SOFTWARE, PHARMA AND MEDIA ISSUES RECEIVED AN OVERWHELMING RESPONSE'
Says Birendra Kumar, Managing Director, SBI Capital Markets Limited

Q.How stock markets are expected to behave in the next few months and what are the bullish reasons for stock markets to keep them up?
A.The equity markets were languishing for nearly four years and positive signals have emerged since June 1999. Some of the software, pharma and media issues have done really well and have received an overwhelming response from the public. However, some of these scripts are currently quoting below the offer price, which has dampened investors' interest to some extent. Economic scenario in India continues to be good, business confidence is high, and Secondary Stock Valuation is attractive. The fall in the BSE sensex in sympathy with the fall in NASDAQ was overdone. Indian companies offer better growth prospects in the longer term and can justify significantly higher valuations.
We expect the market to improve with the trigger being first quarter results. We see BSE sensex rising by another 800-1000 points in the next few months.

Q.Do you see another Info boom?
A.With Info sector growing at a rapid pace in India, there would be lot of demand for good quality paper in the Info sector.

Q.How investors can identify good IPO?
A.Investors should take into consideration the track record of the promoters, financial performance of the company, its future plans, valuation vis-a-vis the valuation of the other companies in the Industry. Investors can also draw comfort if the project has been appraised.

Q.Do you think there should be more laws to improve quality of issues?
A.The regulator has taken enough steps to safeguard the interests of the investor. Eligibility norms have been introduced. SEBI is also expected to come out with guidelines, which would require a company to have a three-year track record of profitability for charging a premium. In my view, there is no requirement for any further laws to improve quality issues. The onus is on the Corporates and the Merchant Banking community to ensure a high standard of quality.