The Hindu Business Line : Fund buying at lows

According to an institutional dealer, some local funds have picked up reasonably large number of shares. Many equity dealers believe that energy sector stocks would be re-rated over the next few weeks.

The Chennai Petroleum stock closed almost flat at Rs 154.55 with a trading volume of 1.84 lakh shares on the BSE and 6.47 lakh shares on the NSE. About 2.27 lakh shares were marked for delivery.

GAIL (India) shares lost about 1.24 per cent to close at Rs 226.90. While about 16 lakh shares were traded on the BSE, more than 46 lakh shares changed hands on the NSE. About 13.43 lakh shares were marked for delivery.

Good results prop up cement

INSTITUTIONAL investors were buying Grasim shares on Wednesday after the company reported excellent performance during last year. It also declared a dividend of Rs 14 per share.

An equity analyst said the company was likely to increase cement price by about Rs 5-15 per bag soon. There were also a couple of domestic funds on the sell side in the afternoon, a dealer said.

The stock gained 2.66 per cent to close at Rs 1,197.10. While over 3 lakh shares changed hands on the BSE, 5.54 lakh shares were traded on the NSE. Investors took delivery of nearly 42 per cent of the combined volume.

FII selling complete

A foreign institutional investor, which had been a steady seller at the counter of Hyderabad-based drugmaker Dr Reddy's Laboratories, is said to have completed selling on Wednesday.

According to the grapevine, the stock had been under selling pressure from this investor for the past several days. The stock closed 2.8 per cent lower at Rs 903. Over 1.5 lakh shares were traded on the BSE and nearly 3 lakh shares changed hands on the NSE.

Underlying strength

THE stock of technology company Satyam has been showing unusual resilience for several weeks now due to institutional buying support.

While some analysts say that the stock is undervalued compared to peers, a few believe the company is on the verge of selling a stake in its Internet services company Sify. The market grapevine has it that a Singapore-based private equity fund has shown interest in buying equity in the company. Satyam closed almost flat at Rs 317 with about 25 lakh shares traded on the BSE and over 65 lakh shares traded on the NSE.

Dinesh Narayanan

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