Bears retain edge

STOCK MONITOR

The markets again encountered wild swings in fortunes as liquidation of positions in the derivatives segment prior to expiry of January 2004 contracts and profit-booking gave bears the edge.

The 30-share BSE Sensex lost 120.97 points last week to close at 5,695.67. The S&P CNX Nifty shed 37.80 points to close at 1,809.75.

The market remained closed on Monday on account of Republic Day. Markets opened on a positive note on Tuesday as across-the-board buying helped them erase the losses of the previous week.

However, after a two-session winning streak, profit-booking led to a decline on Wednesday. Bulls lost further ground on Thursday as selling pressure mounted with the expiry of the January series futures contracts in the F&O segment. The Sensex closed 107 points down on Friday amid volatility.

INFOSYS
Last week's close (Rs) 5203.98
Prev. week's close (Rs) 5472.85
Week's high (Rs) 5622.50
Week's low (Rs) 5085.00
Last week's ave. daily turnover (Rs cr) 324.57
Prev. week's ave. daily turnover (Rs cr) 406.69
Futures close Feb-2004 (Rs) 5238.30
Futures close Mar-2004 (Rs) 5300.00
Futures close Apr-2004 (Rs) 0.00
Number of up/down moves 1/3

Infosys was a loser last week and slid by almost 5 per cent over its previous weekly close. The counter witnessed a lot of volatility in the course of the week and vacillated between gains and losses for most part of the week.

There were recent reports that Progeon, the business process outsourcing (BPO) subsidiary of Infosys, has entered into a strategic alliance with Hazell Carr of the UK, a leading business process management company.

Hazell Carr provides services to life assurance companies and corporates with pension schemes. The company is set to open a software development centre in Kerala this month.

Infosys had signed an agreement in August 2003 to set up the facility at the Technopark campus in Thiruvanathapuram. Infosys will commence operations with approximately 50 software professionals and ramp up operations over the next two-three years.

ZEE TELEFILMS
Last week's close (Rs) 151.50
Prev. week's close (Rs) 155.60
Week's high (Rs) 168.50
Week's low (Rs) 150.65
Last week's ave. daily turnover (Rs cr) 108.70
Prev. week's ave. daily turnover (Rs cr) 103.32
Futures close NT
Number of up/down moves 2/2

Zee Telefilms slipped at the bourses last week after posting results that were in line with expectations. The stock slipped 2.6 per cent over its previous weekly close.

Dealers say though advertising revenues had gone up, the company had been a laggard in the ratings game with only its Hindi movies figuring in the top programmes.

Its rival Sony had, meanwhile, hit paydirt in the form of 'Jassi Jaisi Koi Nahin'. Analysts say the uncertainty surrounding CAS and the relatively low viewership may work against the company.

Zee Telefilms posted a net profit of Rs 36.75 crore for the quarter ended December 31, 2003, up 65.61 per cent compared to Rs 22.19 crore in the same quarter last year. Total income increased from Rs 141.13 crore in the Q3 02 to Rs 179.2 crore in the quarter ended December 31, 2003.

DIGITAL GLOBALSOFT
Last week's close (Rs) 836.15
Prev. week's close (Rs) 794.50
Week's high (Rs) 841.50
Week's low (Rs) 785.50
Last week's ave. daily turnover (Rs cr) 25.14
Prev. week's ave. daily turnover (Rs cr) 18.28
Futures close Feb-2004 (Rs) 839.15
Futures close Mar-2004 (Rs) 870.00
Futures close Apr-2004 (Rs) 0.00
Number of up/down moves 2/2

Digital GlobalSoft got a boost after the book-built price for the delisting of Digital GlobalSoft shares from the domestic stock exchanges was fixed at Rs 850 per share. The stock moved up 5.24 per cent over its previous weekly close.

In November Hewlett-Packard (HP) had announced that it would buy out the 49.4 per cent public stake in Digital GlobalSoft at a price of Rs 750 per share.

In June Digital GlobalSoft signed a definitive agreement with HP to combine its operations with HP Services India Software Organization (HP ISO). Under the agreement, HP was to increase its equity stake in Digital GlobalSoft to 73.2 per cent from 50.6 per cent.

Meanwhile, the company reported a net profit of Rs 35.55 crore for the quarter ended December 31, 2003, up 31.60 per cent from the same quarter last year. Total income for the quarter stood at Rs 165 crore, up 46.03 compared with Rs 113 crore in the same quarter a year earlier.

TATA MOTORS
Last week's close (Rs) 520.13
Prev. week's close (Rs) 466.88
Week's high (Rs) 540.25
Week's low (Rs) 470.98
Last week's ave. daily turnover (Rs cr) 882.56
Prev. week's ave. daily turnover (Rs cr) 454.11
Futures close Feb-2004 (Rs) 513.60
Futures close Mar-2004 (Rs) 516.50
Futures close Apr-2004 (Rs) 0.00
Number of up/down moves 3/1

Tata Motors was among the biggest gainers last week, having gone up by 11.4 per cent over its previous weekly close. The counter was heavily battered the week before even though the company registered a 180 per cent growth in net profit for the quarter ended December 31, 2003.

