Shares of technology company Newgen Software have declined in five out of the last six sessions. The stock ended 5.2 percent lower on Thursday after nearly 3 percent of the total equity exchanged hands in a large trade.
Sources within the dealing rooms tell CNBC-TV18 that a leading FII is likely to be the seller in this transaction.
Based on the September-quarter shareholding pattern, Foreign Investors like Goldman Sachs, Massachusetts Institute of Technology among others hold stake in the company.
A Volatile Expiry
Indian equities ended the October F&O series on a positive note with benchmark indices ending the session with gains. Metals were the outperformers on Thursday while IT stocks dragged courtesy weak overnight cues from Wall Street.
Dealers believe that flows today were largely mixed but driven mostly by expiry-related plays. They also say that the Nifty is struggling to cross the mark of 17,800 with aggressive rollovers done for the upcoming series.
For the November F&O series, some of the key triggers include the continuation of the earnings season, the MSCI rejig in mid-November, and mid-term elections in the US.
Besides Newgen Software, here are some other stocks that have been part of the dealing room chatter today:
Hindalco: The metal major ended as one of the top performers on the Nifty 50 index on Thursday, gaining 3.5 percent. The stock gained for the third straight session. Dealing rooms suggest that FIIs have been active participants in the stock with follow-up buying seen on one of the large FII desks.
Cipla: While most Pharma names were under pressure, Cipla stood out, ending 0.9 percent higher on Thursday. The stock also gained for the third straight day, hitting a 52-week high in intraday trading. Dealers suggest that there have been strong buy flows at the leading FII desk and that delivery volumes are likely to be high in Thursday's session.
Max Financial: The stock has been under pressure recently, ending lower for the second day in a row and also closing near its 52-week low. Dealers suggest that a leading FII has been an active seller in the counter. However, they add that the selling pressure is likely to abate soon.
Also Read: Axis Bank-Max Life deal: Insurance regulator increases penalty to Rs 5 crore for violation of norms
Note To Readers
Disclaimer: The stocks discussed in this article are based on unconfirmed reports from dealing rooms. It is advised to carry out your own due diligence before making any investment decision.
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