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Anand Ram

MARKETS across the country held their breath for the gala event of the year - Budget 2002-03. The coup de grace affected bourses on Thursday when the Budget delivered a stinging blow to trader's sentiments.

After that, the week ended on an eventful note with counters swinging in directions that the Budget destined their fortunes to be.

Reliance Industries: Though the gains in this counter were nothing to write home about, developments through the week were momentous for the company. Share prices built up from the end of last week (from Rs 314.8) in anticipation of the Budget announcements and rose to Rs 324.75 on Wednesday. However, prices took a sharp knock despite the Budget having a neutral bearing on the company as trading sentiment soured across the board. Prices regained their composure as the Reliance group announced the merger of the company with its sibling, Reliance Petroleum, creating a behemoth in the offing. The merger has been construed as largely beneficial as it would result in operational synergies, a reduction in tax liability and availability of a depreciation shield. This outcome caused share prices to finish at Rs 322.15 on Friday, posting a weekly gain of about 2.3 per cent. Volumes were hefty at 26.55 lakh shares.

Ranbaxy Laboratories: Shares of Ranbaxy Labs were on a Ferris wheel through the week presenting an immense opportunity for gain (or loss!). The daily closing ticks oscillated by a huge margin though the prices pretty much ended up at where they began. Ranbaxy's share prices rose on Tuesday as it announced an agreement with US-based Penwest Pharmaceuticals granting it marketing rights to distribute partner's cardiovascular drug, in select markets. Share prices then took a sharp knock following its disposal of Specialty Ranbaxy Ltd and the herd effect of the Budget. Prices fell to Rs 819.45 on Thursday before recovering to Rs 842.35 - after the budgetary provisions of a cut in peak customs duty and the exemption of excise duty on anti-AIDS preparations rang a bell on investor's sentiments.

Hindustan Zinc: Share prices of HZL vaulted 5.4 per cent during the week as the Union Government decided to invite fresh bids from interested parties to acquire a controlling stake of 26 per cent in the company. To stimulate further interest in the sale, the Government has also declared an indemnity to the successful bidder against all future environmental losses that the company might incur on past operations, while under state control. Traders might have realised an upshot to this strategic sale and may hence account for the share price appreciation to Rs 31.25 on Friday.

Gillette India: Shares of Gillette India displayed a sticky price adjustment immediately after its parent, Gillette Company USA, announced that it has sought FIPB approval for the additional infusion of $20 million in its subsidiary. However, prices then zoomed up the price charts at over 13 per cent as markets viewed Gillette's decision to close down its loss-making Duracell battery unit with favour. Rationality set in, as prices settled at a more realistic level of Rs 386.65, posting a weekly gain of about 10.25 per cent.

TVS Electronics: Cash registers rang at this computer peripherals manufacturer as it announced a pact with security solutions provider VeriFone Inc to jointly develop and deploy VeriFone's electronic payment technology in India. Shares of TVSE traced a peak on price charts climbing to Rs 43.90 on Wednesday. They then succumbed to gravity to finish the week at Rs 38.20, posting a gain of 12.02 per cent in the process.

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