Markets go bust

STOCK MONITOR

SBI
Last week's close (Rs)	515.52
Prev. week's close (Rs)	644.45
Week's high (Rs)	642.05
Week's low (Rs)	499.55
Last week's ave. daily turnover (Rs cr)	561.74
Prev. week's ave. daily turnover (Rs cr)	320.97
Futures close May-2004 (Rs)	515.00
Futures close June-2004 (Rs)	516.90
Futures close July-2004 (Rs)	0.00
Number of up/down move	1/4

 SBI was a huge loser last week and ended over 20 per cent lower than its previous weekly close. Selling pressure came to a head on Friday when the shares took a huge drubbing and lost almost 15 per cent.

 The pressure was intensified by worries over the fate of reforms in the banking sector post-elections which had a spill-over effect on most of the banking scrips.  Crucial decisions, including those involving removal of the 10 per cent cap on investor voting rights in private sector banks, are still pending. The restriction on voting rights seems to block consolidation in the sector.  In addition, the legislation to allow the government to bring down its stake in state-run banks to 33 per cent has been awaiting parliamentary approval for two years. Current government holdings in state banks range from 51 per cent to total ownership.  

BPCL
Last week's close (Rs)	356.52
Prev. week's close (Rs)	469.65
Week's high (Rs)	483.35
Week's low (Rs)	331.50
Last week's ave. daily turnover (Rs cr)	102.11
Prev. week's ave. daily turnover (Rs cr)	46.99
Futures close May-2004 (Rs)	353.45
Futures close June-2004 (Rs)	352.35
Futures close July-2004 (Rs)	340.10
Number of up/down move	0/5

 BPCL was another huge PSU casualty and plummeted over 24 per cent over its previous weekly close. The incoming government's opposition to selling stake in profit-making PSUs was instrumental in the stock losing over 13 per cent in Friday's blood bath.  Disinvestment is pending in about 16 state-run firms as per the previous government's agenda. There were recent reports that Oil India is looking to acquire close to 50 per cent stake in Numaligarh Refinery (NRL), a subsidiary of BPCL. Subsequently, BPCL