FIIs pick up ICE counters

MUMBAI, JULY 12. Led by Satyam Computer and Zee Telefilms, information, communication and entertainment (ICE) counters bounced back on the Bombay Stock Exchange following speculative buying coupled with selective purchases by foreign funds.

The benchmark index closed above the 4919-level, considered to be the strong resistance level at 4964.28, a smart gain of 66.21 points.

Late overnight results announced by Satyam Computer infused some optimism among market participants who made fresh purchases in ICE counters. The company registered a net profit of Rs. 50.36 crores for the first quarter ended June 2000, a rise of nearly 95 per cent over the corresponding period last year.

Despite a downtrend on Nasdaq stock market, a better-than- expected second-quarter results by American company, Yahoo Inc. also aided the firm trend in ICE sector.

Foreign institutional investors reportedly purchased shares of select software counters such as Satyam Computer, Infosys Technologies, SSI and Wipro. Local institutions and domestic funds purchased shares of some Indian companies.The BSE-30 share sensitive index opened lower at 4883.65 and fluctuated in a range of 4967.14 and 4862.49 before closing at 4964.28 against yesterday's close of 4898.07, a gain 1.35 per cent.

A few select old-economy shares moved up further on local institutional buying.

Dealers said the Sensex had crossed the long-term strong resistance level of 4919, known as 200-day moving average, and if it remained above this level for another two successive days then a rally up to 5200-5300 is not ruled out.