Mphasis up as HPstays committed

Mphasis opened the day for trading today at Rs.410 and even down to an intra day low at Rs.105, only to jump back and hit the day’s high point at Rs.420, up almost 3%. Volumes are muted at around 3700 shares today compared to over 11,000 shares over past two weeks average.

The market seems to be happy with the news that Hewlett Packard (HP) has stalled a move to sell its 60% stake in the company, thus putting the plans of the company’s founders, Jerry Rao and his ex-colleagues to naught. The promoters had received multiple investor backing of more than $1.5 billion.  HP has been having a bad run abroad and its share of business to Mphasis has been steadily on the decline over the past few years. Instead of giving mulit-year contracts, it now gives only single-year contracts. Mphasis has been looking at increasing its non-HP business but for now, things get back to status quo for the company.