The Hindu Business Line : Birla Corp gains on active buying

AFTER witnessing sharp fall in the last few weeks, the counter of Birla Corporation gained sharply on Friday. Volume in the counter also increased sharply. The stock gained 11.24 per cent at Rs 85.60 on BSE, with volume of 2.90 lakh shares, and on the NSE it closed at Rs 85.80, up 11.34 per cent, with volume of 5.58 lakh shares.

Dealers said the rise in the stock price was due to active buying by a leading domestic broking firm. Earlier, there was heavy selling in the counter on fears of this broking firm facing liquidity problem. Moreover, the selling by most of the investors in the counter is over. Another reason for the rise in the stock price was that cement prices remained firm even in June. Normally, cement prices dip during this time due to the monsoons.

Results not a deterrent

THE counter of Videsh Sanchar Nigam Ltd (VSNL) gained for the second day in a row, despite fall in profits in 2003-04. The company reported net profit fall of 54 per cent in March 2004 quarter compared to the corresponding quarter of previous year. It also reduced the dividend payout.

The stock price of the company gained 6.66 per cent at Rs 155.40 on BSE with volume of 1.50 lakh shares, and, on NSE, it closed at Rs 155.50, up 6.98 per cent at 3.31 lakh shares. If the market talk is to be believed, there is active buying in the counter despite the knowledge that net profits are likely to dip in the current fiscal.

The buzz is that there could be a major change in the business profile of VSNL. Market players also do not rule out an alliance with Tata's other telecom ventures and this is leading to active buying interest in the counter.

Jacked up on rig charges

THE counter of oil drilling company Aban Loyd Chiles Offshores is witnessing increased interest from market players.

Dealers said there is buying interest in the counter from select market players. If the market buzz is to be believed, a leading foreign broking firm is advising its clients to buy the shares of the company. The reason for this is the increase in the rig charges from $49,000 per day to $60,000 per day.

The company owns oil rigs and it drills oil for ONGC. Due to the rise in the rig charges, the company's EPS is likely to be Rs 85 to Rs 90 in the current fiscal. On Friday, the stock price increased 3.54 per cent at Rs 597 on the BSE with volume of 5653 shares, and on the NSE, it closed at Rs 602.55, up 4.61 per cent, with volume of 1.10 lakh shares.

Virendra Verma

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