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Our Market Bureau
MUMBAI, DEC 18: Speculators were once again active at infotech counters, with institutional participants playing a negligible role in propping the sentiments of the market participants. While the BSE-30 share sensitive index continued to be range-bound in the band of 2,850-2,890 points, in the final countdown the index closed at 2,875 registering a net gain of 10.65 points.
FIIs and domestic institutions were net buyers on the Bombay Stock Exchange. While FIIs were net buyers to the tune of Rs 5 crore, net purchases of domestic institutions was pegged at Rs 6 crore.
Most of these institutional purchases, according to market sources, was centred at counters like Infosys Technologies, Satyam Computers and Raymond Woollen. While the company's announcement to meet on December 23 to consider a bonus issue, saw the Infosys counter flaring up by over 5 per cent to close at Rs 2,675.75, Satyam Computers breached the barrier of Rs 600 to register a new 52 week high of Rs 634.50 on the latest progress of thecompany to step into the internet service business.
Considering the general reserves of Infosys, which is pegged at a high of Rs 111.85 crore as on March 31, 1998, analysts seem to have made a strong case for the company to maintain the ratio of 1:1 in 1999. This led to a sharp spurge of over 3 per cent in its stock price. The stock was traded at Rs 2,850 at the kerb markets.
Rumours of Japanese based fund selling huge chunks of pivotals, however, continued to unnerve the market. Market was agog with rumours that while the Japanese fund had already sold a huge chunk of stocks worth $ 15 million, a sell order for over $ 28 million was in the pipeline, which would be executed during the course of the next week.
It is learnt that the fund manager of a leading FII has once again started concentrating at infotech counters. Typically, this time also the deals are routed through local brokerage houses. According to market sources, the sharp rise in the prices of Zee Telefilms and Satyam Computers was partlyattributed to the short covering activities on the last day of the trading cycle on BSE. Telco once again gained favour among market punters, with the stock hitting the upside of the price band on NSE. The stock was traded in the band of Rs 135 and Rs 142.60, the intra-day's low and high, respectively, to finally close at Rs 141.30.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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This story was printed from Net Express located at http://www.expressindia.com. Net Express provides a portal to India, with news from The Indian Express and The Financial Express along with sites on travel and tourism, the entertainment industry, the power sector, the environment and much more.
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