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NIIT gains on revamp move

Krishnan Thiagarajan

BL Research Bureau

THE absence of FII interest in technology stocks led to the BL Technology Index shedding 0.24 per cent during the previous week to close at 3352.94 points. The BL Technology Index managed to marginally inch ahead of the broadbased BL-250 Composite Index which declined by 0.34 per cent during the week. The divergent trend was evident in the industrial indices. While the Computer Hardware and Office Equipment Index appreciated by 3.5 per cent, the Computer Software Index dipped by 2.53 per cent, significa ntly higher than the dip in the broadbased BL-250 Index and the BL Technology Index.

NIIT was among the biggest gainers during the week with its stock price appreciating by 6.13 per cent to close at Rs 1,695.95. The movement has to seen in the light of NIIT recasting its organisational structure with the aim of achieving a turnover of Rs 10,000 crore within six years. As a part of this recast, termed FastForward, four independent business units have been created for the core businesses besides a corporate centre to pursue NIIT's long-term strategies. Among the other major gainers during the week were Digital Equipment (India) which appreciated by 5.66 per cent and Wipro which was up by 4 per cent. After a prolonged phase of bearishness, the Mastek stock appreciated by 2.59 per cent to close for the week at Rs 575.65.

Among the major losers during the week was Infotech Enterprises. The stock declined by 13.54 per cent to close for the week at Rs 224.50. It may be recalled that the stock had appreciated last week on the possibility of the firming up of its plans to acq uire a German software company and/or the progress of the merger of Cartographic Sciences with it. But the possibility appears to have played itself out and the stock has slumped back to earlier levels. The other major losers were Trign Technologies -- 1 3.10 per cent, Fujitsu ICIM -- 9.06 per cent, Satyam Computers -- 6.78 per cent and SSI -- 5.08 per cent.