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Our Market Bureau
Mumbai, Oct 28: Bear liquidation amidst continuous bouts of sales pressed by institutional players saw the BSE-30 share Sensitive index fall below the psychological benchmark of 2,913 points to close at 2,832.95 points registering a net loss of 62.80 points.
According to market observers, the initial euphoria on the buy-back of shares vanished completely with participants raising queries on the stringent guidelines which would be framed by the regulator.
"Bear liquidation has been considerable, making it difficult for the index to breach the 2,900 level. However, technical charts signal a correction," said Neel Dalal, BSE broker.
Institutional sell off seems to have been triggered off at the counter of MTNL, with the chairman of the Telecom giant making a statement to the effect that if the proposals of TRAI are implemented MTNL would register a 15 per cent fall in the revenue earnings.
Rumours of domestic institutions having sold huge chunks of pivotals like Telco, MTNL and HLL unnerved the marketplayers. While FIs sold huge chunks of stocks worth Rs 32 crore, FIIs were net sellers to the tune of Rs 16 crore only.
Sentiments further dampened at the kerb when rumours of institutional sales was confirmed by the figures released by the bourses.
Although on the local front, FIIs sold a meagre chunk, the falling indices of the GDR markets are reflective of the huge sales pressed at the GDR markets. The Skindia GDR index shed 3.20 points to trade at 523.33 points, with GDRs of ITC, Larsen, SBI, Reliance and Telco declining by over 4 per cent on an average during mid day session.
On the local front, ITC continued to be traded in the band of Rs 713 and Rs 736 to finally close at Rs 716. According to technical analysts the scrip has entered the corrective phase where it could bounce back to Rs 750 levels given the fundamental factor of its excellent performance during the second quarter. ITC GDR is currently quoting at a premium of 13 per cent at $ 19.25.
Line operators of Calcutta have been rumouredto have played a significant role in propping up the price of ITC to a high of Rs 750 on the NSE on October 27.
Hindustan Lever was traded in the band of Rs 1,604 and Rs 1,648 amidst thin trading volumes.
According to market sources, broking outfit of HSBC and Credit Lyonnais were rumoured to have sold huge chunks of MTNL, ITC and Telco. However, British Coal Minus fund, pension fund was reported to have placed buy orders at the counters of MTNL, Novartis, Telco, ITC and Infosys.
It was yet another day of cross deals on the BSE, with over 15 deals reported on the bourse. Among the pivotals ITC registered three cross deals of 7,900 shares, 4,400 shares and 16,000 shares each at a price of Rs 728, Rs 718.50 and Rs 734.10 respectively. ICICI witnessed a phenomenal volume of 68,600 shares at the negotiated segment which was transacted at a price of Rs 41.29. HLL also registered a deal of 11,700 shares at the price of Rs 1,627, while in the open market the scrip was traded in the band of Rs 1,601 and Rs1,637.
Satyam Computers which entered the no-delivery phase on the NSE, was traded at a premium of over 3 per cent on the NSE at Rs 613.90, however closed lower at Rs 595.50 on account of profit booking. Over 95 lakh shares of Satyam exchanged hands on the local bourses.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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