The Hindu Business Line : Small is beautiful

AFTER the run-up in larger power distribution companies, it's the turn of smaller power distribution companies. Among this group, the stocks that were bought by investors on Tuesday included CESC (up 9.97 per cent at Rs 105.30), Ahmedabad Electricity (up 11.11 per cent at Rs 86), Gujarat Industrial Power (up 5.52 per cent at Rs 46.80) and Surat Electricity (up 9.99 per cent at Rs 209.65).

Dealers said that the buying in these stocks was from investors who were bullish on power distribution companies. Moreover, the market talk is that some investors are now shifting from bigger companies such as Tata Power and Reliance Energy to these stocks.

Bigger companies stocks had run-up much faster than the smaller ones, dealers said. This was also the reason for stock price of Tata Power and Reliance Energy to fall on Tuesday.

Concern over rising rupee

THE counters of big IT companies are showing some weakness. If the market buzz is to be believed market players are somewhat concerned over the outlook for major IT companies in the wake of appreciating rupee in the last few days.

Dealers said there is possibility of profits of these companies coming under pressure in the next few quarters and due to this, a large number of players are offloading their holding in IT companies. This was seen on Tuesday also with most of the frontline IT stocks closing lower.

The list included Satyam Computers, Infosys Technologies, Wipro, and Hughes Software. The talk is that several investors have sold their holdings and waiting for IT companies to give their outlook after the March results.

Summer brings respite

WITH summer round the corner, the counter of air-condition maker Voltas is turning attractive in the eyes of investors. Dealers said the sales increase in the summer season and this is expected to benefit the company most.

The market talk is that the company is launching various low price models that is below 1-tonne capacity in the price range of Rs 10,000.

Market players expect this category to bring new customers and also more profits. On these expectations, several market players are buying the shares of the company.

On Tuesday, the stock gained 17.64 per cent at Rs 113.05 on the BSE with volume of 69,304 shares and on the NSE it closed at Rs 112.75. up 17.02 per cent, with volume of 2.61 lakh shares.

Virendra Verma

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