L&T moves up on value buying

MUMBAI:The scrip of engineering major, Larsen & Toubro that ended in negative territory on Monday, was up 2.72% at Rs 714 in initial trade on the back of some value buying.

However, analysts term the upsurge a short term pull back and don't expect it to sentiment as overall sentiment is weak.The stock had lost over 17% in the past week on concerns that the company is likely to register huge losses on account of its investment in Satyam.

L&T had bought shares in Satyam till the first week of January and holds a 3.95% stake in the company. Analysts reason L&T had acquired this stake in Satyam to form a strategic alliance, given the company's existing interest in the IT sector through its subsidiary L&T Infotech.

L&T Capital and L&T Infotech are wholly owned subsidiaries of Larsen & Toubro. They however believe,the stake���more of a portfolio investment���is not a positive for L&T's subsidiary, L&T Infotech, given that it has a smaller operation versus Satyam's 53,000 employee base.