MUMBAI/NEW DELHI, March 20: The stock markets on Friday extended a token welcome to the new finance minister with Sensex showing a rise of only 20 points. But the markets have already started generating its wish list and the ground is being prepared for a longer shot in the days to come.It was the day of the MNC stock, clearly setting aside the fears generated by the "swadeshi" talk. MNCs, especially pharma scrips, on the Bombay Stock Exchange set new records.
Optimism and expectations go together. "I am a little more optimistic, more positive," was how Harshad Mehta welcomed the new finance minister. Neel Dalal, a BSE member has already started looking forward to the budget, "which is expected to be market friendly."
N D Agarwal and Ashok Agarwal of the Delhi Stock Exchange are a little more specific. They see interest rates coming down what with Yashwant Sinha keen on ensuring a level playing field for domestic industry. "If the interest of the domestic industry is to be considered, I expectinterest rates to come down and a possible hike in customs duty, though selectively," says N D Agarwal. He is cautiously bullish: "market will move up and it can cross the 4,000-level."
Ashok Agarwal, former president of DSE, sees the Sensex scaling the 4,600 mark once again this year.
Continuing with their unbridled gains, MNC scrips scaled new highs while some inched closer to their all-time highs. While marktmen cited various reasons for the spurt on pharma counters, fresh investments poured in and volumes touched a record high.
On Friday, German Remedies witnessed its highest volume of 4.28 lakh shares while the price shot up from Rs 328 to Rs 342. The scrip started its northward journey towards the middle of this month with the price at Rs 295. While Smithkline Beecham Pharmaceutical touched an all-time high of Rs 712, Pfizer inched closer to its all-time of high of Rs 570 with the scrip closing at Rs 544. Parke Davis saw its second highest volume so far when approximately 51,000 shares were tradedon the Mumbai Stock Exchange.
The talk of Swadeshi does not worry many very much. The priorities have to be clear. On the other hand "we have been talking too much Videshi," quips Harshad Mehta, pointing out that the present government is clear about the reforms. "We need bold decisions now, the mood indicates they will come by," he adds.
Amidst brokers exercising caution, the market shifted focus away from Sensex heavyweights to selective buying in other counters which could possibly benefit from the new governments policies.
Reflecting the buoyant and firm undertone of the market on the last day of the financial year on the BSE, the BSE-30 index held strong above the crucial barrier of 3,800 to finally close at the day's high of 3,840.72 registering a gain of 19.53 points.
Across the board buying at MNC, consumer goods, pharma and software stocks, continued to be the prominent feature of the day. "The rally which kicked off at the MNC counters trickled down to the swadeshi counters,too," said a dealer at an institutional brokerage outfit.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
