Software Scrips Suffer Minimum Damage

Software scrips managed to remain steady at the major bourses yesterday even as most heavyweight scrips tumbled on profit booking yesterday.

Market leader Infosys Technologies gained Rs 12.75 on the BSE to close at Rs 1222.75, Tata Infotech remain unchanged at Rs 1016 while Software Solutions hit a new 52-week high of Rs 110 during intra day trading. The scrip finally closed at Rs 105, registering a gain of Re 1 over the previous close.

Even if there is a rupee devaluation, software sector will not be affected as this sector relies on exports for its earnings, said a dealer at an institutional brokerage.

 

MNC scrips topped the casualty list at the major bourses yesterday as FIIs went on a selling spree.

Among the major losers in this group were Parke-Davis which fell by Rs 13.50 (BSE close: Rs 192.75), Pfizer by Rs 14.75 (Rs 311.50), Ponds by Rs 62.75 (Rs 1750.25), HLL by Rs 29(Rs 1376.75) and P&G by Rs 71.50(Rs 843.75).

Marketmen said that hedge funds with large exposure to MNC stocks were unloading their holdings due to fears of rupee devaluation. There was some short covering towards the close of trading session. Otherwise the sensex would have seen a slump of another 50-60 points, said a dealer at Anagram Securities.

Despite the bearish trend, the Burroughs Welcome and Indian Hotels scrips managed to post modest gains.

The Burroughs Welcome scrip gained Rs 14.25 on the BSE to close at Rs 390.25. The Indian Hotels scrip edged up by Rs 4.75 to end the day at Rs 603.75. Leading brokers said that there was FII interest at both the counters.

Other hotel scrips-EIH Limited, Asian Hotels and Orient Hotels- which had managed to hold firm over the past two trading sessions, also came under selling pressure yesterday.

The Gujarat Heavy Chemicals continued to witness hectic activity for the second day in succession on news of a take over by Nirma. Although the price moved in a narrow range (Rs 23.55 on the BSE and Rs 23.75 on the NSE), 43,000 shares changed hands on the BSE while the corresponding figure was 1.03 lakh on the NSE.