India: SEBI’s decision buoys markets

BOMBAY, 6 May — On Monday the BSE Sensex closed at 3,519.16 and the NSE Nifty at 1125.55. Then came the news from Reliance Industries which posted a net profit of Rs.5.40 billion for the quarter ending March 31, 2001, as compared with Rs.6.54 billion for the corresponding period last fiscal. The fall in profits was sweetened by the news that RIL would extend the program for buyback of equity shares for the year 2001-2002 for an amount not exceeding Rs.11.00 billion and upto a maximum price of Rs.303 per share. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Apart from that, it was also planning to increase the FII limit from the existing 24 percent to 49 percent of the paid up equity share capital of the company.

The other company, Reliance Petroleum posted a net profit of Rs.2.97 billion for the quarter ended March 31, 2001, on a total income of Rs. 75.72 billion for the quarter ended March 31, 2001. Even here, in RPL, the company is increasing the limit for FII investment to 49 percent of the paid up equity share capital of the company.

On the media counters, TV18 touched a new 52-week low due to its poor performance. The company’s net profit for six months ending March 31, 2001 fell 77 percent from Rs.161.4 million to Rs.35 million.

Cement major, ACC, for the quarter ending March 31, 2001, posted a net profit of Rs.571.7 million (loss of Rs.588.5 million) on sales of Rs.26.49 billion (Rs.23.82 billion).

Another company which disappointed was Global Trust  Bank.

It posted a net loss for the quarter ending March 31, 2001, at Rs.227.1 million.

Castrol was a major gainer on news that the Securities Appellate Tribunal (SAT) had ruled in favor of equal benefit to all shareholders in the event of a takeover directly or indirectly. The shareholders will gain from the raised price that SEBI insisted upon.

The day’s best result was declared by Grasim Inds which  reported a 203.83 percent jump in net profit for Q4 and 62.11 percent surge for the fiscal year 2001.

On Tuesday the markets were closed. 

On Wednesday, the BSE Sensex closed at 3,538.42 and the NSE Nifty at 1,137.20.

The market declined but managed to settle as investors unwound positions awaiting the  outcome of a meeting of the Risk Management Group of the SEBI. After market hours, the market watchdog announced that it would lift the ban on short sales from July 2, 2001.

The Bombay High Court’s decision to reject the petition of the former BSE president, Anand  Rathi, challenging the suspension of his firms from trading also had an adverse effect on the market.

PSU stocks like BHEL, SBI, HPCL and MTNL attracted institutional buying support, following the Supreme Court decision. 

On Thursday, the BSE closed at 3,494.48 and the NSE Nifty Index at 1,122.05.

Cement stocks lost ground. For the quarter ending March 31, 2001, ICICI posted a net loss of Rs.3.395 billion (net profit Rs.3.94 billion) on an income of Rs.26.99 billion (Rs.22.82 billion).

Global Trust Bank (up 2.16 percent to Rs. 28.40) gained ground after RBI extended special liquidity support. Great Eastern Shipping declined ahead of the announcement of its results. After market hours, for the quarter ending March 31, 2001, the shipping major posted a net profit of Rs.545.9 million (Rs.322.8 million) on sales of Rs.3.24 billion (Rs 2.50 billion).  The company also announced that it would buy back its shares worth Rs.1.00 billion at a price not exceeding Rs.42 per share.

On Friday, the BSE closed at 3,514.59 and the  NSE Nifty Index at 1,130.05. Commercial vehicles major Telco rose following the company’s decision to raise the prices of its trucks by up to Rs.25,000. Automobile major Bajaj Auto  was subdued on expectations of a poor Q4 performance.

Among media stocks, Balaji Telefilms, hit 8 percent upper limit of the circuit breaker on reports that the company is reconsidering its decision to merge with Nine Networks.  Kesoram Industires was frozen at 8 percent upper limit of the circuit breaker after the company’s announcement of buyback of 15 percent of its equity at a maximum price of Rs 42 per share.

Gold was at Rs. 4,325 per 10 gms and silver was at Rs.7,425 per kg.

US dollar was at Rs. 46.85, pound sterling at Rs.67.25, euro at Rs.41.71, DM at Rs. 21.33, Saudi riyal at Rs.12.48, Bahraini dinar at Rs.124.11, Kuwaiti dinar at Rs. 152.30, Qatari riyal at Rs.12.85, UAE dirham at Rs.12.74 and Omani riyal at Rs.121.53.