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IT shares recover on the back of tax concessions 

Press Trust of India  
New Delhi, May 4: Led by IT and telecom sectors, shares staged a significantrecovery to close with widespread gains on the Delhi Stock Exchange onThursday in reaction to market and industry friendly measures announced byYashwant Sinha.

Mirroring the upbeat mood of the market, the DSE benchmark index againcrossed 900-point mark to close 17.82 points higher at 911.89 pointsfollowing all-round rise in stocks value.

Stock brokers said announcement of a 10-year tax-holiday for computersoftware exports, concessions on housing loans and a reduction in indirecttaxes mainly brought back much-needed buoyancy on the markets. They saidexemption of venture capital funds from tax too influenced the sentiments.

"The announcement of fresh sops for several sectors mainly buoyed thesentiments," said a DSE broker adding that "almost all the frontline ITstocks were back in action and hit upper end of price bands'."Sea change in market's scenario forced bear operators to cover theirshort-positions", said another stock broker.

Amongst IT stocks, Satyam at Rs 2949.15 (2675), Wipro at Rs 2959.65 (2630),SSI Ltd at Rs 2980.15 (2660.85 ), DSQ Soft at Rs 766.40 (680.55), DigitalEquipment at Rs 661.30 (590.45) and SQL Star Rs 72.45 (68.05) were locked inthe upper end of price bands after exhausting daily price limit of 12%.Silverline Tech recovered sharply by Rs 26 to Rs 383 after bouncing betweenRs 332 and Rs 385, Pentamedia Graphic recovered by Rs 63.20 to Rs 5 64.70while Rolta up Rs 15.25 at Rs 320.25 on fresh spell of buying by allsectors.

NIIT at Rs 1850, Aptech at Rs 815, HCL Infosystems at Rs 370, Moser Baer atRs 314 and Tata Elxsi at Rs 107.20 also showed sizeable strength on renewedbuying.

Telecom sector stocks Himachal Futuristic spurted By Rs 80 .90 to Rs 891 andGlobal Telesystems rose Rs 101 at Rs 1070 on emergence of buying at lowerlevels followed by huge short-covering. Zee Telefilms stocks also regainedstrength after players including some foreign funds made sizeable purchasesand ended Rs 35.35 higher at rs 660.60.

Among cyclicals, Reliance Industries continued to show volatile movementsthroughout the session on hectic bouts of buying and selling by bulloperators and ended marginally down at Rs 335. 60 over previous closing ofRs 337.10.

Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.

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