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Convergence stocks fuel recovery

Krishnan Thiagarajan

BL Research Bureau

LED by the sharp recovery in the convergence stocks -- the IT, media and telecom triad -- the BSE Sensex and the broadbased BL-250 Index staged a comeback of sorts last week. While the broadbased BL-250 Index appreciated by 9.77 per cent, the BL Technology Index surged by 20 per cent during the week. Apart from the sharp rise in top-rung stocks, the resurgence was sparked off by a sharp uptrend in second and third-rung stocks. Even the industry sub-indices recorded a smart rise , with the BL-Computer Hardware and Office Equipment Index appreciating by 17.3 per cent vis-a-vis a 24.8 per cent jump in the BL-Computer Software Index.

Among the second and third-rung stocks which spiralled during the week were SSI, Onward Technologies, Sierra Optima, DSQ Software, Aftek Infosys, TVS Electronics, Mastek, Aptech and Leading Edge Systems. The top three gainers during the week were SSI whi ch appreciated by 61.97 per cent, Onward Technologies, 61.80 per cent, and Sierra Optima -- 56.89 per cent. The frontline IT companies such as Infosys Technologies, Satyam Computers, NIIT and Wipro recorded modest appreciation ranging f rom 16 per cent to 25 per cent.

The week that was

I NIIT has made a strategic investment in OneWeb Systems Inc, an Atlanta-based Internet solutions company, as a part of its strategic alliance programme.

I Infosys Technologies has announced that it proposes to provide local support to banking product customers in Mauritius. It marks an ongoing effort by Infosys to consolidate and emerge as a banking solution provider of choice in this market.

I Television Eighteen has acquired Money Control Dot Com Pvt Ltd, the holding company of the finance portal www.moneycontrol.com through TV18's Internet subsidiary (E-Eighteen Dot Com (P) Ltd).

I Information Technologies India is setting up a wholly-owned subsidiary in Australia. Besides, it proposes to sell the company's URL, www.palmgreetings.com, to a wholly-owned subsidiary company, ITIL Online Private Ltd.

I As part of long-term strategic initiatives in the area of convergence business, Zee Telefilms is acquiring up to 26 per cent equity stake in Aplab through a preferential allotment. Aplab is making a preferential offer at a price of Rs. 90 per share, ag gregating Rs. 11.7 crores.

The earnings call

I Advent Computer Services has reported post-tax earnings of Rs. 1.94 crores on a turnover of Rs. 2.29 crores for the quarter ended March 31, 2000.

I Amex Information Technologies has recorded a turnover growth of 71.46 per cent to Rs. 14.54 crores for the year ended March 31, 2000. The post-tax earnings have grown by 73.90 per cent to Rs. 3.86 crores.