IT stocks favoured on Lyons Range

By A Special Correspondent

KOLKATA, NOV. 18. A significant development on the Calcutta Stock Exchange last week has been the tightening of their grip over the market by bull operators resulting in a further sharp rise in share values in expanded volume of business. Buyers interest was centred on the technology counters which moved forward remarkably on sustained support.

The major spurt occurred on Wednesday during the brief special Diwali muharat session when, in the wake of a scramble on the part of buyers, prices spurted over a broad front pushing upwards not only the volumes but also the representative indices. Thus the market has extended its stay in the bull orbit. A good number of shares surged to hit new top marks, while others posted moderate to fair gains over the rates prevailing at the close of previous week.

Mirroring the uptrend in share prices, the CSE's 40-share index rallied to 1682.38 points from 1642.88 points in the same period. Virtually all the sections of the market participated in the current uptrend in prices with the result that the close showed wide spread gains in the list. The closing tone was distinctly bullish despite profit booking efforts at top levels and this is indicative of the fact that the market is likely to continue its upward movement.

The fact that after a long lapse this year's muharat session has set a new trend to the market has been warmly welcomed by operators as well as investors. As a matter of fact, a senior operator said that the performance of the special session reflected the pent up desire on the part of marketmen for a change as they had been hopelessly tired of the prolonged bearish trend in the country's bourses. And this change now seems to be steadily emerging in the market to the cheer of both speculators and investors, he said.

A former Vice President and a technical analyst, Mr. Vivek Mahajan, said that technically the market is expected to retain its current buoyant trend. This is because most of the adverse factors including the world-wide recession have been already discounted. Prices of several scrips especially in the technology sector have dipped sharply in the wake of the sustained bearish trend in the market. Therefore, attracted by the prevailing rates buyers, both investors and speculators, are expected to extend support to the market.

The upswing did not, however, cover the cement group which remained relatively sluggish for the major part of the week with profit booking tendency making some inroads into the gains of the recent past. But they too joined the rest of the list in the upward journey as fresh buying emanated in some counters especially ACC.

Several lower priced shares in the last also fared better reflecting revival of support after being neglected for quite some time. Despite any expert's view that the market liquidity is at a comparatively lower levels values have lately risen rather steeply on select counters.

Indications are there that individual bulk operators are increasing their holdings appreciably. The market sentiment has been bolstered not only by the impressive second quarter results of both new and old economy companies but also other developments including the introduction of stock futures in 31 shares.

Market analysts are of the view that this development will help augment business volume as well as liquidity. Such a turn is all the more welcome to the CSE which has been sadly handicapped by poor volumes right from the start of current fiscal because of the payment crisis that overtook this bourse.

Now the focus will turn on the likely attitude of foreign institutional investors in respect of their operations for the new year.

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Section  : Business
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