The Hindu Business Line : Sintex gains on growth prospects

The stock price of the company gained 8.84 per cent at Rs 543.10 on the BSE with volume of 86,427 shares and on the NSE it closed at 537.40, up 7.53 per cent, with volume of 51,300 shares.

Dealers said the stock is attracting interest from select market players on the buzz that the current fiscal of the company would be very good. Moreover, there is talk that following the demerger of the company's textile business there would be interest from select private equity investors for the textile business.

Warburg Pincus, a private equity investor, has already taken stake in Sintex.

IT stocks slip on `slowdown'

IT stocks continued to extend losses in the wake of disappointed performance from Infosys and TCS in their March results. The weakness was also seen on Tuesday when the BSE IT Index was down by 0.61 per cent compared to marginal gain in the Sensex.

In fact, the dip in BSE IT Index was the steepest among all the indices. Dealers said the weakness in IT stocks is on concern over the slowdown in the orders for most of the companies from their US clients. This is mainly due to the Sarbanes-Oxley Act compliance by most of the US companies.

The market talk is that several of the US companies' top executives are busy in compliance wrok and due to this there could be a possibility of slowdown in orders from the US. On these concerns, there is selling in major IT counters such as TCS, Infosys, Wipro and Satyam Computers. All these stocks closed lower on Monday too.

Falls on capital reduction

AFTER the sharp fall in Essar Steel stock price, it is the turn of Ispat Industries stock to see the downfall. The stock is already down from Rs 30 to around Rs 20 levels.

Dealers said the continuous fall in the stock price is on expectation of reduction in the equity capital, similar to Essar Steel, soon. The reduction is part of the corporate debt restructuring of the company's debt. The market buzz is that the several investors aware of this development are selling the shares in the last one month. The company is awaiting High Court approval for the reduction in the equity capital. However, the exact number of shares the shareholders of the company would get is not known.

On Tuesday, the stock closed at Rs 20.75, down 2.8 per cent, with volume of 53.24 lakh shares on the BSE; on the NSE it closed at Rs 20.70, down 3.04 per cent, with volume of 1.05 crore shares.

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