Volatility marks the week

STOCK MONITOR

Trading was marked by volatility last week, though bulls managed to come out on tops.

The 30-share BSE Sensex closed the week at 6119.59, a gain of 93 points, while the broader Nifty added 25.85 points to settle at 1971.90.

A late surge in select heavyweight counters helped the indices close with gains on Monday. However, the markets were to lose momentum on Tuesday as profit-booking led to big losses across counters.

Mid-week activity was marked by volatility, though short-lived, as the Sensex scaled a new high on Thursday on the back of duty cuts announced by the government across sectors.

The markets ended the week with modest gains on Friday in a session again marked by volatile trading. The trend is set to continue for most of this week, say analysts.

LARSEN & TOUBRO
Last week's close (Rs) 581.28
Prev. week's close (Rs) 536.80
Week's high (Rs) 601.00
Week's low (Rs) 507.50
Last week's ave. daily turnover (Rs cr) 145.83
Prev. week's ave. daily turnover (Rs cr) 76.43
Futures close Jan-2004 (Rs) 581.80
Futures close Feb-2004 (Rs) 586.00
Futures close Mar-2004 (Rs) 0.00
Number of up/down moves 3/2

Larsen & Toubro hit an 52-week high last week. The counter is said to have attracted buying interest after the company announced that it has secured an order valued at $30 million for upgrading facilities at the Bu Hasa project of GASCO in Abu Dhabi.

Reports of the L&T stock split for demerger also affected sentiment. Domestic funds as well as FIIs have been accumulating the scrip over the last few months.

The company is also said to be chalking out plans to restructure its capital to mirror the true value of its remaining engineering and construction business.

STATE BANK OF INDIA
Last week's close (Rs) 640.43
Prev. week's close (Rs) 566.68
Week's high (Rs) 650.85
Week's low (Rs) 567.88
Last week's ave. daily turnover (Rs cr) 611.45
Prev. week's ave. daily turnover (Rs cr) 327.23
Futures close Jan-2004 (Rs) 644.00
Futures close Feb-2004 (Rs) 653.00
Futures close Mar-2004 (Rs) 0.00
Number of up/down moves 3/2

SBI touched an all-time intra-day high last week. Foreign institutional investors and domestic funds were said to be accumulating the SBI stock in anticipation of strong performance and hopes that the cap on foreign institutional investment in PSU banks would be raised, market sources said.

The SBI scrip price has surged in the past few months on increased buying interest.

The bank expects its deposits and advances to grow 18 per cent and 16 per cent respectively for 2003-04. It also hopes to bring down its net non-performing assets to less than 3 per cent of its total assets by 2005.

ORIENTAL BANK OF COMMERCE
Last week's close (Rs) 280.75
Prev. week's close (Rs) 263.75
Week's high (Rs) 284.35
Week's low (Rs) 245.50
Last week's ave. daily turnover (Rs cr) 50.45
Prev. week's ave. daily turnover (Rs cr) 35.96
Futures close Jan-2004 (Rs) 279.75
Futures close Feb-2004 (Rs) 285.00
Futures close Mar-2004 (Rs) 0.00
Number of up/down moves 3/2

Oriental Bank of Commerce witnessed hectic activity last week. The scrip gained more than 6.40 per cent to close at Rs 280.75.

The stock had slipped mid-week after the bank declared an interim dividend of Rs 2 per share or 20 per cent for FY04.

For the second quarter ended September 30, 2003, the bank reported a 43.80 per cent rise in net profit at Rs 162.72 crore, compared with a net profit of Rs 113.15 crore in the corresponding period last year. OBC has a strong presence in the northern and western regions of the country.

RELIANCE INDUSTRIES
Last week's close (Rs) 577.28
Prev. week's close (Rs) 585.45
Week's high (Rs) 603.83
Week's low (Rs) 563.63
Last week's ave. daily turnover (Rs cr) 579.74
Prev. week's ave. daily turnover (Rs cr) 682.52
Futures close Jan-2004 (Rs) 582.95
Futures close Feb-2004 (Rs) 586.65
Futures close Mar-2004 (Rs) 0.00
Number of up/down moves 2/3

RIL witnessed marginal buying activities at the bourses last week amidst highly volatile trading which concluded with profit-booking. The buying interest was spurred on the back of news that Reliance was buying out the petrochemicals and plastics business of Nocil.

