Dismal show by VSNL

Anand Ram

Videsh Sanchar Nigam: Videsh Sanchar Nigam Ltd (VSNL) which has one of the highest tariffs for long distance international telephony in the world, was stopped in its tracks with the Telecom Regulatory Authority of India's (TRAI) decision to throw open the field to private operators.

As a consequence, this stock recorded one of the most dismal performances in the bourses during the week. It shed almost 13 per cent over last Friday's close at Rs 254.10, to end the week at Rs 221.45. Volumes too soared close to nine-fold to 9,01,953 shares, as investors flocked to jettison their holdings.

Hindustan Zinc: Another state-run enterprise, this stock too became a victim of bureaucratic faltering. The government finally decided not to accept the bid of Sterlite - the lone bidder - citing the value of the tendered bid to be far too low of the reserve price set for the disinvestment offer. Following the botched attempt at privatisation, the stock lost heavily by 13.5 per cent, to close at Rs 19.55. Volumes continued to build-up steadily through the week to 1.95 lakhs, as more shares changed hands. A respite did enter the counter towards the end of the week, in the form of a rise in zinc prices at the London Metal Exchange, firming the share's price too in the process. However, the aggregate effect remained downcast.

Jain Studios: The company, primarily in the entertainment business, was among the significant gainers in the week. Largely dormant till about now, the stock rallied as investors started to take positions after recognising that it was priced below what would have been indicated by fundamentals. As bargain hunting took wing, the stock shot up to more than a quarter of its value in price, to close the week at Rs 35.40. Volumes too picked up to 8922 shares.

SSI: In the software development and services business, this company featured prominently on the Volumes roster. Volumes doubled approximately from 13.65 lakh shares from the previous week, to 26,42,338 shares this Thursday. The primary reason is that the company's promoters have raised their stake by 5 per cent through the creeping acquisition route. This was also followed by a corresponding increase in price from Rs 153.35, to close at Rs 187.65, a gain of 22.37 per cent.

Indian Petrochemicals Corporation: This stock continues to rally in expectation that the Government may finally dispose off its stake in the concern to a private sector candidate. The Cabinet Committee on Disinvestment's (CCD) meeting has culminated in a tentative decision to hive off 51 per cent of the Union's stake in the concern. The volumes pivotal attests to investor renaissance as net increases logged 99808 shares to close at 1,87,127 shares. Prices ended the week at Rs 48.35.

Balaji Telefilms: A major producer of television serials, this company was the focus of the institutional investor's shopping basket.

Prices rose through the week from Rs 267.55 from last week's close to Rs 273.10, this Thursday. There was an accompanying increase in volumes too as they closed marginally higher at 2,03,581 shares.