Financial Daily from THE HINDU group of publications
Thursday, Feb 28, 2002

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Restructuring hopes to lift Indo Gulf?

A CORPORATE major that is, according to the grapevine, thinking of restructuring is Aditya Birla Group's Indo Gulf Corporation. The market talk is that the company is likely to hive off its fertiliser division into a separate company or sell it to a leading fertiliser company to concentrate on its copper business. As around 80 per cent of the company's revenues are from copper business, this move would be beneficial, market sources said. The market believes that if the plan works out, the company will get better valuation as the fertiliser sector is still highly regulated.

On the back of this development, a number of institutional investors have added Indo Gulf to their portfolio. Though the stock price of the company on Wednesday ended lower, at Rs 47, down 3.79 per cent, dealers are bullish on the counter on restructuring hopes.

Bharti Tele gains on Budget sop talk

AFTER being neglected by the market players in the first week of listing, shares of Bharti Tele Ventures were lapped up by investors on Wednesday. Volumes in the counter jumped sharply to 15.87 lakh shares (2.7 lakh shares on Tuesday) on the BSE and to 32.71 lakh shares (8.94 lakh shares) on the NSE. The stock closed marginally up at Rs 44.10 on the BSE and at Rs 44.45 on the NSE.

Rumours that the Finance Minister might announce an increase in the FDI cap for the telecom sector to 74 per cent in the Budget have sparked trading interest in the stock. Currently, the FDI cap is at 49 per cent and the RBI has already issued a notification on restriction on purchases in Bharti Tele-Ventures shares by FIIs

UTI sells Nifty through basket trading

UNIT Trust of India (UTI) has been actively selling most index stocks in the run-up to the Budget. The rise in the stock indices in the initial hours was also used by the country's largest mutual fund to exit from Nifty stocks. In fact, the fund sold the entire index through basket trading without affecting the overall market. Dealers, however, said the fall in the market from the morning high was not due to selling by UTI.

Virendra Verma

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Stories in this Section
Bulls retreat

Interest perks up in bank stocks on Budget hopes
Markets edgy on eve of Budget
Restructuring hopes to lift Indo Gulf?
Make debt market transparent: Mehta
Beware Budget volatilities
HSE derivative trading from next month
Ludhiana SE begins trading in derivatives
NSE derivatives' volumes cross Rs 1,500-cr mark
Train attack subdues market sentiment
Sharekhan plans IPO to give VCs exit route

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