IT stocks under correction

By A Special Correspondent

CALCUTTA, MARCH 12. The unabated bullish trend that marked trading in infotech shares in the recent past took a pause last week on the Calcutta Stock Exchange with most of them undergoing a perceptible correction.

Some recovery in values of selected shares was witnessed on the last trading day (Friday).

Though the long awaited correction in the infotech group is welcomed, operators as well as small and medium investors are concerned over the depressing state of some of the popular shares which have recorded substantial losses during the week under review. With trading sentiment influenced by the hike in tax on dividend paid by companies, most of the cyclical shares remained neglected and in the wake of fresh bear pressure values in them dipped markedly.

With prices sliding down, the representative indices too eased with the Sensex pegged at 5301.70 points against previous 5378.27 points. The CSE's 40-share index also declined closing at 2238.56 points against 2335.68 points.

The list in general finished with a broad front of losers. Some of the IT scrips showed gains at finish, despite the profit booking that was noted in the second half of the week. The business volume was fair and the undertone at close was a good deal quiet.

Satyam Computer which hit a high of Rs. 7,179 slipped back to close at Rs. 6,276.40 (Rs. 6,158) because of the profit booking at higher rates. Other setting higher in the specified group included ITC at Rs. 862.50 (Rs. 690.40) and DSQ Software at Rs. 2,559.80 (Rs.2,010.80).

Hind Lever, Grasim, Larsen and Toubro, ACC, Reliance, Hindalco and a host of others in the list closed well below the rates prevailing at the end of the previous week. The cash listed shares also ruled quiet with prices here tending downwards in sympathy with the specified list and partly because of investor's apathy to absorb fresh holdings.

Informed market operators welcomed the technical correction in the infotech group as they were convinced that such brakes occurring once in 2-3 weeks are absolutely essential for the overall health of the market. But they were less cheered by the course witnessed in most other popular shares.

Even so, it is too early to say that the current levels are offering an excellent opportunity to investors to replenish their holdings for the simple reason that the drift has not shown any sign of having ended.

Send this article to Friends by E-Mail

Section  : Business
Previous : A New Deal for telecom
Next     : Budget: A let-down for small investor