Uncertainty about the petroleum price hike prevented punters from taking positions, making the market to move in a narrow range throughout the week. Reflecting the mood, the 30-scrip BSE Sensex closed at 3759.64 on Friday, down 9.70 points from the previous closing.

Some movement to the market was given by the corporate results that continued to trickle in this week. The end of the week saw some activity primarily because of expectations ahead of results announcement by major companies like ITC, Bajaj Auto and Thermax and also because of squaring up activity in some oversold counters.

Otherwise, the real buying continued to be concentrated on the B1 group scrips, whch had cought the fancy of both speculators and FIIs for the past few weeks.ITC was one scrip which gained handsomely on Friday due to bull operators taking large positions on the scrip ahead of its results.

It gained Rs 20.75 points to close at Rs 442.75. The other scrips that saw hectic activity on Friday were Telco, Bajaj Auto and Tisco, all based either on the expected annual results or in reaction to the results out already.

Bajaj Auto saw some correction on Friday due to squaring up operations by bulls who had bought into the scrip after the 5.4 per cent rise in net for the year 1996-97 announced on Wednesday. The scrip after gaining by nearly Rs 100 after the results dipped to close at Rs 864 on Friday, still up by about Rs 40 on Wednesday. Tata Tea was another scrip which cought the fancy of operators following rumours of a merger with HLL, which, however, was denied by the management.

FIIs and local institutions were net buyers this week, though on a low key note as well as dispersed in many B1 group stocks.

The week in fact opened with the Sensex dipping by 34 points on Monday, on account of the impending petro-price hike. UTI was a seller on the first few days of the week trying to mop up money for the dividend outgo expected next month. The downward movement continued on Tuesday with the Sensex moving down by about 33 points on low volumes. The market, on Wednesday, gained 38.57 points with the timely entry of institutions. Institutions, both domestic and foreign, were reported to be active buyers at selective counters like Zuari Agro, Andhra Valley, Bajaj Auto, Tata Tea, Ceat, Gujarat Ambuja and Colgate.

Bajaj Auto's decision to consider a bonus issue, a board meeting for which was convened on May 19, and announcement of encouraging performance with its net rising to Rs 440.57 crores as against last year's Rs 418.12 crore prompted heavy buying support.

Tata Tea attracted a circuit filter on the BSE at Rs 267.75, an intra day high at which there were absolutely no sellers. The sentiments seemed to firm up by the end of the account trade on Friday. On Thursday, the market remained in almost the same range.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.