In the last couple of sessions, the number of advances in the cash group hasgone up from 597 to 700, while that in the specified group has fallensubstantially from 110 to 61. Besides, even in a lacklustre market, as manyas 39-50 cash scrips have touched a new high. On the other hand, not asingle Group A stock has scaled a new high in the last two days.

The resurgence of the mid-cap stocks is understandable in view of the highprice-to-earning multiple of most large-cap stocks. The average PE of the 30Sensex stocks, for instance, is 32.95, while the more fancied stocks in thespecified group command a PE of over 70! The scope for appreciation is,therefore, limited in the short-term. On the other hand, the average PE inthe cash section is below 15, leaving room for further appreciation. WithFIIs turning sellers once again after a short buying stint, the high-pricedcounters are no longer witnessing the kind of purchases they had attractedbefore. ``Even before the current selling spree, FIIs were buying in verysmall quantities which were not enough to attract operator interest,'' saysa broker.

With the limelight no longer on the frontline stocks, punters have begunbargain hunting in the cash group. ``With many fundamentally-strong stockstrading at an attractive PE, the cash group is a fertile hunting ground,''adds another broker. According to him, ``Even institutions are reportedlyselling high-priced specified stocks in a bid to reshuffle their portfolioand making purchases in fundamentally strong, low-priced cash shares.'' Thefact that 56 cash group stocks are entering the compulsory demat mode by themonth-end (November 29) should further ignite institutional buying in thesecounters. The list includes Aftek Infosys and KLG Systel, both of which arecurrently quoting at their respective highs.

The gains in the cash group in the last one fortnight have been as high as93 per cent. Lakshmi Overseas Industries, a commodity trading company, hasalmost double its value since November 4 to Rs 32.75. An exporter of riceand other commodities, the company's profits have been growing at a fastpace. Despite the slowdown of rice exports, Lakshmi Overseas has managed tohold ground. KLG Systel has soared by over 70 per cent to Rs 430 followingfresh orders and the acquisition of a US company. Aftek Infosys has gained64 per cent from Rs 340 to Rs 557.2, a new 52-week high.

The IT company is known for its contact-less smart-card-reading machinesinstalled in Mumbai's BEST buses (in a tie-up with Philips India). Thecompany has made a name for itself by developing and introducing innovativeproducts like personal data assistance machines.