The Hindu Business Line : Institutional appeal

Dealers said the interest in the stock has re-emerged, with most of the buying coming from institutional investors. The volume in the counter also doubled compared with Wednesday.

If market talk is to be believed, several players have started looking at the company's valuation with Bharti Tele-ventures and feel the stock is undervalued.

Moreover, the company has undertaken capital expenditure and the impact of this is likely to be seen in the next six months.

On Thursday, the stock price of MTNL gained 9.52 per cent at Rs 161.65, with volumes of 21.53 lakh shares on the BSE; on the NSE, it closed at Rs 162.05, up 9.75 per cent, with volumes of 53.69 lakh shares.

Yielding dividend

AFTER the turnaround story in SAIL shares, market players are seen actively accumulating it for dividend yield purpose.

The grapevine has it that the company is likely to pay dividend of around 20 per cent (Rs 2 per share) for the financial year 2003-04. This is mainly due to the record profits earned by the company during the year. Talk is that at current price, the dividend yield works out to around 5 per cent and is considered good by these players.

On these expectations, some brokers have started recommending the stock to their clients. In addition, certain market players also expect another good financial year ahead for the company.

On Thursday, the stock closed at Rs 39.70, down one per cent, with volumes of 31.43 lakh shares, and on the NSE, it closed at Rs 39.95, down 0.50 per cent, with volumes of 73.36 lakh shares.

Weaving a success story

WITH interest in mid-cap stocks back, several market players have started accumulating the shares of textile companies.

Dealers said some market players have turned bullish in this sector as 2005 comes closer.

In addition, several companies are expected to report good results in the March quarter. Talk is that several FIIs are also interested in various textile companies.

A leading domestic broking firm, which held an international conference for FIIs with Indian textiles companies, has started advising its clients to buy the shares.

Among the shares that are being recommended are Arvind Mills (up 1.52 per cent at Rs 56.80), Century Textiles (up 3.66 per cent at Rs 123.25) and Alok Textiles (up 4.25 per cent at Rs 55.20).

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