Rally in Mastershare: ``If the Union Budget exempts mutual fund dividend from income tax the tax free yield on Master Share will lead to massive buying on the counter,'' said a leading institutional broker. The fund has NAV of Rs 16.63 as on January 27. The conclusion has been drawn on the basis of the following grounds. The current market price of Rs 10 offers a substantial discount to the NAV and significant margin of safety. The fund has also consolidated its portfolio by reducing number of scrips and selling of marginal and small holdings. The fund has also increased its exposure in FMCG and diversified companies and reduced its over-weight in automobile industry. The top two holdings of the funds are ITC and HLL. However, the fund also has a large stake in PSU stocks like MTNL, HPCL, VSNL, BPCL, Bhel, IPCL and SBI. With reports of government disinvesting strategic stake in few PSUs and economic recovery, appreciation in future could add significantly to the NAV. Bullish on Brittania:Although Britannia Industries closed at the day's low of Rs 1,129 a section of FII fund managers seem to be bullish on the stock. According to a leading US-based fund manager, its broking outfit finds the stock attractive at Rs 1,120-levels given the fact that the company is likely to increase its hold in the dairy products area. Market estimates the sale proceeds from dairy products to increase from a low of 10 per cent to over 30 per cent.
Nestle's woes: However, investors seem to have a different opinion about Nestle. The bearish sentiment also seems to holding ground given the fact that the demand for coffee should be on the decline in the light of the recent devaluation in the Brazilian currency and the sharp fall in the demand for coffee exported by Nestle. However, it could not be confirmed from the company. Technical analysts, however, held a view that the stock has a strong potential of moving in the northward direction from Rs 518.50 where the stock got validated twice before.
Unwavering support for IPCL: After witnessing an initial hiccup, IPCL on Monday closed at Rs 114.90. Interestingly, after the market closed at 3.30 pm, UTI Securities reported a huge cross deal of 9.55 lakh demat shares at the counter of IPCL which was priced at Rs 120. The deal was reported at 3.42 pm on the Bombay Stock Exchange. According to market sources, UTI was the seller at the counter. However, the buyer seems to be a leading FII investor, said brokers.
Down with software: The much awaited correction in the heated software stocks seem to have arrived. With most of the favourites on the lower circuit, the bulls are caught without an exit. All the top line software stocks were major losers on Monday, with all of last week's speculative favourites settling on the lower price band early in the day. The hammering was so severe that it did not spare even the bell weather Wipro, Infosys and NIIT, not to speak of the numerous second line software stocks. Pentafour Software, HCL Infosys,Silverline, Rolta, DSQ, Onward Technologies, PSI Data and nummerous other third rung software stocks were stuck at the lower price band. Wipro lost about Rs 110 to close at Rs 3140, NIIT was down by Rs 95 to Rs 2450 and Satyam was down by Rs 52.50 to Rs 922.50
-- Contributed by Nalini D'Souza and Biju Mathew
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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