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Friday, Dec 13, 2002

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NIIT gains on FIIs buying

THE NIIT stock is back on the FIIs' buy-list following encouraging fourth quarter results. The FII backing was the main reason for the software and computer education company stock gaining steadily over the last few days.

The reason for the FIIs to turn buyers in NIIT stock is the decent fourth quarter performance; they also expect strong signals for the year ahead.

The education business of NIIT registered nine per cent year-on-year growth after negative growth in the last five straight quarters.

The view among FIIs and some foreign broking firms is that 52 per cent market share in education, superior visibility and a broad array of course options could combine with increased recruitments from Indian software vendors to attract students back to NIIT in 2003. The business from 26 new clients (including 6 Fortune-500 companies) in software services point to continued growth visibility ahead. All these factors would be in favour of the company in the next few quarters.

In today's trading, the stock of NIIT ended 4.14 per cent higher at Rs 184.9 on the BSE with volumes of 29.21 lakh shares. On the NSE, the stock closed at Rs 187.15, up 5.35 per cent with volumes of 58.60 lakh shares.

MphasiS up on Accenture interest

The talk of Barings Private Equity Fund divesting its 36 per cent stake in MphasiS BFL is active again in the market. Dealers said Accenture was tipped to acquire this stake. Already there are talks that Accenture is to use MphasiS BPO subsidiary - MsourcE - for its BPO business.

The talk of Barings divesting its stake in MphasiS had been in the market for long time. Dealers said due diligence for the sale of stake was already on. This had led to some buying from informed sources, dealers said.

Another opinion in the market is that after the deal, Accenture would make an open offer to the public and de-list the company. Most of MphasiS holding is with private corporate bodies and around 25 per cent is in the hands of public (including FIIs and mutual funds).

MphasiS closed at Rs 693.75, up 6.41 per cent with volumes of 10,964 shares on the BSE. On the NSE, the stock closed at Rs 699.5, up 7.35 per cent with volume of 39,418 shares.

Virendra Verma

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