Financial Daily from THE HINDU group of publications
Thursday, Nov 20, 2003
Financial Daily from THE HINDU group of publications Thursday, Nov 20, 2003 |
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Markets
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Stock Markets Columns - Ear to the ground Demerger blues pull L&T, Grasim
THE stock market seems to sense some trouble in the demerger of the Larsen & Tourbo's cement division and its sale to Grasim. If market talk is to be believed there is possibility of a change in the valuation of the demerger. This is mainly due to the strong positive outlook for the cement sector. In addition, the stock price of L&T has gained after the deal was announced. Talk is that L&T is now asking for a higher price for the demerger and Grasim has not taken to this positively. Dealers said due to this there could a possibility of the deal being called off. On the back of this, some market players have turned bearish on these stocks. This was one of the reasons for the stock price of Grasim and L&T falling on Wednesday. The stock of L&T fell 4.84 per cent at Rs 368.70 on the BSE; on the NSE, it closed at Rs 369.40, down 4.78 per cent. Grasim closed lower at Rs 838.30, down 3.42 per cent on the BSE, and at Rs 840.80, down 3.33 per cent, on the NSE.
UTI Bank up on placement talks ON a day when most of the banking stocks declined, UTI Bank bucked the trend; UTI Bank gained 12.23 per cent at Rs 81.70 on the BSE with volumes of 3.76 lakh shares. On the NSE, the stock closed at Rs 81.75, up 12.14 per cent with volumes of 10.23 lakh shares. Dealers said the rise in the price was mainly on talk that the UTI stake would be placed with some foreign bank. The rumours have been floating in the market for more than six months and till now nothing concrete has been announced either by UTI or the management of UTI Bank. Another factor for the rise in the stock was active buying by some institutional investors due to the good performance of the bank. Dealers said the bank has been gaining market in the retail segment and this is considered positive by the stock market.
Concor gains on good prospects Public sector Container Corporation of India (Concor) has been accumulated by some market players over the last few days. The accumulation is mainly due to the company performing well this fiscal. Dealers said Concor has increased its fleet, with capacity of carrying more weight, over the years. With the revival of the economy there has been increased demand for the company's containers. Concor gained 5.25 per cent to Rs 574.65 on the BSE with volumes of 88,331 shares; on the NSE, the stock closed at Rs 575.20, up 5.18 per cent with volumes of 45,945 shares.
Virendra Verma
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