Support for IT scrips on Lyons Range

By A Special Correspondent

KOLKATA, AUG. 26. Sustained support to some of the technology majors and select others which posted fair gains on the Calcutta Stock Exchange last week. Part of the buying was credited to institutional investors, operators said adding offtake on account of small investors continues to be negligible. Though the prime indicator, sensex at Mumbai, closed a shade higher, the 40-share CSE index dipped to be pegged at 1715.04 points compared to 1726.59 points. This is because of decline in index related shares. Hindustan Lever encountered moderate support initially but interest in the scrip later tapered off and in the wake of scattered profit taking part of the gains were lost. The scrip closed at Rs.219.00 against 218.10 on August 17.

Among the technology counters, infosys firmed up to close at Rs.3819.50 from 3669.00 on active support which was also in evidence in some of the other shares in this group. Sathyam Computer, Global Telesystem and Zee Telefilm were among those closing the week in the positive area. The Tobacco giant, ITC, was in great demand in the early part of the week pushing its values up to a high of Rs.759.10 but in the wake of subsequent profit booking it eased to be pegged at Rs.738.90. Cement shares by and large remained out of favour of buyers and prices where changed showed losses. This was attributed to absence of fresh buying in these counters.

The pharma counters, especially those of domestic companies, ruled distinctly firm reflecting renewed support which lifted their values appreciably in enlarged business volume. For instance, Ranbaxy went past the Rs.600 mark and closed at Rs.613.40 compared to Rs.569.00 at the end of the previous week. Elsewhere in the list there was little doing and price fluctuations confined to a narrow range throughout the week under review with some closing in the minus territory. Marketmen are anticipating that the improved sentiment that marked trading in selected shares will persist in the coming week with interest of buyers spreading to other counters in both the new and old economy group.

According to leading market analysts, the prolonged bearish trend in the market is now nearing its end and that a bullish tone is certain to begin in the very near future. Though volumes on the bourses are still well below the past averages, there is optimism that this will undergo a perceptible change shortly with both foreign and domestic institutions effecting sizeable purchases. In such an event, it is pointed out, there is every chance of a back up from the individual investors, including small investors. It is, however, suggested by some prominent groups that the small investors should now think of investing in equity funds through the medium of mutual funds.

In the opinion of those recommending investment through mutual fund by small investors, the bearish trend in most of the bourses for a long period has brought about an overwhelming sense of depression. However, they pointed out, these are classic signs of the end of the bear market and the start of the next bull phase. In this connection, attention is drawn to the fact that the bear on slaught when it began early last year did so as the economy was doing well and the infotech companies were growing at a high rate.

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