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THE counter of India Glycols saw an increased buying on Thursday. Dealers said the buying was due to strong polymer prices in the current quarter and this is likely to help the company report good profits during the quarter. For the June quarter also, the company is likely to report good results.

Dealers said international polymer prices are firm and the prices of various polymers have gone up by Rs 1.5 per kg.

India Glycols manufactures mono-ethylene glycol (MEG), which is raw material for various polymers. Due to the rise in the price of polymers prices, MEG prices are also understood to have gone up in the last few days.

On expectation of good financial results for June quarter and firm MEG prices, the stock price of the company gained 7.33 per cent at Rs 88.55 on the BSE with volumes of 2.08 lakh shares.

Gains on number hopes

EVEN though the market is expecting huge subsidy to be borne by GAIL, the first quarter financial results of the company are expected to be better than the market expectation.

If the market talk is to be believed, the net profit of the company for the June quarter is expected to be around Rs 375-380 crore compared with the net profit of Rs 365 crore for the corresponding quarter of last year. June quarter results also include subsidy of around Rs 225 crore.

On these expectations, the stock price of the company gained 5.25 per cent at Rs 196.50 on the BSE with volumes of 10.07 lakh shares; on the NSE, it closed at Rs 196.65, up 5.44 per cent with volumes of 38.49 lakh shares.

Derived benefits

THE stock indices - mainly Nifty and Sensex - gained sharply in the last one-hour of trading on the last day of the expiry of July contracts. Nifty gained almost 28 points in the last 60 minutes mainly on back of short covering.

Another reason for the rise was that several market players pushed the stock price of key index stocks in order to have higher price of derivatives contracts on the expiry date. Settlement of derivatives contracts on every last Thursday of the month is based on the average price in the last 30 minutes of trading.

By doing this, traders who bought the derivatives contracts were able to make higher profits.

Virendra Verma

More Stories on : Stock Markets | Ear to the ground

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