Firm undertone may continue

B. Krishnakumar

THE average badla rate for the market was around 11 per cent per annum, down by about 0.20 per cent from the previous week's 11.2 per cent.

The aggregate carry forward/badla turnover at Rs 2,433.59 crore, was marginally high in relation to the previous week's level of Rs 2,428 crore.

After an initial weak trend, the BSE Sensex staged a come back on Thursday. The firm trend at the tech-laced Nasdaq market coupled with the strong rally in Infosys Technologies resulted in reversal in market sentiment. This also arrested the sharp decline seen in the Sensex over recent weeks.

With Infosys moving into the no-delivery period for the next two settlements, there is a possibility that the firm undertone in the stock may continue. The other infotech heavy-weights such as Satyam Computer, Wipro and NIIT could rule weak. In the case of Wipro, the outstanding volume declined by 35.7 per cent. Badla volume in NIIT too declined by 36.3 per cent while the stock attracted ulta-badla or backwardation charge. Given the sharp run up in price in the previous settlement, NIIT could see some profit booking in the ensuing settlement.

There was a sharp rise in carry forward volume in stocks such as ITC, Hindustan Lever, Reliance Industries, Amara Raja Batteries, Bombay Dyeing and HDFC Bank. The share price of ITC, Reliance Industries and Hindustan Lever could rule firm in the following week. The recent rise in value in Amara Raja Batteries and Bombay Dyeing could probably spill over to the next settlement as well.

In the MTNL, Nestle India, Cummins India and Grasim Industries' counters, there was a sharp decline in badla volume.

These stocks could see a relatively soft trend in price in the near term.

Bajaj Auto, Dr Reddy's Laboratories, HDFC Bank and Hero Honda attracted ulta badla. The unimpressive financial performance of Bajaj coupled with ulta badla indicates that the stock could head towards lower levels in the immediate future.

SmithKline Consumer Healthcare's improved performance appears to have infused positive sentiment in the stock. The badla volume jumped 23 per cent while the hawala rate increased from Rs 395 to Rs 405. Going by the recent trend in badla trading sessions, the scrip could see a firm trend in the near term.