SC Effect On PSUs Continues; Sensex Slips By 39 Points

Mumbai, Sept 17: | Updated: Sep 18 2003, 05:30am hrs
The impact of the Supreme Court judgement on divestment of state-run refinery majors BPCL and HPCL was seen even on Wednesday and its effect was seen on other public sector undertakings (PSUs) share prices, which declined heavily and its impact was seen on other counters as well.

This resulted in the benchmark indices shaving off early gains of the day. Volatility marked most part of the session on Wednesday as was reflected in the choppy movements of 108 points intra-day of BSE-30 share Sensitive Index (Sensex). However the Sensex eventually ended with a loss of 39.40 points, or 0.92 per cent to end at 4,235.35 while BSE PSU index sharply crashed by 4.52 per cent or down by whooping 129.17 points at 2728.17.

The NSE S&P CNX Nifty Index shed 16.35 points to 1,341.60, coming off the days high of 1,377.45. The FE constituted FEfty also lost 38.55 points as it closed at 1556.86 on Wednesday.

HPCL (down 4.81 per cent to Rs 328.30) slumped from the days high of Rs 346 touched in the opening trades. The SC ruling hurt HPCL immensely on Tuesday itself, as the stock slipped from an early high of Rs 401 to Rs 344.90 at close Tuesday. Volumes in HPCL today reached over 55.31 lakh shares. Other PSUs like Indian Oil (down 5.38 per cent to Rs 360.60), Nalco (down 4.62 per cent to Rs 105.20), Engineers India (down 4.27 per cent to Rs 262) and Gail India (down 4.51 per cent to Rs 128.05) ended lower after remaining weak for most part of the session.

Hitesh Seth, technical analyst from Prabhudas Lilladher said Despite the weakness, the undertone of the market remains optimistic on a cautious note amid rising hope that economic growth will turn out stronger than expected this fiscal.

Meanwhile, FIIs turned net buyers on Tuesday (Sept 16), pouring in Rs 196 crore into the market. It is also to be recalled that they were net buyers to the tune of Rs 77.80 crore on Monday even as the BSE Sensex shed 112 points.

According to dealers, old economy stocks declined in the last half-an-hour of the session on increased selling pressure. Tech stocks, which led early gains, pared a good part of their early gains in the last hour of trading.

Cement pivotals also featured among the major losers on Wednesday. ACC (down 4.91 per cent to Rs 189.90) Grasim (down 2.90 per cent to Rs 597.70), L&T (down 2.60 per cent to Rs 298.25) and Gujarat Ambuja Cements (down 0.44 per cent to Rs 214.50) also declined after early gains.