Bearish undertone in Lyons Range

By Our Special Correspondent

KOLKATA, AUG. 19. Share prices on the Calcutta Stock Exchange ruled a mixed last week, the close being somewhat disappointing with values surrendering most of the gains recorded in the early stage, on profit booking.

The earlier upward movement in prices was assisted by fair support forthcoming from foreign institutional investors whose interest was noted in both new and old economy counters. Several other shares also looked up in the wake of the rally in prominent shares resulting in widespread gains by mid-week.

Pharmaceutical shares remained in the limelight with Ranbaxy gaining further ground in enlarged dealings assisted by brisk support based on expectations of helpful news for the industry.

Cement shares improved early on optimism that the Prime Minister's special package programme to link village roads with highways would generate fresh demand for the commodity. But these shares met with profit booking at higher rates. With the result gains were wiped out in most cases.

Mirroring the price fluctuations, the CSE 40-share index eased to close at 1726.59 against 1734.80 on August 10. The closing tone was somewhat bearish, operators said, with prospects of a further erosion in values next week.

The foreign institutional investors whose support is the main stay for the market effected both purchases and sales of small parcels during the week under the review.

The market is certain to improve as the good monsoon will enable the harvesting of record foodgrains and other crops. This will in turn generate demand for a variety of industrial products including those for agricultural operations.

But it is pointed out that the market regulator should take early measures to help enlarge business volume in the major bourses which have been experiencing lean days.

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