Date:02/11/2004 URL: http://www.thehindubusinessline.com/2004/11/02/stories/2004110202621500.htm

Back Sustained buying seen in Patni Computers

SUSTAINED investment-based buying has been spurring the stock price of Patni Computer Systems Ltd on the bourses.

As per the market grapevine, the Government of Singapore has been actively supporting the counter in the recent past.

Analysts maintain that it is one of the stable and robust mid-tier players. The company's net profit growth is said to have outperformed the industry average. With the company's margins said to be lower than the sector, it is said to be attractively valued.

In the near term, the closing out of the Cymbal Corporation deal could prove to be a trigger, said analysts.

The stock ended at Rs 358.80, up 4.91 per cent, with around 2.27 lakh shares traded on the BSE.

China's cool move warms them

WHILE the Chinese Central banks' decision to hike interest rates may have dampened sentiment vis-à-vis metal stocks, it has, in contrast, infused some optimism in PSU banking stocks such as SBI, Bank of Baroda.

The move is being viewed as a precursor to `cool down' commodity prices in China.

The country has been largely held responsible for the sharp rise in metal prices and as the largest contributor to the rising oil prices.

Analysts speculate that the China factor could dampen global metal and oil prices, which domestically may serve as a check on inflation. Hence, this raises the possibility of a benign interest rate scenario, say analysts.

The stock of SBI ended the day at Rs 468.85, up 4.81 per cent, with around 13.85 lakh shares traded on the BSE.

The stock of Bank of Baroda ended at Rs 155.85, up 1.33 per cent, with around 1.15 lakh shares traded on the BSE.

Betting on NCL prospects

EVEN as NCL Industries reported better-than-expected second quarterly numbers, talk of the company looking at a net profit of Rs 11 crore to Rs 12 crore for the full year has been keeping alive market interest in this counter.

Analysts speculate that the company, which is in the process of swapping a Rs 16-crore loan from 16 per cent to 11 per cent, is likely to save around Rs 2 crore in interest costs in FY06.

Being a mini cement plant, the company is also expected to benefit from an excise duty rebate in Q4.

The stock of NCL Industries moved up by 3.09 per cent to Rs 18.35 with around 1.38 lakh shares traded.

Deeptha Rajkumar