MARCH 30: Unit Trust of India is bullish on the domestic stock market andhas predicted that the Bombay Stock Exchange 30-share index at 5,900 pointsin three months time, its senior executive director Basudeb Sen said here onThursday.With the Sensex slipping below the psychological 5,000-mark, marketmen seemconcerned over a possible sell-off in the information technology stocks.UTI, however, seems to be unfazed by the recent slide in the markets whichhas been eroding market capitalisation by close to 15 per cent. "The marketseems to have bottomed out and is expected to firm up', Sen said.
Sen said that buying from the overseas markets does not make sense as theIndian companies' shares listed overseas in ADRs or GDRs are going at asubstantial premium to the domestic price. It may be recalled that theGovernment recently allowed mutual funds to invest in Indian companieslisted abroad.
Sen cited the example of Infosys where the ADR price is quoting at asubstantial premium to the current domestic price. Sen also ruled out anyconcerted attempt by UTI to sell large chunks in the shares of State Bank ofIndia (SBI). There have been reports that UTI had been on a selling spree inthe SBI counter to bring down the prices before its proposeddomestic-cum-overseas share issue.
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