Financial Daily from THE HINDU group of publications
Tuesday, Apr 12, 2005
Financial Daily from THE HINDU group of publications Tuesday, Apr 12, 2005 |
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Markets
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Stock Markets Columns - Ear to the ground Infosys Tech: Pre-results jitters
THE counter of software major Infosys Technologies has been on a downward move in the last one week. Dealers said they were witnessing continuous selling in the counter. The major factor for the fall in the stock price ahead of the financial results is concern over the fringe benefit tax introduced in the 2005-06 Budget. The talk is that based on the current system, the profitability of the company would be affected due to the new tax. Further, there are talks that this time the company may not give guidance for the next quarter and for the full year in the absence of any clarity from the Government on fringe benefits. These factors are causing concern to the market players who resorted to heavy selling. On Monday, the stock was down by 2.23 per cent at Rs 2079.20 on the BSE with volumes of 2.01 lakh shares; on the NSE, it closed at Rs 2077.80, down 2.35 per cent, with volumes of 7.47 lakh shares.
Down on `downgrade' talk THE stock market fell for the third day in a row and this began to worry market players. Monday's fall furthered their worries as the decline in stock values was following a report from a leading Dutch Bank asking its clients to exit from various emerging markets, including India. Other Asian markets, where the bank had declared `underweight' include China, Korea and Indonesia. The view of the bank is that equity market is headed for bearish trend. The talk is that following this report FIIs inflows will slowdown into India and this could lead to further fall in stock prices.
Linc Pens up on Wal-Mart link A small-cap stock that is slowly attracting market interest is Linc Pens and Plastic. The company is mainly into manufacturing of pens. But the big story, which some market players are seeing in the stock, is its association with world's largest retail player Wal-Mart. The talk is that the company is supplying around 3 million pens to the retail major. The view of these players is that the company is likely to show good growth in the next few quarters and the company association with Wal-Mart could lead to re-rating of the stock. On Monday, the stock of the company gained 1.89 per cent at Rs 43.20 on the BSE with volumes of 18,670 shares.
Virendra Verma
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