Another rally in market, Sensex back in form
Mumbai: The markets bounced back heady days when fears of income tax raids were allayed and funds and retail investors returned with renewed enthusiasm. The benchmark index of the market, the Sensex of the Bombay Stock Exchange, bounced back with a handsome gain of 195 points to close at 5491.20. The S&P CNX Nifty of the National Stock Exchange too displayed strength to close at 1624.80, up 52.30 points.

The fillip came largely from two scrips, Hindustan Lever, and Mahanagar Telephone Nigam Ltd, both hitting circuit breakers. Most FMCG stocks firmed up, with Procter & Gamble, Britannia Industries, International Best Foods, Cadbury India, and Dabur posting gains. Select infotech stocks, which have published encouraging results for the third quarter of 1999-2000, were also in the limelight. Infosys Technologies, Polaris Software, Sonata Software, NIIT, Aftek Infosys, and Pentafour Software had a good number of takers. HCL Technologies witnessed frenzied buying, with the price reaching Rs 1,703. 

Foreign funds made an investment of nearly Rs 229 crore in one day on 11 January.
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IT surveys reveal hidden income of brokers
Mumbai: The income tax authorities announced that they carried out searches on the premises of a leading stock broker and unearthed Rs 92 crore of undisclosed income. The broker is understood to have agreed to pay an upfront amount as tax. He had earlier paid Rs 25 crore as advance tax in December 1999, but the income tax authorities found that he had not disclosed income worth Rs 92 crore.

The department has conducted surveys on 12 stock broking firms in the city and, according to senior tax officials, the initial impression is that many of them appear to be disclosing only a part of their real incomes.

The department said it will not rule out further surveys of brokers.
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Preferential issue by Jaypee Hotels
New Delhi: Jaypee Hotels is planning a preferential allotment of 20 million shares to promoter group companies – Jaiprakash Enterprises, and International Design Engineering Associates. The company needs Rs 50 crore for equipment purchase and working capital. The pricing of the issue will be decided in conformity with Sebi guidelines.

The company’s stock price is around Rs 23 per share. An extraordinary general meeting of shareholders has been convened on 27 January to discuss the matter.
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