Second-rung IT Stocks Rise Up To 54% In April As Bigwigs Lag

New Delhi, April 24: | Updated: Apr 25 2002, 05:30am hrs
Speculators continue to throng the second rung technology counters. The operators have been driving up these stocks which have outperformed the front-line stocks, according to brokers. The tech majors have been affected by the Gujarat crisis and lower than expected financial results. Counters like PSI Data, Tata Elxsi, Sonata, Rolta and Mastek have gained up to 25 per cent in the past two trading days. These counters have also gained up to 54 per cent since April 1.

In contrast, the front-line counters like Infosys Technologies and Satyam Computer have gained only upto 9 per cent, even as the latter declared a 3.4 per cent rise in net profit in the quarter ended March 2002 to Rs 115.15 crore as against Rs 111.34 crore in the corresponding period of the previous year. Other majors like Wipro and HCL Technologies have lost up to 5 per cent since April 1. During the period, The BSE IT index gained a mere 3.19 per cent and the BSE Sensex plunged by 2.5 per cent.

In the international markets too, the technology sector has been a non-performer. On Tuesday, the tech heavy Nasday ended in losses for the fifth day in succession, plunging 35.18 points. During the first two days of the current week, it has shed about 68 points.

However, the second-line tech counters continued their good show on the bourses. On Monday, PSI Data, KLG Systel, KPIT Infosys and Nucleus Software hit the upper circuit filter of 20 per cent on the BSE. Polaris Software, Sonata, NIIT, SSI and Aztec Software also spurted 5-15 per cent.

The trend continued on Tuesday as counters like Aztec Software, Tata Elxsi, Aftek Infosys, Rolta and Subex Systems surged 6-13 per cent. Hardware counters like TVS Electronics and MRO-Tek also jumped 7.3 and 6.44 per cent respectively. Other major gainers during the day included Infotech Enterprises, Mastek, GTL Limited, Ramco, PSI Data and Sonata.

PSI Data was among the top gainers during the past two days and the current month. The stock closed at Rs 196.65 on Wednesday, gaining 53.75 per cent since April 1 when it closed at Rs 127.9 and 25.41 per cent since Monday when it closed at Rs 156.8.

Tata Elxsi also ended at Rs 115.25 on April 24, recording a gain of 48.42 per cent since its close of Rs 77.65 on April 1. The counter has also gained 12 per cent in the past two trading days.