While brokers at large seem to have adopted a `wait-and-watch' attitude in view of the fluid political scenario, operators continue to remain bullish at the counters of Paper Products, VXL Instruments and Voltas. According to insiders, top fund managers including SBI Mutual fund and ILFS are slated to meet the company officials of VXL Instrument in a closed door meeting on Wednesday. The exercise, according to sources, is to place the company's shares with these domestic funds. However, the news could not be confirmed. The stock was locked at the upper limit of the price band at Rs 129.60. It may be recalled that a leading Mumbai based brokerage sent out buy signals to their clients at Rs 32 levels in February this year. Since then the stock has been continously rising. Similarly, Paper Products and Voltas registered gains to the tune of 7.9 per cent on rumours of UTI and LIC Mutual fund being fresh entrants at these counters at these levels.UTI reduces PSU exposure : While brokers were confused as to whyUTI is continously selling PSU blue chips like BPCL, HPCL and Bhel, the market buzz was that the selling has been prompted by the recommendations made in the Deepak Parekh committee report. According to market sources, the institution is committed to retain only 8 per cent of their fund exposure in such stocks. A similar sell off has been witnessed at the counters of Tisco. On the negotiated segment of the BSE on Tuesday, three deals aggregating to 1 lakh shares was placed at Rs 90.25. While the deal was reported by a leading institutional broker, market was agog with rumours that the block was placed on behalf of UTI.
According to market observers UTI bought into index heavyweights like HLL, ITC and Telco curbing the index from falling. In addition, purchases were made in Pentafour, NIIT, Colgate Palmolive and Infosys.
FII deals: Among the big deals reported on the BSE, Shipping Corporation today witnessed a single negotiated deal of 23.66 lakh shares. The deal, according to brokers, was reported at Rs17; while the seller was CSFB, the buyer was a local broker. Considering the huge equity of Rs 282 crores, brokers explained that the deal had no impact on the market. Similarly, Morgan Stanley Mutual fund counter also clocked a phenomenal deal of 50 lakh shares reported at Rs 7.10. Deals were reported at the counters of Telco, Peerless Shipping, Vikas WSP and Punjab Tractors. Interestingly, while Wockhardt was traded in the band of Rs 306 and Rs 327 levels, the counter witnessed a huge cross deal of 2.42 lakh shares reported at Rs 308. SocGen Crosby reported a huge deal of 4,500 shares at the counter of HDFC Bank at Rs 2,250. James Capel was reported to have placed a deal of 10,000 shares at the counter of Punjab Tractors.
A singapore based FII is rumoured to have bought 50,000 shares of NIIT, Lakme was another counter where FII based buying took place with almost 40,000 shares being bought by the FII. A Honk Kong based FII is rumoured to have bought 50-60,000 shares of Raymong Ltd.
Software shocks:There was a great deal of chaos with the Satyam Computers stock moving downwards as the company declared results. Satyam moved up to touch a high of Rs 1,461 to fall again to close below its yesterday close of Rs 1,374 at Rs 1,337. "The market had expected the company to post a profit of around Rs 80 crore and the stock rose in the morning living up to expectations. But after the company declared results with a bonus issue of 1:1, the stock started falling and closed below its previous close", said a BSE broker. The stock saw good volumes at 34.63 lakhs at NSE and 27 lakhs at BSE. Along with the fall in Satyam Computers, all other software stocks followed suit.
Contributed by Nalini D'Souza and Parul Monga*
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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