The 54-point pick-up in the BSE Sensex has brought no relief to fund managers, who are still concerned about the persistent fall in the prices of Infotech stocks which constitute a major portion of their portfolios.

Major gains yesterday were posted in commodity stocks like ACC, Kesoram, Ballarpur and Sterlite, all of which hit the upward circuit.

IT/Convergence/Media giants like Satyam Computers, NIIT, Aptech, SSI, Pentafour Software, Zee Telefilms, HFCL, Global Tele, HCL Infosys all hit the downward circuit. The 3.7% rise in Infosys came as a welcome relief, but won't compensate for the damage done by the other (IT) stocks to their portfolios.

As investors flock to redeem their units, fund managers may have to offload their IT holdings at lower prices. As commodity stocks steal the limelight from IT, fund managers find themselves unable to exploit the opportunity to book profits as their holdings in commodity stocks are insignificant.

If the upward trend in commodity stocks persists, maybe investors should look at funds with higher exposure to cement/steel/metal stocks. However, the smart investor may want to enter into IT funds now, which are looking more attractive.

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