Hotel, Software Stocks In Focus

Key hotel stocks EIH Ltd, Indian Hotels and Oriental Hotels posted significant gains on good volumes.

The EIH scrip gained Rs 18.75 on the Bombay Stock Exchange to end the day at Rs 404.25, Indian Hotels edged by Rs 33.25 to close at Rs 637 while Oriental Hotels gained Rs 10 to close at Rs 315.50. Software scrips too witnessed a flurry of activity with Digital Equipments and Software Solutions leading the rally. Marketmen said that the counters were witnessing renewed interest mainly in anticipation of excellent quarterly results.

The Digital Equipments scrip hit the upper end of the circuit filter on the BSE at Rs 177.75, a gain of Rs 16 over the previous close. On the NSE, trading in the scrip was suspended after there were no sellers at the counter at Rs 185.30.

 

The Software Solutions scrip too hit the upper end of the circuit filter at Rs 115.75 on the BSE, also a new 52-week high for the scrip. On the NSE, trading in the scrip was suspended after there were no sellers at the counter at Rs 109.85, yet another 52-week high.

Other software scrips too fared well, with Infosys touching a new 52-week high of Rs 1299 at the BSE and NSE during intra-day trading before closing at Rs 1293.75 and Rs 1294, up Rs 71 and Rs 51, at the BSE and NSE respectively.

Tata Infotech too hit a new 52-week high at major bourses during intra-day trading. The scrip closed at Rs 1115.25 on the BSE and Rs 1084.35 on the NSE.

Said an equity analyst at an institutional brokerage: There are still fears in the market about a possible rupee devaluation. Even if the devaluation does come, both the hotel and software sectors stand to gain. Both sectors will see an increase in earnings without a corresponding increase in operational cost.

On the rally in the software stocks, brokers feel punters are warehousing these stocks in anticipation of UTIs infotech fund.

Broking circles said domestic institutions were making purchases in key index stocks at lower levels while FIIs were buying selective stocks. FIIs were buyers at counters like Indian Hotels, East India Hotels, MTNL and HPCL, said a dealer at a FII broking house.