The stock witnessed fresh buying on Tuesday and dealers say funds were active on the counter at lower levels. They say the higher growth in commercial vehicle sales during the current fiscal is the main reason for the renewed buying in auto stocks, including Tata Motors.

The company recently obtained approval by special resolution for raising the limit for holdings by foreign institutional investors (FIIs) from 24 per cent to 35 per cent of the paid up capital of the Company.

ONGC
Last week's close (Rs) 739.63
Prev. week's close (Rs) 782.38
Week's high (Rs) 818.00
Week's low (Rs) 736.08
Last week's ave. daily turnover (Rs cr) 165.25
Prev. week's ave. daily turnover (Rs cr) 202.35
Futures close Feb-2004 (Rs) 731.20
Futures close Mar-2004 (Rs) 737.00
Futures close Apr-2004 (Rs) 0.00
Number of up/down moves 1/3

ONGC witnessed a highly volatile week with the stock closing 5.5 per cent below last week's close. The stock price saw intra-week movement of 82 points between its high and low.

Volumes declined at the bourses by 18.3 per cent. The stock hit a high last week on news that the company had discovered huge gas deposits in the Krishna-Godavari basin.

This was, however, offset by heavy profit-booking by market players. Market sources say ONGC's Sagar Vijay discovered large gas deposits while drilling its maiden well.

The news should provide positive sentiments in the coming trading days since the counter is already poised for gains from the government's divestment programme (divestment of 10 per cent stake).

MARUTI UDYOG
Last week's close (Rs) 432.18
Prev. week's close (Rs) 417.18
Week's high (Rs) 444.55
Week's low (Rs) 377.05
Last week's ave. daily turnover (Rs cr) 562.88
Prev. week's ave. daily turnover (Rs cr) 461.64
Futures close Feb-2004 (Rs) 433.60
Futures close Mar-2004 (Rs) 435.00
Futures close Apr-2004 (Rs) 0.00
Number of up/down moves 2/2

Maruti, one of the few large-cap gainers at the bourses last week, witnessed high volatility as the stock saw intra-week movement of around 68 points between its high and low.

The scrip closed higher by 3.6 per cent at the bourses. Volumes, too, jumped by 22 per cent amidst buying interest across the board.

The stock has seen interest lately after the NSE declared that it would include Maruti Udyog in the Nifty with effect from March 1, 2004.

After the announcement in mid-January, the stock has gained more than 10 per cent from levels of Rs 400. Market players are bullish on the stock due to its impressive third-quarter results as well as a robust growth outlook for the coming quarters.

RELIANCE INDUSTRIES
Last week's close (Rs) 560.08
Prev. week's close (Rs) 558.53
Week's high (Rs) 591.63
Week's low (Rs) 557.75
Last week's ave. daily turnover (Rs cr) 794.86
Prev. week's ave. daily turnover (Rs cr) 661.01
Futures close Feb-2004 (Rs) 564.45
Futures close Mar-2004 (Rs) 572.80
Futures close Apr-2004 (Rs) 0.00
Number of up/down moves 1/3

RIL remained a steady scrip even as others took a beating. The scrip marginally increased by 0.3 per cent while volumes clocked an increase of 20 per cent.

This said, the stock has witnessed a turbulent week with the scrip moving 35 points (difference in high and low) in intra-week trades. The company plans to set up a 3500-mw gas-based power plant in Uttar Pradesh.

It is also planning to transform the newly acquired Nocil plant into a super specialty company. The company has the best refining margins in Asia - $6.5 per barrel compared to Asian average of $3.5 per barrel.

TATA STEEL
Last week's close (Rs) 405.33
Prev. week's close (Rs) 426.55
Week's high (Rs) 453.40
Week's low (Rs) 401.88
Last week's ave. daily turnover (Rs cr) 682.89
Prev. week's ave. daily turnover (Rs cr) 732.31
Futures close Feb-2004 (Rs) 410.05
Futures close Mar-2004 (Rs) 411.55
Futures close Apr-2004 (Rs) 0.00
Number of up/down moves 1/3

Tata Steel recorded a decline of 5 per cent amidst a highly volatile week. Intra-week movements (between high and low) saw the stock oscillate 21 points. Volumes on the counter declined by a modest 6.8 per cent.

The counter witnessed profit-booking after a rise in steel scrips on the back of news that steel prices were headed for an increase. Steel manufacturers are all set to raise their prices of hot-rolled by Rs 1,500 per tonne from February.

After this raise, prices of HR will touch Rs 22,750 per tonne, an all-time high in five years. Market players say input costs of steel had risen and that the hike in prices will only absorbs half the impact. They say reduced availability of raw materials was an issue when demand was rapidly rising.

