The Hindu Business Line : Powered by commodity prices

WITH commodity prices looking up and growing interest in power sector stocks, market players are looking at DCM Shriram Consolidated stock, a good pick up having mixture of both.

Dealers said the stock is being accumulated by a section of the market due to good prospects for the company's various businesses. The company is into the business of PVC, Chloro Alkali, Cement and Sugar. In addition, it has a captive power plant. The market buzz is that most of the businesses have done well in the last fiscal and this trend is likely to continue. The prices of the various commodities produced by the company are also up, leading to good earnings prospects in the current fiscal. Dealers said that with good mix of various commodities, the company should show a growth of over 40 per cent this fiscal.

On Tuesday, the stock gained 3.37 per cent at Rs 259 on the BSE with volume of 4833 shares and on the NSE, it closed at Rs 257.70, up 4.16 per cent, with volume of 5411.

Poor numbers pull it down

ON a day when most of the IT and software companies shares closed higher, MphasiS BFL Software bucked the trend. This is despite the company's announcing a 1:1 bonus issue, second in a row and much above the market the expectations.

Dealers said there has been some selling in the counter after the results were announced. Several broking firms are also recommending their clients to off-load their shares and this is the main factor for the stock price of the company to remain depressed. The talk is that selling is due to the company unlikely to show a very encouraging first quarter results due to pressure on the profit margins. The buzz is that the management in the conference call (after the results) had hinted about the margins pressure and this has not been taken well by the market.

On Tuesday, the stock price of MphasiS BFL was down by 1.32 per cent at Rs 574.75 on the BSE with volume of 11,061 shares and on the NSE it closed at Rs 575.35 with volume of 46,150 shares.

FIIs make a beeline to non-techs

THERE was active buying in various old economy index heavy weights on Tuesday in the later part of the day. Dealers said this led to sharp rise in the indices in the last couple of hours of trading.

Several London-based investors are believed to have placed big orders, including index buying, in the later part of the day. This buying was mainly ahead of the financial results these companies are likely to announce later this month. The talk is that most of the companies may announce good results.

Virendra Verma

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