Infy up 12% on US fund buying talk

MUMBAI: Shares of Indian bluechip software services firm Infosys Technologies

Ltd. jumped 12 per cent on Tuesday afternoon on speculative bidding amid market

talk that a large US fund was among the buyers, dealers said.

At 1:39 p.m. (0809 GMT), the share was up 12 per cent at Rs 7,280 on the

Bombay exchange. The rise propelled the benchmark Bombay index, in which the

stock has the second heaviest weighting, up 2.25 per cent to 4,295.84.

"There is no confirmation today of foreign buying interest," said

Nikko Stock Broker head dealer Arun Kejriwal. "The buying is mostly led by

local speculators." Another dealer at one foreign brokerage said there was

some foreign buying, led by a large US fund.

Sector analysts said software shares were looking attractive after they had

fallen sharply in line with a market decline over the past few weeks. Infosys

shares had fallen to Rs 6,255.10 on August 4 from Rs 8,626.20 a month ago.

"The stock is a good buy at Rs 6,000-6,500," said Pranav Securities

analyst Priya Rohira, adding she expected the company to maintain its robust

earnings growth over the next quarters after a 100 per cent rise in first

quarter profits.

A weakening rupee is also seen boosting the profits of software firms which

earn over 90 per cent of their income through exports in dollars. The rupee has

fallen 2.25 per cent since July 1 against the dollar, and was quoted at 45.69/70

per dollar on Tuesday afternoon.

(C) Reuters Limited 2000.