Share prices drifted in a narrow range this week and was without direction following poor corporate results and the fear of imminent petroleum price hike. The Sensex lost 31.81 points to close at 3769.90 on Friday. However, it was higher by 16.40 points than the previous closing on Wednesday. The rally sparked off on Friday morning following gains recorded at NSE on Thursday proved short lived as operators squared up their position at the end of the settlement.

The market, though flat by the end of the settlement, is expected to open strong after the smooth passage of the finance bill in the lower house of the parliament on Friday. Many foreign funds, who remained on the sidelines following the political crisis on March 31, are expected to step in after the passage of the finance bill. The positive monsoon forecast is also expected to boost the sentiment.

The scrips that were in focus this week were the banking scrips, which is hoped to do well following an increase in the credit off take. Some operators who had built position in bank scrips squared up on the last day leading to softening of price in these scrips which had surged high on Wednesday and at NSE on Thursday.

But the biggest blow came in the form of shattering 98 per cent drop in the profit of Century Textiles and Industries. Shares of Century Textiles and Industries plunged 10 percent on Friday, taking the fall to 24 percent since Monday, after the firm announced the results. It closed at Rs 1830 on Friday.

Apart from the scrip taking a battering after the result announcement, it also sent shivers down the spine of market as majority of corporate results are yet to be out. Market was a bit complacent in the previous week after some positive results brought hope that the corporate performance will not be that bad after all the fear of a economy slow down last year.

The software stocks like Infosys Technology, Satyam Computers, Mastek and others continued their upward march on FII and speculative support.

Another set of stocks which also was in the upward bracket were the PSU stocks.

Certain low priced PSU stocks like HMT, ITI and Hindustan Zinc continued to witness buying interest, which reflected on the upward price movement of these stocks.

Hindustan Zinc closed at Rs 21.70 up by 16 per cent with a net volume of 13.98 lakh shares traded on the BSE.

The sideline stocks like Bata India, Bousch & Lomb, Exide India, Container Corporation continued to attract a lot of institutional buying. On the BSE, Exide India touched a high of Rs 161.50 where there were no sellers.

Among the auto stocks, Hero Honda continued to touch a new high of Rs 438.50. The newly listed Bank of India scrip saw lot of speculative buying. It was quoting at a premium of 62 per cent over the issue price.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.