Software Scrips In Turbo Drive

Software scrips once again led the rally at major bourses yesterday with key scrips hitting the upper end of the circuit filter on frenzied buying interest. These scrips included Pentafour Software, Satyam Computer, Digital Equipment and NIIT.

Marketmen said there was an enquiry for about two lakh shares of Pentafour Software by a foreign institutional investor (FII). However, with trading in the scrip being frozen owing to requirement of sellers, the order could not be executed.

Market players said the buying interest in software scrips was more of speculative rather than genuine. "FII purchases at these counters have been selective and mostly at corrections. It seems unlikely that FIIs would purchase software stocks at these high prices," said a Bombay Stock Exchange (BSE) broker.

Also, sections of the market are apprehensive about the sharp rise in software prices, which they feel could lead to a sharp fall when the market corrects itself.

The Himachal Futuristic continued to witness high buying interest on rumours of an open offer. Trading in the scrip was frozen at Rs 31.40 on the BSE after there were no sellers at the counter. Yesterday 11.11 lakh shares changed hands on the BSE. Trading interest was witnessed in late evening kerb deals where the scrip was being quoted at Rs 35 levels.

VSNL witnessed a block deal of 1.81 lakh shares on the National Stock Exchange (NSE) yesterday The deal was executed in six tranches at an average rate of Rs 850 per share. The scrip witnessed a low of Rs 766 for the day and a high of Rs 902. ICICI clocked good volumes on the depository segment with 1.91 lakh shares changing hands.

The Usha India scrip witnessed a block deal of nine lakh shares in the depository segment at a rate of Rs six per share. This was at a discount of Rs two to the closing price of Rs eight on the BSE yesterday. NIIT, too, was traded in the demat form with 52 shares changing hands at an average rate of Rs 1,500 yesterday.

Good buying interest was witnessed at the Tata Hydro scrip for the second successive trading session since Friday. The scrip once again hit a new 52-week high of Rs 105 on the BSE and Rs 102 on the NSE during he intra-day trading .

Market players attributed the rise in prices to an institutional order being executed in tranches.