Stock of the week

SHIPPING CORPORATION
Last week's close (Rs) 151.55
Prev. week's close (Rs) 171.40
Week's high (Rs) 181.00
Week's low (Rs) 150.60
Last week's ave. daily turnover (Rs cr) 56.35
Prev. week's ave. daily turnover (Rs cr) 32.67
Futures close Feb-2004 (Rs) 153.00
Futures close Mar-2004 (Rs) 159.10
Futures close Apr-2004 (Rs) 0.00
Number of up/down moves 1/3

SCI ended the week more than 11 per cent down at Rs 151.55, after touching an intra-week high of Rs 180. Riding on the back of a 22 per cent growth in net sales, the company registered a net profit of Rs 133.2 crore in Q3 FY04.

SCI's operating profit jumped 79 per cent to Rs 208.6 crore. The upsurge in shipping freight rates due to a revival of both the Indian and global economy has been cited as the main reason behind the impressive performance by the company.

Analysts feel that greater clarity on the divestment front would help take the SCI scrip a lot higher. The company said it is planning to expand its fleet in earnest after a hiatus of almost two years.

This should benefit the company as freight rates in the bulk-carrier segment are expected to rule firm, with steel and iron exports to China expected to remain strong.

RECAP: BHARTI TELE-VENTURES
The stock continued its upward journey, clocking a 6.39 per cent gain to close at Rs 134.85.

Stock to watch

PUNJAB NATIONAL BANK
Last week's close (Rs) 258.10
Prev. week's close (Rs) 270.28
Week's high (Rs) 300.33
Week's low (Rs) 256.33
Last week's ave. daily turnover (Rs cr) 85.67
Prev. week's ave. daily turnover (Rs cr) 59.89
Futures close Feb-2004 (Rs) 260.60
Futures close Mar-2004 (Rs) 0.00
Futures close Apr-2004 (Rs) 0.00
Number of up/down moves 2/2

Punjab National Bank's scrip is likely to be in focus after the state-controlled bank informed BSE that its board has given approval for the taking over of beleaguered financial institution IFCI.

The take-over will be subject to due diligence and other conditions as may be stipulated by the bank's board besides obtaining the requisite approvals.

The finance ministry had earlier planned to restructure the New Delhi-based financial institution before merging it with a bank or another financial company.

The government proposed to come up with a restructuring package, which involved conversion of a loan worth Rs 1,573 crore provided to the institution into a grant.

RECAP: TATA MOTORS
The scrip reversed its losses of the previous week to close at Rs 519.85 (up 11.21 per cent).

BAYER INDIA
Last week's close (Rs) 227.30
Prev. week's close (Rs) 244.85
Week's high (Rs) 250.00
Week's low (Rs) 220.40
Last week's ave. daily turnover (Rs cr) 0.34
Prev. week's ave. daily turnover (Rs cr) 0.12
Futures close NT
Number of up/down moves 2/2

Bayer India slipped on profit-booking after the scrip touched a high of Rs 250 last week. It closed the week 7.10 per cent down at Rs 227.30.

The company recently announced the transfer of sale of products based on active ingredient Fipronil and assets to BASF India.

The execution of related agreements is in line with the global arrangements between Bayer CorpScience AG and BASF AG.

Bayer India has been planning to dispose of its healthcare, polymer and chemical businesses. The entire economic value and benefit from this activity in India will continue to remain with Bayer India.

RECAP: I-GATE GLOBAL SOLUTIONS
The scrip continued to be under pressure, losing 6.39 per cent, to close at Rs 245.40.

Small-cap mover

MAX INDIA
Last week's close (Rs) 151.65
Prev. week's close (Rs) 153.00
Week's high (Rs) 171.88
Week's low (Rs) 147.95
Last week's ave. daily turnover (Rs cr) 5.94
Prev. week's ave. daily turnover (Rs cr) 5.02
Futures close NT
Number of up/down moves 1/3

Max India closed 0.88 per cent down at Rs 151.65 last week after touching an intra-week high of Rs 171.88. The upturn at the counter had come on the back of reports that Max India had sold HealthScribe India, a medical transcription company, for a consideration of $10.30 million to HealthScribe Inc, increasing the latter's stake to 85 per cent.

In 2000, Healthscribe had exited Healthscribe India after clients in the US raised concerns regarding quality, which made India unviable for medical transcription.

Since then HealthScribe held a minority stake in the unit. HealthScribe bought a 65 per cent stake from Max India by paying $10.3 million. The balance is held by a Swiss equity fund.

RECAP: JYOTI STRUCTURES
The counter saw profit-booking after the previous week's gains to close at Rs 98.75, down 2.47 per cent.

Week's closing is the average closing price on NSE and BSE on Friday. Weekly high is the average higher of NSE and BSE prices during the week. Week's low is the average lower of NSE and BSE prices. Turnover is based on volumes in both BSE and NSE. NT: Not traded. NA: Not applicable.
(Data compiled by BS Research Bureau)