While the `Indica' factor has been completely factored in by the market, fund managers are now looking at the fresh round of rumours to buy Telco. According to brokers, several enquiries poured into the counter as rumours of the auto major spinning off its heavy and light commercial vehicles business into two divisions found way into the market. Market was witness to wild guesses to the extent that General Motors is likely to buy a stake in the car unit division in the near future, hence the exercise of spinning off the business into two. While the rumours could not be confirmed from the company, the stock registered a sharp spurt of nearly Rs 16 during the past two sessions to touch a high of Rs 205.35 on Tuesday. The market was also agog with rumours that Morgan Broking has purchased about 4-5 lakh shares in the past two trading sessions.Bringing back Satyam
On yet another dull day for IT scrips, the Satyam counter on the bourses closed at Rs 1278 from its Monday's close of Rs 1218 with hugevolumes. The counter clocked a volume of 18 lakh shares on BSE while 24 lakh shares changed hands on NSE. Amidst volatile trade, the intra-day low and high were Rs 1198 and Rs 1300, respectively.
According to sources, there were rumours in the market that Satyam had entered into an alliance with KPMG either for ERP or a software product. There were also rumours that the company was getting into E-commerce. The counter had seen a major selling pressure after the FII ceiling touched 28 per cent with UTI also stepping up sales at the counter. ``With this sell-off, the FIIs can buy a maximum of 2.5 lakh shares. In fact, one of the FIIs has already got permission from RBI to purchase 1.75 lakh shares,'' said a BSE broker.
NIIT in FMCG Fund?
In what may be construed as a very lose definition of fast-moving consumer goods, computer-education giant, NIIT is the top holding in Kothari Pioneer FMCG Fund. As on May 31, 1999, the fund held 34,900 shares of NIIT with a market value of Rs 5.62 crore. As perKothari Pioneer's latest portfolio disclosure, the scrip has a weightage of 14.69 per cent in the FMCG fund which has total assets of Rs 23.10 crore. NIIT also figures in Bluechip, KPIT and Prima Plus funds of Kothari Pioneer. Zee Telefilms is the second holding in the FMCG Fund with a weightage of 10.31 per cent.
Contributed by Nalini D'Souza and Aabhas Pandya
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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