Indian shares end at 6 month low on profit taking

Thursday, 24 April 2003, 07:00 Hrs
Printer Print Email Email
MUMBAI: Indian shares ended at a six-month low Wednesday, as investors rushed to book profit after old economy heavyweight Reliance Industries disappointed the market with a lower-than-expected quarterly financial performance.

Mirroring the bearish trend, the market barometer 30-share Bombay Stock Exchange sensitive index or Sensex closed at 2,947.33, a loss of 38.21 points or 1.28 percent from its previous session's close.

Analysts say the market sentiment, which had turned cautious in the last couple of weeks' trade after blue-chip software companies projected gloomy business outlook, was further dented by the Reliance's financial report card.

"Investors were looking forward to Reliance's results for some positive buying trigger. But sadly this (the results) comes as another blow to the already sagging investor sentiment," said a market analyst.

"With the annual corporate earnings season drawing to a close on a negative note, I think the market would continue to be range-bound in the days ahead. There isn't any positive trigger in sight that can fuel share buying."

Reliance Industries Ltd., India's largest private sector business conglomerate, Wednesday said its fourth-quarter net profit rose 41 percent, helped by a rise in the prices of its products.

The company's profit for the fourth quarter ended March 31, 2003 touched 11.01 billion while gross sales rose 32 percent to 176.79 billion. The numbers, however, fell short of market expectations.

The company's profit in the year ended March 31 touched 41.04 billion, up from 28.31 billion in fiscal 2001-02. Gross turnover registered a growth of 14 percent to 650.61 billion.

After the results, Reliance shares rose as much as 2.5 percent to a high of 284.45, but it soon came under selling pressure and erased most of its early gains. Shares of Reliance finally closed with a loss of 2.5 percent at 270.60.

Consumer goods giant Hindustan Lever lost 2.5 percent to touch 140.15, State Bank of India was down nearly one percent to 287.40 and tobacco major ITC closed with a loss of 0.1 percent at 664.

Counters such as Cipla, GlaxoSmithKline, Dr. Reddy's Laboratories, HDFC, Punjab National Bank, Union Bank of India, Andhra Bank, and Bank of India also closed in the negative zone.

In the tech sector, Hyderabad-based Satyam Computer closed with a loss of 5.6 percent at 149.75 after coming off from its inter-day highs on selling pressure after recent gains. The company will unveil its result Thursday.

Infosys Technologies, India's largest listed software exporter, ended 1.4 percent lower at 2,881 and HCL Technologies, a New Delhi-based software development and services major, fell 1.5 percent to 142.95.
Source: IANS
GST rate cut to spur Bengaluru
The realty market in India's tech hub is set to grow as lower Goods and Services Tax (GST) rate..
Fossil Group sells smartwatch
Global watch and accessories maker Fossil Group has announced to sell its smartphone technolog..
SpiceJet plans aggressive
Budget passenger carrier SpiceJet plans to aggressively expand its international networks to fl..
Ola raises Rs 400 cr for electric
Leading ride-hailing cab aggregator Ola on Friday said it raised Rs 400 crore from its early in..