Financial Daily from THE HINDU group of publications
Wednesday, Jul 21, 2004
Columns - Ear to the ground
Dealers said a leading FII was selling the shares of the company. The talk is that the selling by this FII is likely to continue.
Despite this, the stock price is on the rise. Dealers said this is due to select market players absorbing the entire quantity. These players are accumulating the shares ahead of the announcement of financial results on July 27.
The company is expected to announce good results in the first quarter due to firm prices for most of its petrochemicals products during the period. Another reason for good number hopes is strong profit by IPCL, also a Reliance group company and is into the same business.
On Tuesday, the stock price of RIL gained 1.15 per cent at Rs 428.35 on the BSE with volume of 43.75 lakh shares and on the NSE it closed at Rs 428.55, up 1.12 per cent, with volume of one crore shares.
IPO lure hits IT stocks
IT stocks came under selling pressure on Tuesday following the announcement by TCS of its IPO. Dealers said after the announcement of the price band by TCS, several market players are now planning to allocate funds to subscribe to the issue.
The talk is most of the funds are slowly reducing their holdings in IT stocks and the fall in most of the top-rung stocks on Tuesday was part of this plan.
Most of the fund managers and broking firms are optimistic about TCS and feel that the stock of the software major should be in the portfolios of every investor. On Tuesday, sell off was seen in stocks such as Infosys Technologies (down 2.12 per cent at Rs 1447.65 on BSE), Wipro (down 1.71 per cent at Rs 519.65), Satyam Computer (down 1.41 per cent at Rs 326.20) and HCL Technologies (down 1.67 per cent at Rs 298.10).
Skid on monsoon fears
MONSOON fear seems to be gaining momentum on auto stocks. After partial sell-off by institutional investors last week, further selling in auto stocks was seen Tuesday.
Dealers said there is some concern in the market that monsoon might affect the growth of the auto companies. In addition, the increased competition in the sector, especially in two-wheeler segment, is also concerning the market and the view is that that profit margins might fall in the next few quarters.
On Tuesday, the selling was seen in Bajaj Auto (down 2.52 per cent at Rs 832.10), Hero Honda (down 3.49 per cent at Rs 436), Tata Motors (down 1.51 per cent at Rs 401.50), Mahindra & Mahindra (down 1.26 per cent at Rs 459.05) and Maruti (down 1.29 per cent at Rs 420).
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