For the ninth day in succession, Digital Equipments has been moving northward coupled with a surge in trading volumes. The stock has zoomed from Rs 169 to Rs 295. Market sources say, Indo Suez W I Carr has been a major buyer in the counter, picking up huge deliveries in the last two settlements at the NSE. Besides, rumours of the company hiving off its hardware division for a consideration of around Rs 100 crore is also driving the stock up. On Thursday the scrip froze at the upper end of the filter with an outstanding buy order of 3.43 lakh shares.Mutuals accumulate Vikas WSP:
Vikas WSP is said to be figuring prominently in the buy list of SBI Mutual Fund. Till recently, Vikas WSP was among the top ten holdings of Morgan Stanley Growth Fund. According to market sources, most of the delivery for Vikas WSP has been picked up by SHCIL on behalf of SBIMF and a couple of other mutual funds. Hectic buying by these funds has pushed the scrip beyond the Rs 220 mark in the past 10-12 tradingsessions.
Pharma stocks on the circuits:
MNC pharmaceutical stocks are touching new highs Ñ Burroughs Wellcome at an all-time high of Rs 838.75, Dr ReddyÕs Laboratories at Rs 620, E Merck at Rs 532, Pfizer at Rs 1,009.75 and Rhone Poulenc at Rs 1,246.50. "The multinational pharmaceutical companies have their pedigrees to draw from and launch in India. Also, with the DPCO likely to be relaxed these products may be launched at higher prices resulting in a healthier bottomline. With both product patents and DPCO relaxation these stocks have appreciated by almost 50 per cent", said a fund manager.
High expectations from Glaxo:
The MNC pharma major is expected to post a 23 per cent topline growth in the last quarter. The company had shown a net profit of Rs 47 crore earlier in the year but PAT is expected to increase to Rs 72 crore for 1998. This is expected to be after an additional extra-ordinary provision of Rs 10 crore and inclusive of profit on sale of assets of Rs 15 crore. A stockto look out for, say analysts.
IPCL, rich pickings:
As the government prepares to disinvest to a strategic buyer, the stock has been continually hitting the circuit filter on the upper side. From Rs 70 two days back, to Rs 76 and to Rs 83 on Thursday. The government is expected to sell the equity in IPCL to a foreign buyer at around a price of Rs 150.
FII activity:
Morgan Stanley Mutual Fund continued its buying in Tata Tea with a deal for 7 lakh shares. Capital International had placed a buy order for 2.75 lakh shares of ITC, also bought Castrol and Zee Telefilms. Schroders is reported to have bought Glaxo, while Canbank Off-Shore fund continued its buying in Sonata Software. DSP Merrill Lynch brokerage is reported to have bought one lakh ITC Ltd and Credit Lyonnais bought 15,000 HDFC. UTI bought 50-80,000 ICI India.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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