Marketmen, though at the edge of their seats waiting for the buyback ordinance, ironically see the bullish fervour to last only a few trading sessions. Of the top ten holdings in the US-64 portfolio, as many as seven companies have yet to take permission from their respective shareholders for buy-back of shares. Of the top ten, only Reliance, Telco and Tisco have the approvals to buy back a part of their equity. US-64 has the top holding in ITC in terms of market value as on June 30,1998, where it holds 1.34 crore shares or 5.5 per cent of the total equity. However, ITC is yet to seek permission for reducing its equity capital. HLL also does not have the necessary approval. The UTI flagship holds over 7 per cent in Reliance's total equity of Rs 932 crore. As an equity analyst at a public sector mutual fund points out, once buyback comes into force, Reliance will be one of the foremost beneficiaries and thus help US '64 NAV to recover. However, even the initial euphoria at the Reliance counter has fizzled out even though it is one of the very few companies that has continued to fare well in the current recession and has the necessary money power to buyback shares from the market. ``Despite a good growth in sales, Reliance has been under a prolonged bearish phase due to the overall meltdown in the market and hence, lacks the strength to drive the market,'' says a Delhi-based broker.

The Reliance scrip touched a high of Rs 117 on October 27 in four trading sessions. However, the scriphas now fallen to Rs 113. ``The scrip may see some appreciation once the ordinance is promulgated but only a long-term rally can help US-64 crawl back,'' says a fund manager. ``Alternatively, depending on the buyback price the company announces will we see any rise in prices,'' he adds.

On the other hand, the scheme has a share in as many as seven Tata companies that figure in its top 50 holdings. These are Tisco, Telco, Tata Chem, Tata Tea, ACC, Andhra Valley and Tata Power. Unfortunately for US-64, most of these companies have been hit by recession. After a short spurt to Rs 114 from Rs 93, Telco is back to Rs 110. US-64 holds more than 10 per cent of Tisco's equity capital of Rs 367 crore. ``The initial euphoria regarding Tata group companies is over and the focus is now on fundamentals which do not show any immediate signs of recovering,'' says an analyst. Besides, US-64 is stuck with a number of PSU stocks which do not have permission to buy back shares.