The Madras Stock Exchange (MSE) continued to run low on fuel even as the impending petroleum price hike cast a shadow on trading. The players were wary of taking any positions and as a result, the bears had their way during most part of the week. It was the unexpectedly good results posted by Bajaj Auto that turned the sentiment around. The week closed on a slightly positive note.

The MSE index ended the week at 3600.46 points as against the previous week's close of 3641.87 in the process losing about 41 points.

The markets declined during the first three trading days. MSE in aggregate lost about 67 points in that period.

Most scrips found their values depreciating. The good results posted by Bajaj acted as a catalyst for the speculators to push up the prices of certain scrips.

ITC gained handsomely on the expectations of improved results. Large quantum of shares are said to have changed hands. Some analysts do not also rule out speculative buying. The scrip which was hovring around Rs 400 level till Wednesday suddenly flared up and closed the week at Rs 437.00.

Dr Reddy's Lab also moved up. One broker attributes it to some buying by interests closed to the management. Telco also gained in the later part of the week due to institutional support.

Easun Reyrolle witnessed buying interest but in the absence of sellers there was not much of an appreciation in the price. Orchid Chemicals went up as the non-delivery period commenced on the NSE but the increase could not be sustained as selling emerged from a domestic institution.

Bank of India declined as speculators offloaded their holdings. Substantial buying by an Mumbai based broker halted K V Bank's fall. Sakthi Sugars came under limelight with good buying emerging. A domestic mutual fund is reportedly taking positions. However things were not as good for the other Coimbatore-based company SIV industries. Closure of its plant resulted in it posting a loss and the scrip pierced its 52 week low. The good news this week was the shift in interest from A-group scrips to B1 stocks. This shift, according to some players was more apparent this week. The petro-product price hike could continues to hang like a damocle's sword and may prevent any substantial improvement in market sentiment. As one broker put it " the single most bullish factor would be the price hike and sooner it comes the better".

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.