Tech stocks turn hot picks

Sowmya Krishnan

Technology stocks: Most of the technology stocks gained momentum during the week and shot up. The rise was more prominent in second rung tech companies. For instance, Trigyn technologies shot up almost 50 per cent to Rs 84.50 and Cybertech by around 132 per cent Rs 31. Volumes also doubled to 1.25 lakh shares. Other companies that logged sharp gains were shonkh Technologies, Pentamedia Graphics, Mastek, Computech, Ace software and Pentagon Global. The rise was sharper in B1 and B2 stocks.

The rise in frontline software stocks such as Infosys Technologies, Satyam Computers and Wipro was limited. Trading volumes in these stocks also dropped. Infosys recorded a 9.39 per cent gain and closed at Rs 3557.30. Traded volumes tumbled to 2.7 lakh shares from 6.4 lakh shares last week.

Ahmedabad Electric Company: Over the week, the stock rose sharply by around 50 per cent to Rs 87 from Rs 57 last week. Trading volumes have also risen sharply to around 19 thousand shares. Rumors of a takeover appear to have fuelled trading interest in the stock.

Zee Telefilms: The stock appreciated by around 10 per cent to Rs 125.75 amidst rising volumes. Reports of a sale of stake in the company could have fuelled interest in the stock.

Grasim Industries and Larsen & Toubro: The recent decision of Grasim Industries to buy out Reliance's stake in L & T was not well received by the market. Both Grasim and L&T's stock lost around 2.87 per cent and 1.15 per cent respectively. Volumes also dipped substantially. Concerns regarding the price paid to acquire the stake and the impact on cash flows might have dampened sentiment in Grasim's stock. However, the decision is believed to benefit both the companies in the long run.

Bharat Electronics, IPCL: Trading interest was also witnessed in public sector stocks such as Bharat Electronics, IPCL, Bharat Petroleum, BHEL and Bharat Earth Movers. Bharat Electronics shot up by around 17 per cent to Rs 74 amidst a steep rise in trading volumes.

Blue star: The share price flared to Rs 60.25, a steep rise of around 43 per cent from its previous week's close. The company has announced a buyback of shares at a maximum price of Rs 75 per share. This could have spurred interest in the stock.

Dr Reddy's Laboratories: Dr Reddy's lost around 10 per cent under bullish market conditions. Its failure to secure a six-month monopoly for the generic version of Prisolec in the US could have affected valuations of the stock.

Philips India: Philips India witnessed a 36 per cent rise in its share price following the open offer made by Royal Electronics to the minority shareholders with an intention to delist the stock. The stock closed at Rs 101.60, very close to the offer price of Rs 105 per share.