Rumours of `bomb scare', not only at the Bombay Stock Exchange but also at the National Stock Exchange, left market participants confused. ``We were not allowed to either step into the premises of BSE or NSE, this led to the thinking that the bomb scare was not merely a rumour,'' said a broker. However, a section of brokers has now been convinced that it is yet another stunt of the bear operators to create panic in the market and make an exit, as the badlas are expected to be the highest for the year on March 20.Activity at KLJ Systel counter: After betting on the front line software stocks, punters have now turned their attention to the second line IT stocks like KLJ Systel, which is only listed on the BSE. The stock is currently quoting in the range of Rs 230-250. According to market sources, the company is planning to place a huge chunk of shares with FIIs at the current market price. Company's equity is pegged at a low of Rs 3.18 crore. The bullish mood has also been attributed to the huge refinerysoftware order bagged by the company from Shell. Although the news could not be confirmed, fund managers claim that the company is likely to register a substantial jump in its export earnings on account of this order.
Is the big bull back? According to market sources, the big bull has once again re-entered the market at the counters of Eicher Ltd, Navnit Publications, Centak Chemicals and Tata Elxsi. One hears of various rumours, starting from mergers, acquisitions to the company circles consolidating their holding in the company. Although none of the rumours could be confirmed, the net effect has been that the stocks have been rising substantially amidst huge volumes.
Reshuffling portfolios: The end of the fiscal 1998-99 on the BSE, saw operators and fund managers reshuffling their portfolios in order to adjust their taxable incomes. Huge volumes were registered on the negotiated segment of the BSE. Even low priced stocks like BILT, Dena Bank, GE Shipping, Kajaria Ceramics ICICI and IDBI Bank registeredhuge cross deals on the bourse. Stocks like IPCL, Glaxo, BSES, Dr Reddy's, HCL Infosystems, Hindalco, Infosys Technologies, MTNL, Pfizer, Sail, Satyam Computers, Smithkline Beecham and Videocon Int. registered huge cross and negotiated deals on the local bourse. Interestingly, most of these deals were reported by leading domestic brokerage houses who contributed about 40-55 per cent of the business on the BSE. According to market sources, domestic MFs like SBI MMF and LIC MF were rumoured to have booked profits at the counters of CMC and select pharma counters like Glaxo.
-- Contributed by Nalini D'Souza and Parul Monga
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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