But for how long? That's something that may need some answering after yesterday's (8th May 2000) 230-point fall in the BSE Sensex.

Last week the markets cheered the Yashwant Sinha-sweetner for the pharma and software sectors with the Sensex rebounding from a perilous 4,100 points to over 4,700 points in just 3 days. The cheering was followed by signs of some conviction that there was finally a trend emerging in the markets putting an end to some distressing volatility. However after yesterday's 230-point slide investors may want to perish such thoughts.

With the rebound in software and pharma counters last week, we had recommended a mix of caution and aggression while reviewing sectoral funds (particularly software and pharma). For the more cautious mutual fund investor we had suggested that he wait till this week in the hope of a definite trend. The way things stand now, it seems investors have some waiting in store for them.

Open-ended IT funds	NAV (Rs)	Last week	Last month	Since inception
Magnum Sector Funds - IT	18.66	6.00%	-17.90%	161.50%
Birla IT Fund (Growth)	23.82	5.40%	-7.70%	19.80%
Alliance New Millennium Fund (Gr)	9.6	4.20%	-10.80%	-37.20%
UTI Sector Fund - Software	25.77	3.80%	-15.50%	97.50%
IL&FS eCOM Fund (Gr)	7.24	2.80%	-21.30%	-46.90%
Chola Freedom Technology (Cum)	17.88	2.60%	-8.20%	27.90%
Sun F & C Emerging Tech. (Gr)	7.83	2.60%	-3.70%	-8.50%
Tata IT Sector Fund	13.41	2.40%	-16.40%	30.40%
Pru ICICI Tech. Fund (Gr)	6.73	2.00%	-17.70%	-31.60%
Kothari Pioneer Infotech (Gr)	32.88	1.70%	-7.50%	213.90%
Kothari Pioneer Internet Opport. (Gr)	8.73	1.00%	-2.10%	-8.90%

We reiterate our view that investors don't get too flattered with the 1-week returns of software funds and look for some emerging trends (and inform us when you find one!).

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