However, the stock price lost marginally by 1.4 per cent at the bourses while volumes clocked a decrease of 15 per cent over the previous week.

According to sources, the company is about to acquire the petrochem and plastics divisions of Nocil through an associate company. The move is expected to get Reliance a near monopoly status in the petrochemicals business.

Since the company is already a market leader in the domestic circle, the acquisition will enhance its capabilities as it can harness the manufacturing capacity of Nocil.

BHEL
Last week's close (Rs) 576.75
Prev. week's close (Rs) 535.85
Week's high (Rs) 588.50
Week's low (Rs) 490.45
Last week's ave. daily turnover (Rs cr) 70.08
Prev. week's ave. daily turnover (Rs cr) 41.82
Futures close Jan-2004 (Rs) 578.60
Futures close Feb-2004 (Rs) 580.00
Futures close Mar-2004 (Rs) 0.00
Number of up/down moves 3/2

Bhel came into limelight last week amidst hectic buying at the bourses. The stock price gained 7.6 per cent and volumes registered an increase of 68 per cent over the previous week. The government's decisions in the power sector seem to be helping the stock gain ground amidst sustained buying.

According to market players, the stock has picked up on the back of optimism for the sector as a whole. The Electricity Act has done wonders yet again for the scrip.

The Act is expected to act as a catalyst in improving the financial health of state electricity boards which will lighten up the power sector. The sector is then slated to witness improved and consistent growth.

TATA MOTORS
Last week's close (Rs) 466.33
Prev. week's close (Rs) 456.63
Week's high (Rs) 476.45
Week's low (Rs) 438.18
Last week's ave. daily turnover (Rs cr) 170.21
Prev. week's ave. daily turnover (Rs cr) 162.99
Futures close Jan-2004 (Rs) 470.25
Futures close Feb-2004 (Rs) 473.55
Futures close Mar-2004 (Rs) 451.65
Number of up/down moves 2/3

Tata Motors has driven itself high up at the bourses with consistent buying interest from all market players. The scrip hit a 52-week intraday high last week at Rs 467.10 and over the week recorded a 2.12 per cent increase in price.

Volumes, too, clocked an increase of 5 per cent at the bourses in volatile trading sessions. The counter is said to have seen benefits accruing from the fact that the company is slated to increase prices of its B-segment car, Indica.

According to market sources, the move will help Tata Motors cash in on the increasing demands for passenger cars due to lower interest rates. Tata Motors is said to have hiked prices for all the versions of Indica.

TATA STEEL
Last week's close (Rs) 441.68
Prev. week's close (Rs) 451.05
Week's high (Rs) 457.23
Week's low (Rs) 425.68
Last week's ave. daily turnover (Rs cr) 487.99
Prev. week's ave. daily turnover (Rs cr) 396.71
Futures close Jan-2004 (Rs) 447.75
Futures close Feb-2004 (Rs) 450.70
Futures close Mar-2004 (Rs) 0.00
Number of up/down moves 2/3

Tata Steel has witnessed an impressive run-up in its stock price at the bourses but profit-bookers seem to have come in now.

The stock price recorded a decrease of 2 per cent as volatility ruled the stock last week. Volumes, however, surged to register an increase of 23 per cent over the previous week. The counter has already seen commendable gains on the back of steel prices firming up internationally.

This is led by a strong demand for steel in the global markets. Domestic demand has also seen an increase with improved orders from construction and automobile sectors.

The company's domestic sales for April to December 2003 grew by 7 per cent to 2.45 million tonnes compared with the same period last year.

