The Hindu Business Line : Investor favourite

AFTER putting up an excellent third quarter show, Nestle has become an investor favourite on the exchanges. At least two top domestic broking firms as well as one foreign broker are said to be recommending the stock to their clients.

According to a market source, Nestle shares are now being regarded as `safe-haven' buy. Volumes in the relatively thinly traded stock have increased over the past few days.

Even though the stock closed 1.3 per cent lower at Rs 596 per share today, trading volume was strong with more than a lakh shares changing hands on the BSE.

Charged by auto boom

THE stock of Exide Industries is attracting buyers, reportedly institutional investors, on the hope that soaring vehicle sales would also help the automobile battery segment.

According to a source, replacement sales have been strong and are expected to boost the topline in the current quarter. Also, Exide Corporation and Rover AG are said to be in talks to source batteries from the company.

The export prospects as well as expectation of better domestic sales are bringing investors to the counter.

The Exide stock closed 2.2 per cent higher at Rs 118.80 on the BSE. While 7,040 shares were traded on that exchange, 12,337 shares were traded on the NSE.

Tech surge

EVEN though several pending legislations in the US continue to worry investors in Indian technology companies with large offshore businesses, many of them believe that strong revenue growth and better quality of clients would more than allay the fears.

About 70 anti-outsourcing bills have been introduced in US State Legislatures and Congress.

However, according to the market grapevine, foreign clients continue to make a beeline to the Indian campuses of leaders such as Infosys and Wipro.

The buzz is that business has never been so good in the history of Indian IT services sector. Top companies are expected to raise profit guidance when they announce results of the fourth quarter.

The expectation has fuelled buying in frontline technology stocks with the BSETECk index rising nearly a percentage point on a rather volatile day.

Dinesh Narayanan

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