The Hindu Business Line : FII interest boosts it

THE counter of Aban Loyd Chiles Offshore, a company engaged in offshore and onshore drilling, has been gaining over the last few days. Dealers said the stock is being accumulated by a leading FII.

The market talk is that this FII, which is bullish on oil sector, bought the shares of Aban Lyod. The company provides oilrigs to companies such as ONGC for drilling of oil.

In the last one month, the FII has accumulated a large quantity of shares on expectation of further orders from oil drilling companies.

On Thursday, the stock gained 4.95 per cent at Rs 466.55 on the BSE with volume of 12,422 shares; on the NSE, the stock closed at Rs 470.05, up 5.99 per cent with volume of 1.06 lakh shares.

End of staff attention

AFTER gaining constantly in the last one month, the stock price of Divi's Laboratories fell on Thursday. Even though there was no negative development for the stock to fall, dealers said the fall was mainly due to selling by the employees of the company.

The employees had been allotted shares at the time of IPO which they could not sell due to lock-in period . With the one-year lock-in period completed, employees were cashing in on the opportunity.

Another reason for the fall was that a leading FII has stopped its buying in the counter. It is believed the active purchase by the FII took the stock from Rs 1,500 to Rs 2,000.

Now with the buying from this FII is over and in the absence of fresh buying, the stock price fell. On Thursday, Divi's was down 7.69 per cent at Rs 1,775.45 on the BSE with volumes of 47,367 shares; on the NSE, the stock closed at Rs 1,762.20, down 8.83 per cent with volumes of 1.57 lakh shares.

Margin pressure takes its toll

The counters of frontline automobiles companies — Tata Motors, Hero Honda, Bajaj Auto and Maruti — were down on Thursday. Dealers said the fall was mainly on concern that the strong growth seen by these companies in the current fiscal may not be sustained in the next fiscal.

In addition, the rise in the steel and aluminium prices, key raw materials, is likely to impact the profit margins of these companies.

On these concerns, several players sold their holdings in these stocks on Thursday.

Virendra Verma

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