The Hindu Business Line : Q2 nos dampen sentiment

LUMAX Industries, an automotive component company manufacturing lamps, was down sharply for the second day in a row. It closed 6.89 per cent down at Rs 98 on the BSE with volumes of 23,382 shares and on the NSE, it closed at Rs 104.75, down 4.87 per cent with volumes of 57,823 shares. In the last two days, the stock is down 25 per cent.

Dealers said the sharp fall in the stock was due to the second quarter results, which were below market expectation. The company's net profits were down to Rs 21.5 lakh for September quarter compared to Rs 2.65 crore in the corresponding quarter of last year.

Dealers said the fall in profit is due to rise in inputs cost for the company and this could not be passed on to the customers due to increase in competition.

Low rollovers in F&O

THE low rollover in the derivatives market led to further selling on Friday. Dealers said the low rollover was due to the likely uncertain investment environment in the next few weeks.

Stocks that saw low rollover compared to previous months include SBI, Reliance Industries and VSNL.

Another reason for low rollover was long weekend next week and very few market players want to take view on the market for this period. The talk is that several of the market players offloaded their position on the last day of trading. Next week will have just two full trading sessions, Monday and Wednesday. Market will remain closed on Thursday and Friday.

Gains despite SEBI missive

IFSL, a company in which SEBI has debarred the promoters (for stock price manipulation) and some other investors, has been on upward move in the last few days. In fact on all these days, the stock is locked in 10 per cent upper circuit. On Friday, the stock closed at Rs 6.95 with volumes of 2.20 lakh shares and at close there were buyers for 2.04 lakh shares.

The talk is that the rise in the stock price is being done to provide exit route to some of the big players, especially some FIIs.

Earlier this week, Citigroup had sold shares in the market. The stock has been continuously falling in the last one month from Rs 35 to current levels. Dealers said most of the brokers have asked their clients not to trade in the stock of IFSL and several dealers were surprised over the upward movement in the stock price despite no announcement either from the company or SEBI.

Virendra Verma

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