Software stocks are back with a vengeance. So much so that some fund managers have already started booking profits in cyclical stocks in order to accommodate software stories in their portfolio.
Just a couple of weeks back, these very fund managers were crying hoarse about the slowdown in infotech spending till 2000 AD, stating that the bottomlines of software companies would take a clobbering. Suddenly, they seemed to have done a somersault and in the process triggered a buying frenzy in software scrips.
While players are positive that buying interest in frontline companies will be sustained, they are not so sure about the second-line lot. Many firms have understated their dependence on Y2K. With the Millennium Bug business already on the decline, the first-quarter results of some these companies could turn out to be rattlers.
