Sentiment may have undergone a sea change over the last 18 months. But one thing has remained the same at that point in time and on Monday. Anybody who had followed conventional norms of valuation would have lost a good deal of money then and now. Those who said technology stocks were overpriced by conventional accounting standards missed out on what could possibly be a once in a life time dream run.On Monday, those who claim that technology stocks look attractively priced still run the risk of burning holes in what ever is left of their clothes.
Market seemed illogical even then and today also. Everybody is anxiously waiting for that elusive relief rally which is very badly needed to make players want to come to work.
Numero speak
If any institutional player is still holding on to shares of Wipro, the Numero Uno brokerage's advice to him is to dump the stock without further delay. Numero feels that the premium valuations look unsutainable and it makes to sense to stick to the creamy layer, in its view Infosys Technologies and HCL Technologies. HCL Technologies is attracting regular buying interest from the Prudent Fund and the Savvy Fund Manager. Infosys Technologies case seems to be that of a person who eats a lot but still remains thin. All the buying interest over the past few trading sessions is still not reflecting in the prices.
Relief work in full swing
Steady institutional buying continues at the Zee Telefilms counter, although it seems like a case of trying to rebuild a quake ravaged city. The reconstruction work will take some time considering that the stock has been really battered out of shape, not to mention the confidence of players who used to follow the counter. Last week close to 1.48 crore shares are reported to have been picked up between various institutional players. These included the likes of Cap-It-All, Tumble Ton, Bihari (Patnam) and to a smaller extent the Savvy Fund Manager.
On Monday also, there was some buying interest at the counter which helped it partially brave the ongoing storm at the bourses. Also, sensing the buying interest, bears with outstanding sale positions at the counter are slowly coming forward to cover it up.
Trivia
On Friday, the Why care brokerage is reported to have picked up close to 5.5 lakh shares of HFCL. The only silver lining to the cloud is that despite a double hatrick of 16 per cent lower circuits, sellers are getting an opportunity to exit their positions. Those who accumulating the shares at these levels are unlikely to be doing so without any game plan in mind. Good volumes were witnessed at the NIIT counter even as the stock completed a hat trick of 16 per cent fall. Massive unwinding of long positions is still in process although there is selective buying interest at lower levels.
Singapoori sarkar is reported to be a buyer at the ITC counter while Cap-It All fund is steadily accumulating HLL.
Santosh Nairsantoshnair@myiris.com
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
