Old-economy scrips on comeback trail

B. Krishnakumar

THE average badla rate for the market was about 11.5 per cent per annum, down by about 0.8 percentage points from last week's rate of about 12.3.

The aggregate volume was also lower at Rs 2,588.61 crore compared to the previous week's volume of Rs 2,654 crore.

The decline in badla rate and carry forward volume is reflective of the cautious approach on the part of market players. With an extended week-end and a petro-product price hike announcement round the corner, market operators appear to have preferred to remain light on their carry-forward positions.

The carry forward turnover in top-line infotech stocks, such as Infosys Technologies, Wipro, Satyam and Global TeleSystems, saw a decline. The average carry forward rate was also down in these stocks. Against this backdrop, these stocks could see a depressed trend in share price in the ensuing week. Investors could look for opportunities to book profit in these stocks.

The Amara Raja Batteries stock continued to attract market interest. The carry forward rate and volume continued to move up, indicating sustained interest in the counter. The recent firm trend in the stock could well be extended in the forthcoming settlement as well.

While the new-economy stocks saw a decline in carry forward rate and volume, old-economy index heavy-weights such as HDFC, BHEL, BPCL, ITC and Hindustan Lever saw some increased market interest.

In the case of ITC, the carry forward volume jumped by about 38 per cent while the hawala rate decreased to Rs 715 from Rs 725.

After a rather weak trend in recent weeks, the Hindustan Lever stock could see a rebound if the badla trading pattern is any indication. The carry forward volume increased by about 27 per cent while the hawala rate decreased to Rs 210 from Rs 220. The stock could see a firm trend in the following settlement.

A few old-economy stocks such as Bajaj Auto and Reckitt & Colman attracted ulta badla or backwardation charge. The carry forward volume was also down in these counters, indicative of fading market interest in these stocks. The share price of these two companies could rule weak in the ensuing week.