The Hindu Business Line : Gains on stake sale buzz

THE on-again, off-again rumours of auto giant Bajaj Auto buying out Maharashtra Government's stake in Maharashtra Scooter would appear to have revved up the stock price of the company. Maharashtra Scooters moved up by almost 7 per cent on the BSE on Thursday to close at Rs 116.50.

The stake sale rumour apart, dealers speculate that the counter may have also been propped up on account of buying by Kolkata-based brokerage CD Equisearch Pvt Ltd, which has a significant chunk in the company. As on March 31, 2004, Western Maharashtra Development Corp Ltd has a 27 per cent stake in the company with Bajaj Auto holding a 24 per cent chunk. CD Equisearch has a 7.68 per cent stake.

Up on stake shedding talk

RUMOURS of a possible stake sale has been dogging the counter of courier company Blue Dart. Word on the street is that stake sale could happen at Rs 250 levels with the company rumoured to be looking at offloading 20 per cent to international courier company DHL.

The stock has appreciated by almost 31 per cent from around Rs 129 on the bourses to Rs 168.85. The company had, however, denied knowledge of any such move in the past. The stake sale rumour apart there is also talk that the promoters have been buying at the counter. The stock ended the day at Rs 168.85, up 15.45 per cent, with around 90,771 shares traded on the BSE.

Volatile trend persists

CEMENT counters continued to reflect a volatile trend, mirroring the markets uncertainty over whether or not cement producers would be able to pass on the coal price hike. A surge in international coal price had compelled public sector major Coal India to hike prices of coking and non-coking coal.

Market sources said that if the price hike did not happen, cement producers, in particular ACC, would face adverse impact given that the company uses 100 per cent domestic coal. However, towards close the counters seemed to get a reprieve, with some such as ACC, Shree Cement closing marginally up, while Gujarat Ambuja remained range-bound. Stating that the bounce back was surprising, dealers speculate it could have been driven by the perception that while Western India companies would be unable to increase prices during monsoon, North India could see a price hike. Since construction activity generally slackens during monsoon, demand and supply is generally sluggish during this period.

ACC ended the day at Rs 232.60 up 1.28 per cent with around 18.53 lakh shares traded, while Gujarat Ambuja ended at Rs 265.45 with around 7.48 lakh shares traded on the BSE.

Deeptha Rajkumar

More Stories on : Stock Markets | Ear to the ground

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

Stories in this Section
Sundaram Mutual plans `Star Fund'

MIPs in minus zone

Bulls prevail

Pharma stocks dip after CLSA downgrade

Gains on stake sale buzz

Zee continues upward movement

Outlook negative for BHEL, PNB

Markets recover despite hike in petro prices