The Hindu Business Line : Netting gains

THE counter of Mangalam Cement was locked in the 10-per cent upper circuit on Thursday. The company's stock price closed at Rs 41.70 on the BSE, with volumes of 2.73 lakh shares. On the NSE, it closed at Rs 41.95, with volumes of 5.25 lakh shares.

Dealers said the stock is being accumulated by a section of the market on expectation that the company would be shortly out of the Board for Industrial and Financial Reconstruction's purview. The market believes that the company's net profit in the March quarter is indicative of a turnaround, and as such, out of the BIFR net.

Talk is also doing the rounds that some domestic funds have bought the company's shares in the last few days.

The stock price has more than doubled in the last month.

IT stocks all wired up

IT stocks, downgraded by most investors, were on the buy list of several institutional investors on Thursday despite uncertainty in the market on account of the Lok Sabha Elections.

Dealers said the main factor for the interest in the IT stocks is the depreciating rupee against the US dollar. Earlier, several institutional investors dumped these stocks due to the appreciating rupee. The uncertainty over the political situation has resulted in depreciation of the Indian currency.

Interest in IT stocks was seen from the BSE IT index, which gained 3.18 per cent on Thursday, the highest among all the sectoral indices. Some of the stocks that were bought by institutional investors included Wipro (up 4.93 per cent at Rs 1,603.70 on the BSE), Satyam Computer (up 5.17 per cent at Rs 312.70), Patni Computers (up 7.90 per cent at Rs 251.40), Infosys Technologies (up 2.14 per cent at Rs 5,199.35) and HCL Technologies (up 6.37 per cent at Rs 297.45).

Short covering buoys market

THE stock market bounced back sharply from its low levels on Thursday.

Dealers said the bounce back was due to short covering by several market players. Several players have gone short on Nifty Futures after the outcome of exit polls and this resulted in sharp fall in stock indices. As the results started coming out, these players started buying the index resulting in a sharp rebound. If the market buzz is to be believed, the major part of the short covering was from hedge funds.

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