Date:12/08/2004 URL: http://www.thehindubusinessline.com/2004/08/12/stories/2004081201421500.htm

Back Patni Computers gains on funds buying

INSTITUTIONAL investors are buying Patni Computers shares over the last few days. Dealers said the interest in the counter is on the back of good financial performance by the company in June quarter.

Talk is that several institutional investors, especially new FIIs, are very impressed with the company's performance and slowly adding the stock to their portfolio. Patni shares, which had fallen below the offer price of Rs 230 just after listing has bounced back and there has been regular buy orders in the counter.

On Wednesday, the stock gained 3.68 per cent at Rs 322.35 on the BSE with volumes of 4.33 lakh shares; on the NSE, it closed at Rs 319, up 2.72 per cent with volumes of 9.44 lakh shares.

Stake sale buzz drives it up

THE counter of two-wheeler automobile company LML gained sharply on Wednesday. The stock closed at Rs 38.20, up 18.63 per cent, on the BSE and at Rs 38.30, up 18.76 per cent, on the NSE. Along with the rise in price, there was spurt in trading volumes. From average volumes of below one lakh shares each on the BSE and the NSE, the counter clocked traded volumes of 19.90 lakh shares on the BSE and 33.78 lakh shares on the NSE.

Dealers said the sudden interest in the stock is due to possibility of placement of company's shares to a foreign automobile company. Talk is that a South Korean company might take a stake. However, market did not have any clue about the quantum of shares or the price at which the placement will take place.

Indices fall on TCS offer?

Most of the market players attributed the rising oil prices, inflation and hike in interest rates in the US for the fall in key indices on Wednesday.

However, some players had a totally different version for the fall. Dealers said several domestic institutional investors were the main sellers. The selling by them was to pay for the shares that would be allotted to them in TCS IPO.

Talk is that the QIBs have to make payment for TCS shares by Monday and for this, shares had to be sold on Wednesday so that the pay-out of funds takes place on Friday.

Dealers said domestic institutional investors would be allotted TCS shares worth around Rs 250-300 crore.

Virendra Verma