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Journalism of Courage
MUMBAI, JUNE 19: The speculative build-up in ICE (infotech, communication and entertainment) stocks continued at a frenetic pace with six highly speculative ICE stocks clocking a whopping turnover of Rs 7,348 crore — out of the total turnover of Rs 11,342 crore — on both the stock exchanges in Mumbai. With ICE stocks moving up further on sustained buying by funds and local investors, the benchmark Bombay Stock Exchange Sensex gained another 72 points.
Over 60 per cent of the turnover on both the BSE and the National Stock Exchange was accounted by HFCL, Global Telesystems, Satyam Computers, Silverline, Zee Telefilms and Infosys tech. These stocks generated a turnover of Rs 3,006 crore (out of the total turnover of Rs 4,922 crore) on the BSE. HFCL topped the list of turnover on the BSE by registering a business volume worth Rs 722.72 crore, followed by Satyam Computer Rs 655.04 crore, Infosys Tech Rs 477.69 crore, Global Tele Rs 467.10 crore, Silverline Rs 362.28 crore and Zee Telefilm Rs 321.24 crore. These six stocks accounted for a lion’s share of the total volume.
On the NSE, these six stocks clocked a total volume of Rs 4,342 crore out of total of Rs 6,420 crore. HFCL clocked Rs 1191.96 crore, Satyam Rs 849.40 crore, Global Tele Rs 635.21 crore, Zee Tele Rs 604.97 crore, Silverline Rs 536.17 crore and Infosys Rs 524.74 crore on the NSE. “The huge turnover in select ICE stocks indicates that huge speculation is going on such scrips. Obviously, these are not investment deals,” said a broker.
According to marketmen, the rally which started in new economy stocks on both the leading bourses spread to old economy stocks with cyclicals and pharma stocks joining ICE stocks. Reflecting the firm trend, Sensex opened at 4800.25 points, touched the day’s high of 4884.89 points, fell sharply to touch the day’s low of 4788.94 points before closing at 4837.24 points, showing a net gain of 72.57 points (1.52 per cent) from the previous close of 4764.67 points. The S&P CNX Nifty index at the National Stock Exchange (NSE) too closed higher by 19.30 points at 1496.60 points as against Friday’s close of 1477.30 points.
ICE heavy-weights Pentamedia, HCL Infosys, Crest Communications and Sri Adhikari hit the upward circuits by registering maximum 12 per cent gains while others like Wipro, Mastek, Ramco Systems, Infosys Tech, DSQ Software, PSI Data and Aptech posted handsome gains. In the non-ICE stocks, Gujarat Gas posted 12 per cent gain over its previous close, dealers said.
Leading stock brokers said foreign institutional investors (FIIs) extended their support to new economy stocks and also picked up select old economy stocks. “The market has been witnessing a firm trend in the last one week. With today’s rally and if Nasdaq goes up further, it will certainly boost the market sentiment here on Tuesday,” said a broker.
Meanwhile, select shares suffered a moderate setback due to selling pressure from speculators on the first day of current week at the BSE. Prominents like Cadbury, Tata Tea, Fujitsu ICIM, Novartis, Germen Remedies, Nicholas Piramal and Otis posted considerable declines during the course of trading, dealers said.
Market players feel there is enough strength in the market to push the Sensex beyond the 5000-mark in the medium term. Although, a small correction is expected on Wednesday, they feel it will actually strengthen the market. “The underlying strength is definitely bullish, but we expect a small correction to come around the 4950 level or even earlier. But that will actually give the rally more strength and take it to higher levels thereafter,” said a dealer.
According to dealers, a number of technology stocks have given a good break-out. Also the Sensex is showing strong trend in the medium-term. Additionally, Sebi’s FII investment figures for Friday shows a positive inflow to the tune of Rs 141 crore. “Going by the recent spate of FII selling, this is a good turnaround by the foreign investors,” said an institutional dealer. Additionally Sebi’s mutual fund transaction figures show a positive trend for the last three trading sessions, after returning negative figures since the beginning of the month.
