• Investment World
• eWorld
• Catalyst
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Sowmya Krishnan

THE stock markets appear to have started the New Year on a bullish note. The Sensex closed higher on four out of five days during the first week of 2002. The rally was primarily due to a smart rise in new-economy counters. The forthcoming earnings season has also fuelled interest in certain stocks especially frontline stocks such as Infosys and Dr. Reddy's.

Certain old-economy counters also witnessed heightened activity during the week. Cement stocks, in particular were in demand. The rally appears to be triggered by a rise in year-on-year cement shipments and also on hopes of a hike in cement prices. ACC topped the list of gainers by gaining over 17 per cent followed by others such as Grasim Industries, Larsen & Toubro and Gujarat Ambuja. Traded volumes in these counters also surged in tandem with the share price.

Satyam Computers: The stock jumped 22.57 per cent to Rs 273.70 and traded volumes crossed one crore shares. The market was rife with rumour that AOL Time Warner might pick up a stake in Sify, in which Satyam has over 50 per stake.

The general bullish undertone in software stocks could have further propped up the stock.

Other software stocks that witnessed heightened activity were Silverline Technologies, Aptech, Rolta, Pentamedia Graphics, Mastek, Himachal Futuristic, Kale Consultants, DSQ Sofware and HCL Infosystems.

NIIT: After an initial fall on fears of a bad earnings performance for December 2001 quarter, the stock picked up and ended 8 per cent higher, when most software stocks registered a double-digit growth. The stock appears to be fuelled by rumours that a venture capitalist was acquiring further stake in the company through open market purchases. The share last traded at Rs 247.45.

CMC: This stock rose almost 30 per cent or Rs 94 and settled at Rs 397. Sentiment has been upbeat in the stock ever since Tata Sons acquired a controlling stake in the company. CMC also received a couple of contracts from the Government and PSU. Low floating stock could be another reason for the massive rise in the share price.

Morepan Laboratories: This stock propped almost 19.6 per cent in the last week. Market talk that the company is planning to buy brands in the OTC segment and that it plans to acquire equity stake in Abbot laboratories could have pulled up prices. The stock settled at Rs 72.10.

Among the automobile stocks, TVS Motor, Bajaj Auto, Ashok Leyland and Hero Honda were upbeat. Hero Honda appreciated by over 16 per cent in expectation of its inclusion in the Sensex. The stock last traded at Rs 283.80.

Send this article to Friends by E-Mail

Stories in this Section
Forbes Gokak: Accept the higher priced options on last date

Copyright © 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line