Bonus rumours helped the bulls strengthen their grip at the Pentafour counter, said market sources. During mid-session, while the stock was languishing at Rs 1,025 levels, rumours were floated that the company had intimated the BSE about their meeting on April 14 for bonus as well. In the light of these rumours, not only did the selling at the counter subside but the stock gained Rs 100 to close at Rs 1,125.

However, these rumours of bonus could not be confirmed. Besides the bonus rumours, the news of the company being awarded SEI CMM level III certification from the KPMG quality registrar brought in fresh fund based buying. According to company officials, Pentafour Software has achieved yet another milestone in being one of the first companies obtaining SEI CMM levelcertification for multimedia activities and varied lines of business.

A similar reaction was witnessed at other counters like Tata Tea and Vikas WSP where operators seem to be making strong grounds for a bonus.

According to market sources, considering the rose wood forest of Tata Tea which has a market value of over Rs 900 crore, the company is in a comfortable position to give a liberal bonus to its investors.

While Vikas WSP also found support at Rs 410 levels on account of bonus rumours, another rumour making the rounds was of domestic mutual funds re-rating this stock. According to market sources, SBI Mutual fund and UTI have accumulated this stock in a phased manner from Rs 90 levels.

Interestingly, Morgan Stanley broking was rumoured to have sold over 1 lakh shares at Rs 80 levels, where UTI was the first entrant. According to market sources, the company is scheduled to meet in May in order to consider a bonus.

Active institutions: Among other institutional transactions, the market was agogwith rumours that UTI picked up about 10,000 shares of HLL today, which helped prune the index fall. However, the FI was also rumoured to have sold heavily at the counters of Tisco, which comes in as a surprise for many as steel prices have firmed up worldwide. According to market sources, DSP Merill Lynch picked up substantial chunk of NIIT. Interestingly the 97 point fall in the Sensex on April 9, which was on account of the fluid political scenario, saw FIIs emerge as net buyers on the local bourses. Sebi's figures on FII transactions reveals that FIIs were net buyers on Friday to the tune of Rs 67 crore. Most of these purchases, according to market sources, was centered around blue chip software and FMCG stocks. On Monday, FIIs were rumoured to have picked up Satyam Computers (on the eve of results and bonus), Reckitt & Colmann and ITC Agro. Morgan Stanley Broking was rumoured to have bought huge chunks of ITC, Castrol and MTNL. Similarly, James Capel reported a huge deal of 14,200 shares at the counterof Cadbury at Rs 615. DSP Merill Lynch reported a cross deal of 13,500 shares at the counter of Cheminor Drugs.

Buying in Exide: The return of the managing director of Exide Industries infused new life at the counter. While the immediate reaction on April 9 was a recovery of Rs 3 on Monday, the stock hit the upper circuit of the price band at Rs 217 on the NSE. According to sources while UTI has been a buyer at this counter, the recovery was triggered off by short covering.