The Hindu Business Line : Up on price hike hopes

TALK of a possible hike in HR coil prices saw the stock price of most mid-cap steel companies gather strength on the bourses on Monday. Brokers said that there is talk that HR manufacturers are likely to hike prices by $35 by the month end or early next month.

"There is value buying at lower levels," said a dealer. Counters such as Essar Steel, Uttam Steel and to an extent SAIL all ended the day firm. While Essar Steel ended the day at Rs 20.90 up 10.88 per cent with around 28.86 lakh shares traded on the BSE, Uttam steel ended at Rs 16.10, up 9 per cent with around 5.39 lakh shares traded.

Manufacturers of long steel products had hiked prices early this month by Rs 1,500 a tonne thereby providing a shot in the arm to steel sector.

However, in sharp contrast and following reports of China taking price control triggers to curb inflation, sentiment at some of the leading steel majors Tata Steel etc was adversely impacted today.

Sources said that globally, prices of leading Japanese steel majors such as Nippon Steel dipped in reaction to the China report.

Funds' backing seen

Fund buying led the stock of MTNL register good volumes on Monday in an otherwise volatile market.

Terming it a value pick, brokers said funds such as HSBC, Government of Singapore, and Reliance Mutual Fund have been shoring up their portfolio.

Market sources said that while the stock may have ended the day weak on Monday, it has been ruling firm amidst good volumes in the last three trading sessions, despite depressed market sentiment. "It s a restructuring story," added a dealer.

The stock ended the day at Rs 149.85, down 0.73 per cent, with around 22.79 lakh shares traded.

Racing towards results

THE stock of auto major Bajaj Auto witnessed sustained investor interest as a run up to the company's Q4 results.

Brokers said that anticipation is ruling high given that the company has said it would consider a stock split at its forthcoming board meeting.

The stock ended at Rs 936.35 with around 42,333 shares traded on the BSE.

Deeptha Rajkumar

More Stories on : Stock Markets | Ear to the ground

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page