The re-rating game has once again caught the fancy of several fund managers as leading FII brokerage houses have shot out reports of `best buy' at the counters of Reliance, Telco and Tisco. According to market sources, after Reliance, Morgan Broking has now re-rated Telco as a good buy at the current levels.

Similarly, DSP Merill Lynch has re-rated Tisco and advised their clients to pick up the stock at Rs 100 levels. Although it could not be confirmed from the brokerage houses, market was agog with rumours that while Telco would touch Rs 250, Tisco would touch a high of Rs 130. It may be recalled that during the week ended May 27, a similar re-rating in the case of Reliance by Morgan Broking had helped the stock breach the crucial barrier of Rs 167.

FII interest

Although the figures released by Sebi for May 30 showed FIIs as net sellers to the tune of Rs 8 crore, market was agog with rumours that Morgan Broking had picked up huge chunks ofTelco, Larsen, Reliance, Ranbaxy Laboratories, SBI and ITC at the lower levels on Monday afternoon. Similar FII buying interest has been cited at the counters of Alpha Drugs, Pidilite and Cochin Refineries.

According to market sources, the broking outfits of Indosuez WI Carr, DSP Merill Lynch and Jardine Fleming have been taking fresh exposure at select industry heavy weights like Telco, IPCL, Reliance and Tisco. The decline in FII volumes on Monday, according to brokers, was attributed to the absence of US and UK based funds.

UTI selling B group stocks

Unit Trust of India has once again kicked off the exercise of getting rid of dud `B 'group stocks. According to market sources, the fund has been selling aggressively at the counters of Bindal Agro, ITI and Nath Seeds & Pulp.

Although, fund managers remained tightlipped about the entire operation, huge cross deals reported at the counters of several non-specified group counters like DCM, JCT Electronics, JK Corporation, JK Industries and LaOpala mirrored the sales pressed by UTI at current levels.

According to market sources, the fund has assigned this task to select domestic brokerage houses who in turn get the benefit of executing a part of UTI's purchase order at a latter stage. However it could not be confirmed.

However, UTI has been reportedly a buyer at the counter of Satyam Computers, Larsen, MTNL, Gujarat Ambuja and Infosys Technologies.

Vikas WSP back in limelight

Vikas WSP, the zero-debt, company was back in the limelight as FII holding limit in the company was increased from 24 to 30 per cent. According to market sources, a leading Delhi-based NSE broker was reportedly a buyer at the counter. The broking outfit was rumoured to have picked up nearly 1.5 lakh shares in the price band of Rs 385 to Rs 400 levels. UTI, according to market sources, provided a marginal supply of about 11,000 shares. The stock registered a gain of 7.67 per cent to close at Rs 400.

Zee commands backwardation on NSE

Zee Telefilmsclosed at a premium of Rs 43 on the NSE despite today being the last day of the current trading account. On the BSE, the counter closed at Rs 1,502 after clocking an average price of Rs 1,512. The premium, according to brokers, reflected the backwardation charges paid to cover up the short positions liquidated on May 26 and 27.

Contributed by Nalini D'Souza