The Hindu Business Line : Fund buying props up volumes

THE counter of recently listed software company, Scandent Solutions, witnessed large volumes on the BSE and the NSE. There was also rise in its stock price.

The stock closed at Rs 216.55, up 10.77 per cent, on the BSE with a volume of 27.63 lakh shares; on the NSE, it closed at Rs 214.50, up 8.88 per cent, with a volume of 21.76 lakh shares.

Dealers said that a leading institutional investor, which also has a mutual fund in India, bought more than five per cent stake in the company on Thursday.

The talk is that there has been sudden interest of institutional investors in the stock and some more fund buying in the company is likely to be seen soon.

On buy list of investors

ANOTHER IT company that is attracting investor interest is Aftek Infosys. The talk is that this company is likely to turn out good results in the next few quarters.

Select mutual funds are buying the stock. Another factor for the interest in the stock is that it is undervalued compared to other mid-cap stocks.

The view among the funds is that this stock should get a higher price-earnings multiple compared to other mid-cap stocks from the manufacturing sector.

On Thursday, the stock gained 11.3 per cent to close at Rs 84.70 on the BSE with a volume of 20.58 lakh shares; on the NSE, it closed at Rs 84.70, up 11.37 per cent, with a volume of 33.56 lakh shares.

Touches new high

HDFC on Thursday touched a new high on expectation of steady growth. The talk is that several new FIIs, which have recently come to India, are buying the shares of the company.

Another factor for the interest is that the company is making investment in several listed companies and the market feels that at later stage they would be bought over by HDFC.

The recent acquisition of over nine per cent stake in Indraprastha Medicare is one such example. On Thursday, the stock price of HDFC gained 1.07 per cent to close at Rs 836.30 on the BSE with a volume of 50,844 shares; on the NSE, it closed at Rs 839.90, up 1.49 per cent, with a volume of 2.15 lakh shares.

Virendra Verma

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