The Hindu Business Line : Fund buying lifts CMC

THE stock price of software company, CMC Ltd, has been in the limelight over the last couple of trading sessions on fund buying. The rise in the stock price has also been attributed to some big orders the company is expected to receive shortly.

In today's trading, CMC stock gained 7.85 per cent at Rs 513.60 on the BSE, with volume of 1.06 lakh shares. On the NSE, the stock closed at Rs 509.15, up 7.39 per cent with volume of 3.09 lakh shares. Out of the total shares traded, 22.95 per cent were presented for delivery on the BSE. On the NSE, the delivery to traded quantity ratio was 12.20 per cent.

Dealers said the rise in the stock price was on account of a new private sector mutual fund buying the shares of CMC over the last couple of days. In addition, the stock has been rising on the company's initiative to synergise its operations with Tata Consultancy Services (TCS). The Tatas have 51 per cent stake in the company and the Government 26 per cent.

The talk in the market is that the synergy will help the company bag some good orders.

After the dismal second quarter results, CMC stock price had taken a beating. But analysts expect good performance in the next two-quarter (i.e., December 2002 and March 2003 quarter).

For the second quarter ended September 2002, CMC reported a net profit of Rs 5.2 crore, compared to Rs 10.45 crore for the quarter ended September 30, 2001.

The total income fell from Rs 139.41 crore in September 2001 to Rs 132 crore for the quarter ended September 2002.

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