Desi funds charmed by MTNL

STREET SIGNS

Reliable fund has made a foray into the Polaris Software stock, which has resulted in the stock surging 11.75 per cent during the day to Rs 145.75.

The fund interest in the stock seems to have stemmed from the fact that Polaris has entered into a memorandum of understanding (MoU) with Bank of Overseas Chinese of Taiwan for a multi-million dollar deal to facilitate a technology-led transformation of the bank.

It is believed that the deal size could be $5-10 million. Reliable fund's other deal happened at the Oudh Sugar Mills counter, where it sold close to 90,000 shares at Rs 101. The stock has appreciated more than 40 per cent in the past month.

More the merrier
It is funny how some parties get stuck into particular counters. For example, Kodak fund just can't seem to have enough of ABG Heavy Industries stock.

Earlier in the week, we had reported that the fund bought a lakh of shares at Rs 119 levels. Kodak has gone a step further and has made even more purchases at the counter. The fund has bought another 1.3 lakh shares at Rs 140.

The emerging stories
On the contrary, Emerging fund's love affair with the Crew BOS stock (the company is into fashion accessories, home furnishing and decoration products) seems to be over for now. The fund had bought a lakh of shares of Crew BOS at Rs 116 levels, adding to its already existing holding.

Now that the stock seems to have stabilised around Rs 120 levels, after doubling from the beginning of the year, it is time to sell. The fund is said to have sold two lakh shares of Crew BOS.

Emerging fund's actions at the Crew BOS counter points to something more sinister. The fund suddenly seems to have gone on a selling spree. Another counter, where it has pressed the 'sell' button is Ind-Swift Ltd, where it sold four lakh shares at Rs 65 levels.

But the mystery behind the murky goings on were cleared up a bit, when it emerged that the fund was raising funds to buy into the newly listed pharma stock Nectar Life Sciences, where it bought a lakh of shares at Rs 261.

In other news.
Desi funds are said to be buying into the MTNL stock, with chartists backing the stock to move up 15-20 per cent in the next three months. Big Boy fund suddenly seems to have developed an affinity towards Heritage Foods stock.

The fund has bought more than 3 lakh shares at Rs 109. Probably the fund is on the look out for good dividend yield stocks. Just last week, the company had declared a 30 per cent dividend for FY05.