The Hindu Business Line : Sensex slips on negative sentiments

NEGATIVE sentiments continued to prevail in the markets as the benchmark BSE Sensex closed Thursday's trading on a negative note. The sharp fall in the key index heavyweights Reliance Industries and Infosys Technologies dragged the index down by 44.66 points (0.78 per cent).

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The index opened the day's trading at 5710.56 points, about three points lower than the previous day's closing. It declined throughout the day and reached the day's low of 5626.41 points. Despite the buying interest, during the last hour of the day's trading, the index closed at 5668.43 points.

On the BSE, most of the indices, barring BSEPSU and BANKEX, closed the day on a negative note.

On the NSE, the 50-stock Nifty was down 7.6 points (0.42 per cent) to 1808.95 points.

On the BSE, of the total 1,829 stocks that were traded, 1001 advanced, 729 declined in value and the rest remained unchanged. On the Sensex, 16 stocks gained and the remaining declined.

Index heavyweights were a mixed bag . The stock of Reliance Industries fell 2.1 per cent to Rs 529.20 despite posing 28.9 per cent growth to its net profit in the quarter ending March 2004. Hindustan Lever fell by 0.6 per cent to Rs 143.95 on the back of sharp drop in its earnings in the recently concluded quarter. ICICI Bank, ITC and ONGC, however, remained firm.

Major losers among the Sensex constituents include Zee Telefilms (5.2 per cent), Dr Reddy's Labs (4.2 per cent), Hindalco Industries (5.6 per cent), Tata Steel (4.1 per cent) and Larsen & Toubro (4.6 per cent).

The stock of Industrial Development Bank of India closed lower after it registered a over 50 per cent decline to its net profit in the recently concluded quarter.

State-owned Indian Oil Corporation (IOC) plans to merge with itself its subsidiary IBP Company. The stocks of IOC and IBP were up 1.6 per cent and 5.7 per cent respectively.

The stock of Shahi Shipping was up 9.9 per cent to Rs 31.2. The company plans to issue bonus equity shares, to the existing shareholders, in the ratio of 1:1.

The stock of Herbertsons appreciated by 5 per cent to Rs 92.9. For the year ending March 2004, the company has declared a dividend of Rs 2 per equity share.

The stock of KPIT Cummins rose 3.6 per cent to Rs 286. The company has declared a 20 per cent dividend for the year 2003-04.

The stock of CESC rose 4.2 per cent to Rs 114.8 on the back of good earnings growth in the recently concluded quarter. The company has posted a net profit of Rs 17 crore during the quarter ending March 2004, as against Rs 2 crore in the corresponding previous period. The stock of Andhra Bank also rose 1.3 per cent to Rs 64.8 on the back of good earnings growth in the recently concluded quarter. However, the stocks of Indian Rayon (1.8 per cent) and National Aluminium Company (4.5 per cent) declined despite posting a good earnings growth during the quarter ending March 2004.

The stock of Mysore Cements rose 9.4 per cent to Rs 10.98. The company plans to raise funds, to the tune of Rs 12.2 crore, by issuing equity through the preferential route.

Coupled with sharp surge in trading volumes several cement stocks including Mangalam Cement (16.5 per cent), Prism Cement (12.7 per cent) and India Cements (10.8 per cent) registered gains.

Stock that registered huge trading volumes include SAIL, Power Trading Corporation, Petronet LNG, Satyam Computer, Union Bank, Maruti Udyog, SBI, Tata Motors and Reliance Capital.