Financial Daily from THE HINDU group of publications
Thursday, Feb 12, 2004
Financial Daily from THE HINDU group of publications Thursday, Feb 12, 2004 |
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Markets
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Stock Markets Columns - Ear to the ground Concern over swap ratio
THE counter of IFCI, which is to be merged with Punjab National Bank, came under heavy selling pressure on concern over its the merger ratio with PNB. Dealers said heavy selling was from players aware of an unfavourable merger ratio for IFCI shareholders. However, there were large number of players, who bought the shares of the financial institution in the last few minutes of trading. At close 16 lakh shares were traded on the NSE and around 8 lakh shares on the BSE. If the market talk is to be believed, the swap ratio is unlikely to be against the shareholders of IFCI and this resulted in active buying in the last few minutes of trading. On Wednesday, the shares of IFCI closed at Rs 12.70 down 19.87 per cent on the BSE with volume of 20.66 lakh shares, and on the NSE it closed at Rs 12.75, down 19.81 per cent with volume of 21.20 lakh shares.
Fortunes look up for Sesa Goa THE boom in the steel industry is driving the fortunes for companies producing raw material for steel. One such company is iron-ore producer Sesa Goa. The stock is back on the buy list of select market players on information of global shortage of iron ore leading to further rise in the prices of iron ore. Already prices of iron ore are at their 12-13 year high levels. Dealers said Sesa Goa is expected to benefit as it exports most of its iron ore. The talk is price of iron ore would rise further in the next few months due to huge demand for steel from China. On Wednesday, the stock of Sesa Goa gained 7.21 per cent at Rs 596.60 on the BSE with volume of 65,638 shares, and on the NSE it closed at Rs 592.95, up 6.49 per cent with volume of 1.23 lakh shares.
Non-ferrous cos gain SHARES of other commodities, especially non-ferrous metals, companies are also being lapped up by market players. Dealers said the shares of Hindalco, Nalco, and Hindustan Zinc were bought on Wednesday. This was mainly due to rise in the international prices of zinc and aluminium. The talk is that most of the FIIs are very bullish on commodities stocks and they have identified these stocks for their portfolios. Earlier, these stocks came under selling pressure following cut in the custom duties in the interim budget. Due to continued rise in international prices, the profitability of these companies is unlikely to be affected, dealers said. On Wednesday, Hindalco stock gained 4.20 per cent at Rs 1385.40 on BSE, Nalco closed at Rs 181.20 (up 4.20 per cent) and Hindustan Zinc at Rs 106.75 (up 5.59 per cent).
Virendra Verma
More Stories on : Stock Markets | Ear to the ground
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