Trading on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) remained dull mainly due the spate of holidays in the past week.
What was surprising was that the long outstanding position at the Bombay Stock Exchange increased to nearly Rs 1,000 crore during the week, which clearly meant that operators were taking fresh positions.
Last week, the bourses witnessed a furore over the flagship scheme of the Unit Trust of India (UTI), US-64.
On Monday, the UTI chairman P Subramaniam admitted that the NAV of this scheme had dipped below Rs 10. He also said that the scheme's reserves has turned negative to the tune of Rs 1098 crore.
Though large-scale redemptions was expected as a result of this startling revelation, the market did hold on as the chairman raised both the sale and repurchase prices of the US-64 by 15 paise.
However, a damaging statement issued during mid-week by Subramaniam took its toll and in the kerb deals most of the pivotals were trading markedly down.
When the market closed for short vacation on Wednesday, the sensex was already down by 121 points from its previous close on Friday.
With the US markets also showing signs of nervouness, it is likely that the market will open weak on Monday. The average badla rates closed higher at around 20 per cent.
New Delhi: Pivotals tumbled on the Delhi Stock Exchange (DSE) as investors resorted to heavy selling following reports of erosion of reserves of US-64.
Mirroring the mood, the DSE index plunged by 20.52 points during the three-day week at 695.91 against the previous closing of 716.43.
The index declined each day of the period. Shares, including ACC, Zee TV, Bajaj Auto shed prices heavily. However, some of the software shares, including Satyam Computers, BFL Software and Software Solution, arrested the decline.
Even reports of Reliance Telecom launching a Rs 300-crore tax-free infrastructure bond issue next week failed to stem the fall.
Similarly US President Bill Clinton, receiving powers from the House of Representatives and the Senate to lift sancitons against India and Pakistan also could not boost the sentiment.
Coming holidays also forced investors to square up their positions. However, foreign institutional investors reduced their selling somewhat on the last day of the week, with the result that the index went down by only 1.66 points.
Failure of merger plans between Zee Television and Star TV also accentuated the decline with the former's share declining by Rs 44.95 to Rs 644.
Cement major ACC fell by Rs 62.90 to Rs 1096.05, while Bajaj Auto slid by Rs 26 to settle at Rs 660. Bhel rounded off the week at Rs 282.95, down by Rs 26.
Pentafour Software, ITC, Rolta India, Silverline, Larsen and Toubro, Castrol India, Glaxo, Hero Honda, MTNL and Nestle India were the other prominent losers.
However, Satyam Computer firmed up by Rs 34.05 at Rs 584.05, while BFL Software moved up by Rs 30 to settle at Rs 611.
Software Solution closed at Rs 527.90, up by Rs 27.90 and HCL Infosystems gained Rs 10.65 at Rs 286. Dr Reddy's Laboratory was the only prominent gainer, rising by Rs 13.20 at Rs 286.
Chennai: Share prices retreated on the Madras Stock Exchange (MSE) during the two-day trading session, for the week-ended September 29, on emergence of increased selling and profit-taking and finished with small to moderate losses.
The week's stars were the information technology scrips which witnessed small to modest gains. However, ITC, Larsen, Reliance, State Bank of India, Tisco and a few software counters failed to hold on to their previous levels. The MSE share price index dropped by 18.52 points to close the week at 3468.14 against the previous week's 3486.66 points.
ITC declined by Rs 14.90 to Rs 697, Larsen by Rs 6.70 to Rs 188.50, TVS Electronics by Rs 3.35 to Rs 26.65 and Tisco by Rs 2.10 to Rs 96. State Bank of India reacted to Rs 204.10 from Rs 212.20. Amrutanjan, Dhanalakshmi Bank, HDFC Bank, ICICI and Wellwin all drifted lower.
The market remained closed from September 30 to October 2 on account of Ayudha Pooja, Vijayadasami and Gandhi Jayanthi. The market will reopen on Monday, October 5.
