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Tuesday, Apr 06, 2004

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Patni Computers stock bounces back

Jayanta Mallick

Kolkata , April 5

THE Patni Computers stock today not only witnessed arrest in its price slide on the major bourses, but registered a decent bounce-back. The counter gained 4.59 per cent on the Bombay Stock Exchange with a traded quantity of 5.28 lakh shares, up from Friday's 1.51 lakh shares.

On the National Stock Exchange, the stock had a traded volume of 12.95 lakh (3.42 lakh) shares. On the NSE, there were 13 block deals through which 2.08 lakh shares changed hands. The delivery percentage (71.09 per cent of the total traded quantity on the NSE) suggested more of investment buying than mere trading.

According to Mr Ketan Thacker of Angram Stockbroking, the stock not only reversed the declining trend since listing, but overcame the concern over sharp appreciation of rupee against $, which had, of late, been keeping the investors at a distance from IT stocks.

Today, first and second rung tech stocks had attracted buying on the changing value perception. At today's closing price of Rs 222, the stock traded nearly14.9 times its earnings per share of Rs 14.9 (for the year ended on December 31, 2003). The non-promoters shareholding at the end of the calendar year was 39.21 per cent.

Tech analysts said, the rupee appreciation had not actually affected margins of tech companies as all the seasoned players had gone for long-term currency risk management early during the last fiscal. The lower level bargain hunting was spurred today as it dawned on the market that neither the outcry against the outsourcing in the US, nor depreciating $ could severely impact earnings and revenues of the Indian IT companies in the past quarters.

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