginal gain of 4.88 points from the previous close of 5141.42. The BSE-100 index however, advanced smartly by 64.02 points at 3001.33 against last Friday’s close of 2937.31.

Brokers said the redemption pressure on account of financial year-end continued to restrict movements of the shares with only select shares from B and B1 group registering considerable gains. FIIs were very selective and scrip specific while the domestic institutions and mutual funds reportedly pressed sales in various counters. Pentafour Software, Aptech and Global Telecom by registered over eight per cent gain from their previous levels.

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Dealers said consumer products maker HLL was pulled down by institutional investor selling. The share which has been on the downtrend in the past five sessions, had jumped to a high of Rs 2,730 in morning deals before closing Rs 122.60 down at Rs 2499.90. The share has lost 16.5 per cent in the last six sessions, starting last Monday.

Infosys Technologies also fell on the back of weakness in its American Depositary Receipt at the Nasdaq exchange on Friday. It ended Rs 231.50 down at Rs 10,441.65. HLL and Infosys together contribute over 40 per cent of the total BSE Sensex index weightage.

However, the broad market was higher on start of account considerations at the Bombay exchange. Data from the Bombay exchange showed there were 1083 advancing issues, 567 declining issues and 117 unchanged issues. The total traded volume was 44.87 million shares.

Among other shares that were up were Rolta India which ended up Rs 44.25 at Rs 597.75. The firm said its board had approved the issue of American Depositary Receipts, Global Depositary Receipts or shares on a preferential basis to foreign institutional investors. Pharmaceutical firm Nicholas Piramal ended Rs 17.50 up at Rs 593.50. The firm said its board was meeting on March 30 to consider an international offering of American Depositary Receipts.

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Housing Development Finance Corporation (HDFC) which announced on Monday its joint venture with the Mahindra group for a real estate portal, ended Rs 13.25 up at Rs 425. Himachal Futuristic Communications (HFCL) ended Rs144.10 higher at Rs 2,140.10, boosted by the firm’s forecast of over a 150 per cent jump in its 2000/01 (April-March) turnover.

Dealers said the market was likely to remain weak on Tuesday, on end-account considerations at the National exchange, unless the index heavyweights bounced back.