The Hindu Business Line : Cashing in on finance

Dealers said the interest in the counter has come after a long time. The main factor for this is the good financial position of the company and low risk in the current market environment.

The talk is the company has cash of around Rs 40 per share and this makes the stock a low risk investment. Moreover, the various films being produced by the company and other initiatives like film institute and venturing into TV software business is also likely to bring in additional benefits.

Investors are also betting on the huge growth potential for media industry, which in turn will benefit Mukta Arts.

On Wednesday, the stock price of the company gained 4.47 per cent at Rs 49.10 on the BSE with volume of 23,791 shares and on the NSE it closed at Rs 49.35, up 4.33 per cent with volume of 75,966 shares.

In top gear

THE stock of Ahmednagar Forgings, a subsidiary of Amtek Auto, was in limelight on Wednesday. The stock gained 9.52 per cent at Rs 92 on the BSE with volume of 7,309 shares and on the NSE it closed at Rs 91.60, up 9.90 per cent, with volume of 10,703 shares.

Dealers said the interest in the stock has again emerged on expectation that the growth of auto ancillary sector will continue. Moreover, the sharp rise in the price of Amtek Auto in the last few months is also another factor for the interest in the stock.

The talk is that the stock valuation of Ahmednagar Forgings is being compared to Amtek Auto. In 2002 Amtek Auto had acquired 30 per cent stake in the company and another 20 per cent through open offer at Rs 35 per share. Currently, Amtek Auto holds 62 per cent in the company. Dealers said with Amtek Auto growth likely to continue, the same is expected for Ahmednagar Forgings.

The last hour rush

JUST before the expiry of derivatives contracts on Thursday, heavy selling in Sensex and Nifty in the last one hour brought down these indices into negative territory.

The interesting part was that the high and low of these indices on Wednesday was touched in the last one hour.

Dealers said big institutional investors (both local and foreign) were sellers in the indices. These institutions have hedged their portfolios in the cash market and are sellers on every rise in the last few days.

Virendra Verma

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