The Hindu Business Line : Sensex crashes as blue chips suffer

THE benchmark mark indices opened on a marginally positive note but subsequently went on to a continuous slide into the red. The Sensex registered its steepest fall since January 17.

The fall was more evident towards the end of the day's trade; investors seemed to have cashed in on the gains registered in the recent weeks following the good quarterly earnings performance announced by many companies.

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The BSE Sensex opened higher at 6652.33 but ended in the red at 6535.17, down 83.06 points from Friday's close of 6618.23. The fall in blue chips Infosys, Reliance, HDFC and HLL was instrumental in pulling the Sensex down. The S&P CNX Nifty closed at 2055.10 points down 1.1 per cent from Friday's close of 2077.95.

The fall could be attributed to the cautious atmosphere that prevailed among the investors, as could be seen from the decline of 26 stocks on the Sensex. In the category `A' for every two stocks that advanced three registered declines. However, in all other categories a majority of stocks logged advances. Satyam Computer remained unchanged at Rs 404.25.

Among the Nifty, the significant gainers were ABB, Shipping Corporation of India, Indian Hotels and Tata Motors. The losers were BPCL, Hindustan Petroleum, ACC, Oriental Bank of Commerce and Hindustan Lever.

Outside the benchmark indices, the major losers were Moser Baer, IFCI, Lupin Laboratories, Indian Overseas Bank, Syndicate Bank and TVS Motors.

The stock of Associated Cement Companies registered a decline to end Monday's trade at Rs 365.50, down Rs 10.15.The stock reached an intra-day high of Rs 375 higher than Holcim's open offer price of Rs 370; earlier the Swiss major had announced its unwillingness to increase the open offer price.

The stock of Infosys registered a sharp fall of Rs 51.40 from Friday's close, to end the day's trade at Rs 2,029.30, amidst market information that the company may defer its sponsored ADR issue originally scheduled for March. Nearly seven lakh shares were traded on the BSE. The company however denied the reports.

Stocks of steel companies registered gains on expectations of a rise in product prices. The stocks of Jindal Iron and Steel and Jindal Vijaynagar Steel rose sharply by 5.09 per cent and 6.49 per cent. The rise has to be seen in the light of the merger proposal, which would result in synergy of operations. The stocks closed at Rs 380.75 and Rs 18.05.

The trading on the counter of Matrix Labs was firm after the company had announced a strategic alliance with MCHEM Pharma group of China; this arrangement will help Matrix to backward integrate into China for the manufacture of intermediates and will help to consolidate its position as a major supplier of Active Pharmaceutical Ingredients worldwide. The stock rose 6.56 per cent to close at Rs 181.90.

Others pharma stocks such as TASC Pharma, Wockhardt, Dishman Pharma and Themis Medicare also traded higher on buying interest.

Last week, the Government had cleared the National Electricity Policy, which seems to have created interest on the power stocks such as ABB, Alstom, Crompton Greaves and Siemens. The shares of National Thermal Power Corporation touched a new 52 week high Rs 93.70 before closing at Rs 92.60. Buying interest could be seen in the stock; about 38 lakh shares were traded on the BSE.

The stock of Balaji Distilleries hit the upper circuit filter at Rs 9.46; reports that United Breweries buying out the former's brewery division, which has not been doing well, seemed to have triggered interest. Buying interest was evident in the nearly six-fold volume trade compared to that of Friday.

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