Tech stocks gain up to 45 per cent since December 27 on hopes of better show

Nitin Mathur

New Delhi, Jan 3: Tech stocks have been hogging the limelight on expectations of better financial results. These new economy stocks have gained up to 45 per cent in less than a week. Second rung A-group counters, including many K-10 stocks, recorded major gains and Rolta, CMC, Mastek, Silverline, Aptech and Trigyn were amongst the top gainers, rising 35-45 per cent since December 27.

However, market favourites proved to be the laggards, with Infosys and Wipro gaining only 10 per cent and 15 per cent respectively.

On Thursday, A-group tech stocks had a field day, gaining up to 20 per cent during the day, thanks to a turnaround on the Nasdaq index which closed 1.48 per cent higher. As many as 17 out of 20 volume toppers on BSE belonged to the technology sector and accounted for about 95 per cent of the volumes of top 20 stocks. NIIT and Zee Telefilms hit the 10-per cent upper circuit filter, while Mastek was stuck at the 20-per cent circuit filter during the day.

Interestingly, all K-10 were amongst the top 15 volume toppers on the BSE. The four most-traded stocks were Satyam, HFCL, Global Tele and Zee Telefilms. All belong to the K-10 list. These ten stocks together clocked a volume of whopping Rs 869 crore.

These stocks, most of which are considered as second rung, have overshadowed the market performance of premier tech stocks.

According to a Delhi-based broker, ‘‘Activity in many of these stocks is operator driven. However, bottom fishing and expectations of better results is also perking up these stocks which had been battered to low levels, specially better stocks like Satyam and Digital.’’

The broker added that in many of the top gainers, scrip specific factors have also played a vital role in perking up sentiments.

For instance, the takeover of CMC by the Tatas and the subsequent failure of its open offer to get the stock delisted, led to a re-rating of the stock. Mastek is also rumoured to be close to bagging a Rs 70-crore order, which made the stock shoot up by 20 per cent on Thursday.

Besides the top gainers since December 27, others like Polaris Labs, Satyam Computer, HCL Infosys, DSQ Software, PSI Data and Sonata Software have also recorded handsome gains in the range of 32-24 per cent.

Others like Hughes Software, Digital, Wipro, HCL Technologies, NIIT and Infosys have also shown healthy returns of 10-16 per cent during the period.