The Hindu Business Line : Maruti on reverse gear

RUMOURS of the company looking at poor sales numbers for the month of May saw the Maruti counter come under pressure on Tuesday price wise, despite witnessing huge volumes.

Dealers said that a leading brokerage had started selling the index, which also was one reason that the stock was in negative territory. ``The selling looks to be more of short term nature. We have seen some amount of selling in the auto sector which could be due to a shift in portfolio,'' a dealer said.

Analysts, however, maintained that there would be no drastic fall but in all likelihood sales would be flat. "Volumes are likely to be good for the month and will reflect a Y-o-Y growth. The company has done well in the B1 segment (Alto, Zen and WagonR),'' said an analyst.

The stock ended the day at Rs 454.95, down 4.04 per cent, with around 41.39 lakh shares traded on the BSE and on the NSE the stock closed at Rs 454.25, down 4.20 per cent, with around 79.44 lakh shares traded.

Subsidy shocks

CONCERN over a cascading effect coming in from the AP Government's decision to subsidise power for farmers in the State reportedly impacted sentiment at the Reliance Energy counter on the bourses on Tuesday.There is a growing perception that there will be no aggressive reforms in the power sector and one could see a slowdown in power projects.

Dealers, however, said that it was more of a knee-jerk reaction given all the expectations of the power sector and thus short term in nature. Market sources said funds, in particular FIIs, have been buying at these levels. "These counters are more of a long term play," said a broker.

The stock ended the day at Rs 552.90, down 4.72 per cent, with around 1.86 lakh shares traded on the BSE. On the NSE the stock ended at Rs 553.90, down 4.60 per cent, with around 4.12 lakh shares traded.

Bonus buzz boost

TALK of a liberal bonus spurred interest in Indian Rayon on Tuesday, which has in the past been touted as a restructuring play.

Market sources, however, said that this alone was not the catalyst and word on the street was there is some corporate development in the offing. On that buzz alone, the stock ended the day flat at Rs 218.65 on the BSE with around 74,784 shares traded. On the NSE the stock closed at Rs 219.75 with around 1.02 lakh shares traded.

Deeptha Rajkumar

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