Hence all further purchases would be allowed only after RBI clearance. According to brokers, this is likely to provide an opportunity to the bear operators to tighten their grip at the counter. The counter is also likely to witness a greater extent of volalitity in view of the freeze on FII entry. On Wednesday the stock closed at Rs 1,372.70 registering a marginal recovery of Rs 2.70.

Interestingly, select B group infotech counters like Citicorp Securities, Silverline Industries, Ramco, CMC and Maars Software registered smart recovery at the local bourses reflecting the institutional demand at these counters.

IVP: Sharp rise in volumes

IVP, a B2 group stock, registered asharp rise in the volumes on the negotiated segment of the BSE. The rise in volumes comes in the wake of the results announced by the company on May 31. IVP has notched up an increase of 139 per cent in sales to Rs 693 crore. Gross profit increased by 54 percent to Rs 21.25 crore compared to Rs 13.81 crore in the previous year.

Net profit also increased by 54 per cent to Rs 12.83 crore. The ratio of gross profits to sales has however declined as the major growth in sales came from trading, where margins have been under pressure.

The counter registered 16 cross deals aggregating 4.51 lakh shares at Rs 50. While the deals, according to brokers, were reported by a small time BSE broker, market was agog with rumours that a leading domestic mutual fund, is moving out of the counter.

KLG Systel eyeing US company?

Market rumours have it that KLG Systel is in the process of acquiring an American company which would give the company an entry into the US market. According to fund managers, KL Systel is adominant player in the CAD/CAM market catering to a broad spectrum of industries including the refineries, processing, steel and aluminium industries. The equity of the company is small (Rs 3.3 crore) and the floating stock is low. Entry into the US market would give a major upside to the company.

Institutional deals

Morgan Stanley Mutual Fund is learnt to have picked up Telco and 1 lakh shares of container corporation of India. The SBI mutual fund is rumoured to have bought Indo-Gulf fertilisers while an FII have picked up ICICI Bank. Canbank offshore fund is rumoured to have picked up a good amount of MRF tyres and L&T. Thanks to the rumours, punters are getting into IndoGulf Fertilisers.

Stock split

The much talked about bonus from ITC did not materialise. The rumour mill now has shifted its focus in the counter. The talk in the market is that the company is expected to announce a stock split very soon.