Sensex up after a volatile day

Stock market update for June 22, 2000

Considerable volatility marked the proceedings of the markets on Thursday. The benchmark BSE Sensex commenced on a positive note opening with a gap of 17 points over its previous close at 4,749. However, profit booking at higher levels saw the Sensex entering negative territory in the early minutes of trading. Thereafter, the Sensex hopped between positive and negative territories for the rest of the day. The volatile day finally ended on a positive note with the Sensex closing at 4,794 gaining 63 points over its previous close.

Infotech stocks witnessed a mixed response on the bourses. Among the IT triangle that forms a part of the Sensex, IT major Infosys Technologies firmed up after hitting an intra day low of Rs 8,350 to close at Rs 8,505, up less than one per cent over its previous close. Trading circles expect the company to announce excellent first quarter results, which might see the stock appreciating further. However, some feel the stock is quoting at a slightly higher valuation. Satyam Computer Services closely followed Infosys to end the day at Rs 3,120, up less than a per cent over its previous close. Market men are currently divided over the future direction of the stock but expect it to remain volatile. The only loser among the IT Sensex stocks was NIIT. The stock closed at Rs 2,283, down four per cent over its previous close. Players see a good buying opportunity in the stock at these levels. Among the other stocks, CMC topped the gainer list at 12 per cent with DSQ Software, SSI, Tata Elxsi, KLG Systel, Pentamedia Graphics, Leading Edge System, Tata Infotech and Fujitsu ICIM being the other gainers. Losers included Onward Technologies, Nucleus Software, Lee and Nee Software, Ram Information, Sonata Software, Amex Information and Maars Software.

According to trading circles, buying interest towards the end of the day in the two index heavyweights, Reliance Industries and Hindustan Lever helped the Sensex recovery. The outcome of the cabinet meeting on PSU divestment, to be held tomorrow, is expected to dictate the future course of markets. Going forward from here, players speculate a firm opening on Friday and the volatility to stay.