Prudent in overdrive across sectors

STREET SIGNS

The sight of peak 8000 was enough for many to press the sell button, which explains the cool-off during the latter part of the session. However, the Sensex did manage to close at a new life-time high.

Weakness in frontline stocks such Infosys, TCS, Maruti, Bharti, Reliance etc were said to be the reason behind the climb down. But with investors running out of oxygen at such rarefied heights, that was only to be expected.

Tea time
Tea plantation company McLeod Roussel seems to have caught the eye of desi funds. The buyers at the counter included Prudent Fund and Princely Fund. While the former bought more than four lakh shares, the latter took home a lakh of shares. Both these funds bought the shares at Rs 65 levels.

According to those in the know, the upswing in fortunes for tea companies is what makes McLeod Roussel such a mouth watering option for these investors. Analysts say there is an improvement in price realisations in the industry, thanks to the demand-supply mismatch.

In 2004, tea production is estimated to have dropped more than 4 per cent. McLeod's growth plans -to acquire estates in India and Kenya - also seems to have attracted the buyers.

Singing (NI)IT tune
Prudent Fund is also enamoured of the growth potential of IT education service provider NIIT. The fund bought more than a lakh shares at the counter at Rs 295 levels. Goes without saying that Prudent's sister concern, I see I see Securities, is one of those which is bullish on the stock.

According to the securities firm, NIIT is all set to carve a new growth trajectory for itself. Given the good order book position, market leadership, sound management and strong brand equity of NIIT, I see I see is certain that the stock is set to climb higher.

Power play
Prudent Fund was also a buyer at the RPG Transmission counter. The fund bought three lakh shares at Rs 135 levels. The company executes contracts for setting up overhead transmission lines and also supplies transmission towers to state electricity boards (SEBs) and the PowerGrid Corporation of India.

Recently, the company had bagged close to Rs 300 crore of high-voltage transmission project contracts from PowerGrid and the SEBs of UP, Rajasthan and Chhattisgarh. No wonder Prudent is interested.

In other news...
HS Busy was a seller at the SSI Ltd counter at Rs 70 levels, while Metro was a seller at the GTL counter at Rs 129 levels. Kodak Fund was a buyer at Hindustan Dorr-Oliver counter at Rs 299 levels.