Sensex spurts 155 points; IT, auto steal show

Telco rose 7.98 per cent to Rs 165.85 on hopes that its passenger car division would soon be spun off in collaboration with a foreign firm. Bajaj rose by 7.99 per cent to Rs 338 while Ashok Leyland rose 7.95 per cent to Rs 95.70 on buying support.

Pharma multinationals reacted on profit-taking as investors shifted attention to domestic pharma stocks due to poor results announced by the multinationals. The results announced lately by these firms – especially Glaxo and Merck – were below market expectations.

Technology shares gained strongly with Infosys Technologies rising 4.42 per cent to Rs 10,275 after touching Rs 10,600, within a striking distance of its all-time high of Rs 10,759.95. Wipro and Pentasoft Technologies both hit the upper end of the eight per cent circuit filter. Wipro has hit the eight per cent limit continuously in the last eight trading sessions. Satyam Computer Services ended over six per cent higher at Rs 4,969.20.

DSQ Software and Silverline Industries were other IT counters which moved up smartly. Zee Telefilms also made smart gains. The broad market was also stronger with advancers beating decliners 1,226 to 685. Last Friday, BSE Sensex had ended 1.95 per cent lower from the previous day’s close, continuing its slide from last Monday’s high of 6,150.65.

Put Wipro on `spot’

Mumbai: With manipulation in Wipro stock continuing, experts feel that the SEBI should shift the scrip to the `spot’ basis. Wipro (with a face value of Rs 2) jumped by yet another 8 per cent, or Rs 712.90, to Rs 9,624.50 on Monday. At this level, the scrip is worth Rs 48,122 when calculated on the basis of Rs 10 face value.

Wipro, which is now in the A group where carry-forward is allowed, has zoomed by over 250 per cent from around Rs 2,900 in the last three weeks. “There seems to be excessive speculation in the scrip. The exchanges should shift the scrip to the spot delivery system to curb excessive speculation in Wipro. Surprisingly, SEBI and exchanges have failed to curb the rigging in Wipro. SEBI should investigate the rigging in Wipro. Investors will burn their fingers if the regulator and exchanges are not careful.” In the spot system, shares will be sold and bought only on delivery basis.

HLL to split stocks
MUMBAI: The board of Indian consumer goods firm Hindustan Lever Ltd will meet on February 23 to consider a proposal to split its share (face value of Rs 10) into 10 shares of one rupee each.

Following the stock split news, HLL share hit the upper circuit breaker as the scrip rose by 8 per cent, or Rs 199.15, to Rs 2,689.15 on Monday. “In fact, the share had hit the 8 per cent upper limit on Friday,” said a broker, adding, “share split will increase liquidity.”

Earlier, Infosys had split its Rs 10 share into two shares of Rs 5 each. Wipro sub-divided its Rs 10 share into five shares of Rs two each. Zee Telefilms split its Rs 10 share into ten shares of Re one each. This follows the SEBI’s decision last year to remove the concept of Rs 10 face value.