Renewed interest in the offing?

Sanjiv Shankaran

THE average badla rate for the day's session was about 8.2 per cent, down by 1.6 percentage points in relation to the previous week's rate.

The aggregate badla/carry-forward value was Rs. 2,183 crores, lower by Rs. 190 crores in relation to the previous week's turnover.

The BSE Sensex drifted lower during the course of the week to close at 4,186 points, down by 91 points in relation to last week's close. Substantial sales pressed by foreign institutional investors (FIIs) over the last two months have been primarily responsible for the 671 points (13.81 per cent) fall in the Sensex over the last three weeks. However, the FIIs trading data for the week gives a faint indication that the phase of significant selling may have come to an end.

The impressive performance in the first quarter by a significant number of companies may provide the foundation for another round of buying in the near-term. But for now, the market seems to be searching for some sort of direction. Therefore, the movement may be range-bound for some time.

A mixed bunch of stocks recorded higher level of activity during the badla session. Among the prominent ones were, Glaxo India, Global Tele-Systems, Bharat Forge, Gujarat Gas, Hero Honda, Sterlite, Tata Engineering and TVS Suzuki.

The two-wheeler manufacturers, Hero Honda and TVS Suzuki, have shown contrasting performances in the recent past; TVS Suzuki has not had good year financially so far. In the last settlement, both the stocks slipped. The buying interest in the badla session suggests that there may be a rebound in the coming session.

Among the other scrips that may see a rebound after a weak trend in the last settlement are Tata Engineering and Sterlite Industries. The infotech major, PentaMedia Graphics, too may see a rebound after a disappointing price trend in the last settlement.

A couple of other scrips that may record a moderate rise in price in the coming settlement are Dabur, Gujarat Gas and Crisil.

SmithKline Beecham Consumer registered backwardation after the rally over the last few days. The stock may be in for a weak trend in the near-term.