Fast track
Mascon Global: On the uptick
Stocks from the information technology sector have taken a hammering in the last few trading sessions. Most of the industrry majors such as Infosys, Satyam Computers and Wipro have lost value. In the midst of this carnage, one stock which has been quietl
y moving up is Mascon Global.
Impact
Reliance Industries: Buyback undertone
THE proposal to consider a buyback of shares may ensure firm trends in the stock price of Reliance Industries in the near term. The board of directors will meet on April 12 to consider buyback of shares. Significantly, the stock price has been on an uptr
end in the last 15 trading sessions bucking the overall trend in the broad market. The stock has risen close to 60 per cent during this period. Unless the buyback price carries a sizeable premium to the market price, it may not find many takers. In antic
ipation of this factor playing a role in the pricing of the buyback offer (if approved), the stock may show a firm undertone in the run-up to the board meeting. Currently, the share trades at Rs. 325. _BL Research Bureau
Siemens India: Bagging a big order
THE sizeable order bagged by Siemens may go towards improving its revenue profile in the next couple of years. The company has bagged a Rs. 820-crore contract from PowerGrid Corporation for building convertor stations for power lines scheduled to go onli
ne from 2003. The fact that the company has bagged the orders in the second largest transmission project in the world may also be viewed favourably. The project would be executed in association with Siemens AG, Germany. But it may perk up the operational
contours of Siemens India which has been showing an improvement in last one year or so after a sluggish phase. The Siemens India stock may be on steady ground in the near term. _ BL Research Bureau.
Usha Beltron: A favourable scheme
THE scheme of arrangement approved by the board of directors of Usha Beltron involving a transfer of the information technology and the knowledge-based business to Usha Martin Infotech Ltd is expected to keep the stock price in the firm territory in the
near term. According to the arrangement, Usha Martin Infotech will issue to all the shareholders of Usha Beltron, one equity share of Rs. 5 each, credited as fully paid for every one equity share held by them in the latter along with one preference share
of Rs. 50 each for every preference share held in the company. Although the actual valuation of Usha Martin Infotech is difficult to gauge at this point in time, the current mode of distribution of ownership claims in the new entity appears favourable t
o the existing shareholders of Usha Beltron. Usha Beltron currently has three knowledge-based businesses namely Usha Communications Technology, Usha Martin Academy of Communication Technology and Usoft, which are to be transferred to Usha Martin Infotech
. The stock is trading at Rs. 299, having declined by Rs. 100 over the past three weeks._ BL Research Bureau.
Stocks
Select IT stocks recover
STOCKS of information technology companies were battered again on Thursday in early trade with not even a semblance of buying interest. This time around, the bearishness that enveloped most of the pivotals also pulled down the Sensex. Towards the day's c
losing, Infosys and Reliance Industries recovered on the back of strong buying interest.
LYONS RANGE
A SEE-SAW situation prevailed on Calcutta Stock Exchange on Thursday. Equal interest was evinced in infotech and stocks belonging to the `old economy'. Infosys went up to Rs. 8,365.60 from its overnight close of Rs. 7,746 even as Reliance gained on buyin
g interest to close the day at Rs. 323.40 from its overnight level of Rs. 299.50. Digital Equipment was a gainer at Rs. 661.50, up from its earlier close of Rs. 615.
Technical Analysis
Index recovers
THE index opened with a bull gap of about three points on Thursday. In the initial hours of the day, it made a gain of about 39 points to mark the high for the day. Later in the day, it lost heavily and plunged below the open of the day.
