Financial Daily from THE HINDU group of publications
Saturday, Dec 27, 2003
Financial Daily from THE HINDU group of publications Saturday, Dec 27, 2003 |
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Markets
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Stock Markets Columns - Ear to the ground Cables stocks in buy list
THE counters of cables companies are being accumulated by a section of the market over the last one-week. Dealers said the accumulation is on back of large-scale investments in the power sector. The talk is that the cable industry stocks are set for re-rating due to the overall re-rating of companies in the power sector. Stocks of most of companies in the power sector or related to the power sector have gained 100 per cent, but the same is not seen in the cable industry stocks. Some of the companies' shares that are being bought include Universal Cables, Torrent Cables and Finolex Cables. Dealers said the fundamentals of these companies are good and now several institutional investors are eyeing the stocks. Due to buying from select investors, all these companies' shares gained on Friday. The stock of Universal Cables gained 9.98 per cent at Rs 30.30 on the BSE, Torrent Cables gained 4.94 per cent at Rs 74.40, Finolex Cables gained 2.33 per cent at Rs 173.45 and RPG Cables gained 16.83 per cent at Rs 20.48.
Surges on FII buys AFTER the spurt in several mid-cap IT stocks, some FIIs have now started eyeing small cap IT companies. The list includes Helios & Matheson Information Technology. In the last one week, the stock has gained 40 per cent and in one-month, the rise is 140 per cent. Among the factors for the increased interest in the stocks is strong financial performance of the company in the first half of six months. Dealers said the company has already reported earnings per share of Rs 8 in the first half and for the full year, it is likely to be around Rs 20. On Friday, the stock gained 4.99 per cent at Rs 103.15 on the BSE with volume of 1.41 lakh shares.
Gains on hopes of sops AFTER sops for basic and cellular operators, the Government is likely to provide some incentive for the now Tata group company, Videsh Sanchar Nigam Ltd (VSNL). The market buzz is that the sops for the company is likely to be similar to those provided to other telecom companies earlier this week. Based on this, several institutional investors entered the stock on Friday. The stock gained 14.20 per cent at Rs 155.25 on the BSE with volume of 9.39 lakh shares and on the NSE it closed at Rs 155.25, up 14.49 per cent with volume of 15.65 lakh shares.
Virendra Varma
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