The bull run continued at the bourses last week, with the indices advancing for four out the five sessions.
The 30-share BSE Sensex gained 50.90 points during the period to close at 3354.14, a four-and-a-half month high, while the broader Nifty clocked a 9.80 points gain to end the week at 1056.20.
Positive sentiments on the onset of monsoons lifted the Sensex to a four-month high on Monday.
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Profit-booking snapped a four-day winning streak on Tuesday, but the buyers were back in control for the rest of the week.
Technology bluechip Digital GlobalSoft was in focus during the week as the scrip crashed more than 25 per cent on Monday after the company announced a merger with parent Hewlett Packard's Indian IT services arm.
Banking sector stocks were under pressure after the government asked Sebi to probe the abnormal movement in banking scrips. PSU stocks surged on Thursday as Maruti Udyog Ltd's IPO opened to a warm response.
DIGITAL GLOBALSOFT
Last Week Close Rs 385.18
Previous Week Close Rs 500.30
Weekly High Rs 385.18
Weekly low Rs 360.43
Last week Avg Turnover Rs 213.76 crore
Previous week Avg Turnover Rs 246.73 crore
Future close 387.40,385.15,NT
Number of up/down moves 3/2
Digital GlobalSoft was among the big declines of last week, after the company announced that it had signed an agreement with HP to combine itself with the latter's Indian IT services arm, HP Services India Software Organisation (HPS-ISO).
The scrip crashed 23 per cent during the week, though it recovered towards the latter part of the week to close at Rs 385.18. The average weekly turnover was down by 13.36 per cent to Rs 213.76 lakh.
The scrip nosedived 25.5 per cent on Monday (June 6), the first trading day after the announcement of the merger, to close at an 18-month low of Rs 372.35.
Analysts were less than impressed, because of the lack of clarity in the deal and the apparent dilution in Digital's equity post-deal.
According to analysts, the valuations of HPS-ISO are too high. The stock is expected to stabilise around the Rs 360-370 levels.
BSES
Last Week Close Rs 262.20
Previous Week Close Rs 219.90
Weekly High Rs 270.48
Weekly low Rs 225.38
Last week Avg Turnover Rs 24.78 crore
Previous week Avg Turnover Rs 1.94 crore
Future close 261.40,260.70,NT
Number of up/down moves 4/1
BSES has been an active mover in the stock market last week. The stock price has jumped 19.23 per cent over the previous week's close to settle at 262.20. This has come on the back of a huge rise in average weekly turnover at Rs 24.78 crore from the previous week's Rs 1.94 crore.
The market expects that the company could source source gas at cheap rates from Reliance. This would reduce its dependence on Tata Power as a source of power.
As per market buzz, Salomon Smith Barney had acquired a major chunk of the stock on Tuesday. UTI and the company's management were said to be accumulating the stock.
At the current prices, some analysts say that the stock is overvalued. Technical analysts expect the stock to correct to Rs 250 in the near term. If the uptrend continues, the stock is expected to run into a resistance at the Rs 310 levels.
INDIAN HOTELS
Last Week Close Rs 221.55
Previous Week Close Rs 197.48
Weekly High Rs 221.55
Weekly low Rs 208.78
Last week Avg Turnover Rs 2.84 crore
Previous week Avg Turnover Rs 1.53 crore
Future close NT
Number of up/down moves 4/1
Indian Hotels has been moving up on the hopes of good results. The scrip gained 12.18 per cent last week to close at Rs 221.55. Weekly turnover also jumped up by 85.37 per cent to Rs 2.84 crore.
The stock has recently fallen on fears that the hotel industry would be adversely affected by the outbreak of SARS. With SARS leaving no visible effect on India, the shares have bounded back.
Analysts expect that the average room revenue (ARR) would have increased in the March quarter, with a consequent rise in the topline. The beverages segment is also expected to bring in good sales for the company.
Technically, the stock has a resistance at Rs 230. If the resistance is broken, the next resistance is at Rs 280, say analysts.
SHIPPING CORPORATION OF INDIA
Last Week Close Rs 70.68
Previous Week Close Rs 78.30
Weekly High Rs 76.58
Weekly low Rs 70.68
Last week Avg Turnover Rs 8.50 crore
Previous week Avg Turnover Rs 9.63 crore
Future close 71.40,72.00,NT
Number of up/down moves 0/5
The SCI scrip shaved off 9.73 per cent from its previous weekend close to end last week at Rs 70.68. The average weekly turnover was down 11.69 per cent to Rs 8.50 crore.
According to reports, the inter-ministerial group, consisting of secretaries to the shipping and disinvestment ministries, cleared four expression of interest (EoIs) for the disinvestment of the company.
K' Line (Kawasaki Kisen Kaisha) of Japan is the only foreign bidder which has submitted an EoI for acquiring the government stake in SCI. The other three proposals are from Essar Shipping, Sterlite Industries and Videocon.
Small-cap mover
NEYVELI LIGNITE
Last Week Close Rs 39.80
Previous Week Close Rs 35.35
Weekly High Rs 41.20
Weekly low Rs 34.10
Last week Avg Turnover Rs 24.44 crore
Previous week Avg Turnover Rs 6.97
Future close NA,NA,NA
Number of up/down moves 2/3
Neyveli Lignite spurted 12.6 per cent during the week with the average weekly turnover spurting by a whopping 250 per cent.
The scrip leaped by 7.25 per cent on Wednesday and touched a 52 week high of Rs 41.65 on the BSE. The scrip has gained around 50 per cent since January.
The appreciation of the stock is pegged on the expectation of a part divestment of the governments stake of 94 per cent in the company.
Analysts feel that the stock presents the best bet in the utilities sector. It services the best-rated SEBs in the country and its impending privatisation presents an additional trigger. Motilal Oswal has also come out with a buy recommendation on the stock.
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