Stock market laps chip makers as scrips go soaring

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Chipmakers gain strongly in stock market amid China de-coupling play

By S Jha

New Delhi, April 24: Global equity markets continue to stay on bullish path. Dow Jones posted handsome gains last night. NASDAQ too rallied strongly.

The Indian indices showed two-faced actions on Tuesday. The indices witnessed sell on rise actions yesterday. They are likely to extend gains, tracking the global cues.

Nifty and Bank Nifty, as per market participants, may face congestions in the short term. But the indices are leadership from the frontliners.

Maruti created history by breaking of from the levels of ₹ 13000 in the yesterday session. Maruti was in the good company of Tata Motors. Both the scrips rallied strongly in the yesterday’s action.

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There are hints that the depth in the market is getting strong. The gainers outpaced the losers by 3:1 ration in the yesterday’s session. The broader market rally is not reflected in the overall gains of the indices.

Semiconductor play is buzzing on the street. The global chip concern has been playing out after the Corona outbreak. India is also seeking self-reliance in chip making.

Tata-owned Tejas Networks is rocking the stock market with extraordinary gains in its share prices. It began rallying even before the announcement of the quarterly results.

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Tejas Networks has gained over 60 per cent in just one month. This was acquired by Tatas only two years ago.

Tejas Networks principally is in the telecom sector. It works majorly with BSNL. The firm was buzzing with the government plan for the revival of BSNL.

Tejas Networks had acquired a semi-conductor design firm from Bengaluru a few years ago. It is now above the level of ₹1000 for the first time in its history, During Corona outbreak, it had gone to the level of ₹40.

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Moschip Technologies is another semi-conductor play. The share price of this firm has gained over 55 days in just five days.

Moschip Technologies was trading in the range of ₹90-100 for several days. The market participants claim that this semi-conductor play gave a major breakout above the levels of ₹115. It’s now trading at ₹160.

While the financial parameters such as return on equity (RoE) and return on capital employed (RoCE) are in single digits, the investors are lapping the shares of the firm in the hope that India’s bid for semi-conductor reliance may bring good tides for the firm.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)