Navneet Publications up 11%

MUMBAI: Shares of Navneet Publications were up 11.2% at Rs45.50, as investors expect the company to grow, when most sectors are reeling under the impact of a global recession. This optimism stems from the belief that the government's spending on education is unlikely to slow, even if it has to slow spending on other segments such as infrastructure.

Navneet publishes educational books, produces scholastic paper stationery, non-paper stationery products and has moved into multimedia software on classroom teaching.

Analysts say the education sector faces lesser risk of seeing a slowdown in demand, given the increased importance of education as a necessity. "In a country like India, middle-class parents may comprimise on everything, but education. As a result, this sector is being seen as the best defensive bet in a slowing economy," said an analyst with a domestic brokerage who is not authorised to speak to the media.

Navneet shares have risen close to 15% in the last couple of days. Sales officials at institutional brokerages said there have been enquiries by foreign funds about listed companies in the education sector in the last couple of weeks and expect some buying in this space soon.