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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (4363)	5/25/1999 10:32:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

MarketWatch May 25,1999-->Pharmaceutical, FMCG Shares In Limelight Stock indices improved further on the bourses on account of institutional activity in the selective counters. Both domestic as well as foreign institutional investors were understood to be selectively active on cyclical as well as defensive counters. Operators also subscribed to the renewed optimism of the institutional investors and made fresh purchases in the cyclicals and commodity counters. Arbitrage business was the highlight of the last day of the settlement on the National Stock Exchange (NSE). With a host of securities entering into no delivery period on the NSE for the purpose of compulsory dematerialisation, the difference in the prices in some scrips was as high as 5 to 6 per cent. Institutions as well as high networth individuals with substantial holdings in demat form were understood to be taking advantage of the opportunity and making a killing. However the volumes, although better than Monday's, were relatively poor. A renewed institutional interest was seen on the pharmaceutical and Fast moving consumer goods (FMCG) counters on the bourses. Hindustan Lever spurted towards the closing on short covering. The ITC counter whose performance for the year 9903 has been not as good as expected, lost ground. The Tata and the Birla group shares were in the limelight following institutional interest. Stock indices continued to gain. The BSE 30-Share Sensitive Index (Sensex) opened steady at 4029.24 and moved in narrow range amidst lower volumes. During the day, it touched a low of 4018.67 and a high of 4075.39 before settling at 4060.08, gaining 31.1 points over its previous closing of 4028.98. The BSE 100-Share National Index (Natex) gained 17.97 points over its previous closing of 1738.92 to settle at 1756.89. ITC's results were the major disappointment of the day. Against the expectations of Rs 640 cr, the tobacco FMCG ended the year 9903 with a net profit of Rs 623 cr on a sales of Rs 3515 cr. The scrip price declined from a high of Rs 1120 to Rs 1068.55 before settling at Rs 1074.90, down Rs 38.40 from its Monday's closing on the BSE, even as the expectations of bonus issue do not materialize. State Bank of India was weak for the better part of the day and touched a low of 256.40 before improving to settle at Rs 264.50. Hindustan Lever recovered from a low of Rs 2275 to settle firm at Rs 2330, a gain of Rs 40 over its previous closing. Reliance Industries recovered to touch a high of Rs 174.30 before settling at Rs 170.10. Tata group shares bounced back smartly after Monday's weakness, largely on account of institutional interest. Tata Power hit the upper limit of the circuit breaker at Rs 84 before settling at Rs 83.90. Others like Tata Steel (Rs 114.60), Tata Engineering (Rs 184.80), Tata Hydro (Rs 65) Tata Chemicals (Rs 72.30) and Indian Hotels (Rs 345) were also firm. In commodity / cyclical counters, Indian Rayon (Rs 95.30) hit the upper limit of the circuit breaker and other Aditya Birla group companies such as Grasim, Hindalco and Indo Gulf Corp were firm on renewed institutional interest. Auto major Ashok Leyland (Rs 58.70) continued to hit the upper limit of the circuit breaker on the BSE on impressive performance for 9903. Voltas (Rs 94), Excel Industries (Rs 160.90), Orchid Chemicals (Rs 130.15) etc. also hit the upper limits of the circuit breaker on the BSE. Pharmaceutical shares also attracted a renewed institutional interest. Counters like Glaxo (Rs 759), German Remedies (Rs 883.85), E Merck (Rs 585), Parke Davis (Rs 335), Hoechst Marion Roussel (Rs 586), Burroughs Wellcome (Rs 730.50), Smithkline Beecahm Pharma (Rs 383.35), Rhone Poulenc (Rs 1344.75), Cipla (Rs 1375), Ranbaxy Laboratories (Rs 646), Nicholas Piramal (Rs 351.80), Unichem Loboratories (Rs 210), Sun Pharma (Rs 513.80) were firm on institutional buying. FIIs were also active on select FMCG counters like Indian Shaving Products (Rs 1430.95) and Procter & Gamble (Rs 1106.05), which hit the upper limits of the circuit breaker. Others like Colgate, Smithkline Beecham Consumer Healthcare, Cadbury, Reckitt & Colman etc. were also firm. Mixed trends were observed on the software counters. IDBI hit the lower limit of the circuit breaker at Rs 35.15 on poor performance for year ended 9903 before settling at Rs 36. Raymond's also lost ground and closed lower at Rs 95 on profit booking. Other major losers included Morepen Laboratories, Zee Telefilms, Indal, Housing Development Finance, BHEL, MTNL, Grasim, Bausch & Lomb, ABB, TVS Suzuki, Bajaj Auto etc. Encouraged by the renewed FII investments on the bourses, players appear to be somewhat optimist with caution. The general feeling is that the markets will remain in the range of 4000-4100 unless the fresh FII buying continues. Technically, the market is firm and may cross the recent high if Sensex manages to cross 4090 level, feel chartists. (Courtesy:CapitalMarkets)