The Hindu Business Line : Polaris falls on heavy selling

DESPITE the depreciation of rupee on Monday, the counter of software major Polaris Software came under heavy selling pressure. If the market buzz is to be believed, a large institutional investor, seller in the counter at Rs 200-levels, has again started selling.

Dealers say the selling is due to the uncertainty prevailing around the company. This includes the possibility of stake sale by one of its promoters. There is also talk that one of the company's major clients may not give fresh orders. All these factors are leading this investor to offload the shares.

On Monday, the stock was down 9.45 per cent at Rs 160.55 on the BSE with a volume of 13.55 lakh shares and on the NSE it closed at Rs 161, down 9.14 per cent, with a volume of 31.54 lakh shares.

Birla Corp gains on good performance

ON a day when there was across-the-board selling including cement stocks, the counter of cement company Birla Corporation was an exception.

Dealers said the buying in the stock was on the back of good financial performance of the company in March quarter. In addition, the restructuring undertaken is also likely to benefit the company in the current fiscal. As part of the restructuring it has decided to close one of its units, Birla Synthetics, at Birlpur in West Bengal. This unit has been under suspension since November 1998.

Moreover, the good outlook in the cement sector is also attracting lot of investor's interest in the counter. A leading domestic broking firm with good retail focus has been recommending the stock to its clients.

On Monday, the stock gained 4.53 per cent at Rs 100.45 on the BSE with a volume of 8.36 lakh shares and on the NSE it closed at Rs 100.30, up 4.25 per cent, with a volume of 11.27 lakh shares.

FIIs versus corporate house

THERE was huge volatility in the market on Monday. Dealers said this was due to selling by several FIIs and active buying by a leading corporate house.

The talk is that several FIIs were sellers in the entire index and index stocks on Monday while this corporate house was picking them at lower levels. The FIIs are selling due to political uncertainty. T he buzz is that most of the selling is over and they are waiting for the election to be over to make fresh purchases.

Virendra Verma

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