Stock of the week

MARUTI UDYOG
Last week's close (Rs) 439.83
Prev. week's close (Rs) 380.58
Week's high (Rs) 448.10
Week's low (Rs) 364.35
Last week's ave. daily turnover (Rs cr) 214.59
Prev. week's ave. daily turnover (Rs cr) 135.64
Futures close Jan-2004 (Rs) 440.75
Futures close Feb-2004 (Rs) 447.70
Futures close Mar-2004 (Rs) 0.00
Number of up/down moves 3/2

Maruti has no looking back. The car-maker has consistently gained at the bourses with increasing buying interest from all players. Last week the stock price registered an increase of 15 per cent and also hit an all-time high of Rs 403.15 intra-day. Volumes clocked an increase of 58 per cent over the previous week.

The recent flare up in price is on the back of reports that the government is planning to sell its remaining stake in Maruti to Suzuki Motor Corp instead of going for a public offer.

There has also been positive expectation on the company's third-quarter results. Players are buoyant on the counter since the company has thrown up a strong sales performance.

RECAP: EICHER MOTORS
The scrip surged 6.88 per cent last week to close at Rs 268.65.

Stock to watch

ONGC
Last week's close (Rs) 913.30
Prev. week's close (Rs) 919.18
Week's high (Rs) 997.50
Week's low (Rs) 865.33
Last week's ave. daily turnover (Rs cr) 271.15
Prev. week's ave. daily turnover (Rs cr) 157.66
Futures close Jan-2004 (Rs) 919.70
Futures close Feb-2004 (Rs) 929.00
Futures close Mar-2004 (Rs) 0.00
Number of up/down moves 3/2

ONGC has seen hectic activity last week after reports that public offers for 10 per cent equity each in ONGC and GAIL are likely to hit the market on March 10.

Marketmen say that buying was witnessed on the counter on hopes that divestment would take place at a price higher than the current market price.

According to a tentative schedule drawn by the merchant bankers for the public offer of 142 million equity shares of ONGC and 84 million equity shares of GAIL, bids under a book-building process will be invited around March 10. The allotment of shares and the setting of the issue price are slated for March 26.

RECAP: INFOSYS
Even better-than-anticipated quarterly results failed to ignite the scrip last week which closed 2.35 per cent up at Rs 5805.80.

Mid-cap mover

CRANES SOFTWARE
Last week's close (Rs) 390.60
Prev. week's close (Rs) 353.85
Week's high (Rs) 390.60
Week's low (Rs) 360.90
Last week's ave. daily turnover (Rs cr) 0.42
Prev. week's ave. daily turnover (Rs cr) 0.28
Futures close NT
Number of up/down moves 5/0

Cranes Software International gained 10.38 per cent last week after the Bangalore-based global scientific and engineering software solutions provider announced plans to float a global depository receipts (GDR) issue.

Following the proposed GDR, Cranes' paid-up equity capital will increase from 8,422,440 shares to 10,222,440 shares of Rs 10 each. The company will issue 1.8 million fully paid equity shares in the form of GDRs.

The proposed issue will contribute to the funding requirements of CSIL's planned business expansion that includes exploiting emerging growth opportunities through acquisitions, joint ventures and strategic alliances in India and abroad.

RECAP: ALSTOM INDIA
The scrip shed 6.16 per cent last week to close at Rs 58.60.

Small-cap mover

HARIA EXPORTS
Last week's close (Rs) 35.80
Prev. week's close (Rs) 45.55
Week's high (Rs) 48.00
Week's low (Rs) 35.45
Last week's ave. daily turnover (Rs cr) 0.54
Prev. week's ave. daily turnover (Rs cr) 0.96
Futures close NT
Number of up/down moves 1/4

Haria Exports crashed 21.40 per cent last week to close at Rs 35.80. The company informed the BSE that the board of directors has decided to allot two equity shares of the company to shareholders for every five shares held. This would be subject to the approval of shareholders of the company.

Recently, the company had bagged a Rs 3.54-crore order from E S Sutton, one of the main suppliers to the world's largest retailer chain, Wal-Mart Stores. The company plans to open offices in USA and European countries.

RECAP: KREBS BIOCHEM
The scrip crashed 20.37 per cent last week to end at Rs 217.55.

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)