ICE stocks take Sensex up by 125 pts

Speculators, who generally kept away from the market during the last settlement due to long weekend holidays, jumped on to the bandwagon when FIIs stepped up their purchases in infotech stocks in line with the firm trend in the international market, particularly New York, where the focus has once again been shifted to IT sector in view of its high growth rate.

The news that FIIs, who had made huge net sales of Rs 1418 crore in July and Rs 959 crore in June, were net buyers amounting to the tune of Rs 1259 crore during August boosted the morale of the broking fraternity. Dealers said the market is likely to witness another rally after the Sensex crosses another resistance at the 4662 level.

Reliance also attracted brisk activity and recorded sharp gains on reports of a steep hike in polymers prices. Financial institutions also made selective purchases in the infotech sector picking up shares of Zee Telefilms, Satyam Computer, SSI Ltd, Digital Equip and Global Tele. Of the 140 specified shares, 98 registered sharp to moderate gains while 42 showed losses.

Satyam Computer shot up by 51.75 to 623.65. Infosys Tech was up by 215.70 at 8588.85, Zee Telefilm by 31.55 at 549.35, Global Tele by 142.30 at 1254.60, Himachal Futuristic by 80.30 at 1498.55, BSES by 5.65 at 223.45, Dr Reddy by 29.10 at 1354.55, HLL by 7.25 at 245.80, L&T by 6.95 at 210.70, NIIT by 28.75 at 1914.05, RIL by 19.65 at 356.70, SBI by 5.20 at 202.95 and TISCO by 2.55 at 111.15.

However, Grasim dipped by 3.25 to 269.75, ITC by 5.80 to 772.05, BHEL by 1.35 to 131.35, MTNL by 3.15 to 149.30 and TELCO by 1.80 to 97.95.

They said the government’s decision to corporatise Department of Telecommunications (DOT) too influenced trading sentiments which fuelled fresh spell of buying in front-line telecom sector stocks such as Global Telesystems and Himachal Futuristic. The sustained rise in ADR (American Depository Receipts) values of Indian infotech majors such as Infosys Technologies, Satyam Info and Silverline Technologies on the technology-high Nasdaq Stock Exchange was another factor behind current bull-run IT stocks, they added.

“Today’s rally was widespread with traditional blue-chips also recording sizeable gains,” a BSE broker said, adding, "The focus again shifted to IT sector stocks. Nasdaq also seems to have stabilised.”

Brokers are also expecting more action from US investors and FIIs ahead ofthe Prime Minister’s US visit. Looking ahead at the business prospects that the high-level visit can unleash, CII has said India can target at least $ 15 billion of FDI in next five years and $ 25 billion in next ten years in sectors like financial services, information technology and telecommunications. “Financial services, energy, environment, small sector, biotechnology, information technology, drugs and pharmaceuticals, telecommunications, infrastructure and research and development have been identified as thrust areas where FDI could be attracted,” the chamber had said. The market also expects the government to speed up liberalisation and disinvestment in a bid to woo the US business community.