The Hindu Business Line : Up on global price hike

OPTICAL fibre cable companies shares are being bought by market players in the last few days. Dealers said the interest in these stocks is due to the rise in optical fibre cables price in international market.

Market buzz is that the price has increased from $9 to around $12 per kilometre in the last one month. Dealers said with this rise most of the cable manufacturing companies will start making profits in the current quarter.

Over the last few quarters most of the companies in India have suffered loss due to depressed prices.

Based on this, the stocks of companies in this segment were bought by several market players on Thursday.

Stocks bought included, Sterlite Optical (up 0.30 per cent at Rs 55.30 on BSE), Aksh Opticals (up 8.39 per cent at Rs 18.99), Birla Ericsson (up 8.39 per cent at Rs 14.62) and Vindhya Telelink (up 1.82 per cent at Rs 33.60).

Demerger unlocking value

EVEREADY Industries shares were bought by market players on Thursday.

Dealers said the interest in the stock is due to the unlocking of value of company following the demerger of the company's tea and battery business. The company has already announced the demerger.

Market players now have started purchasing the shares as they feel that the actual demerger is likely to happen soon. On these expectations, shares of the company were bought on Thursday.

The stock of closed at Rs 36.60, up 13.14 per cent on the BSE, with volumes of 2.85 lakh shares and on the NSE it closed at Rs 36.65, up 13.29 per cent with volume of 5.06 lakh shares.

Gains on FII buying

THE counter of IT major Wipro gained sharply on Thursday. The stock price of the company gained 6.23 per cent at Rs 564.45 on the BSE with a volume of 10.39 lakh shares and on the NSE it closed at Rs 564.70, up 6.24 per cent with volume of 29.70 lakh shares.

Dealers said the active buying was mainly from some FIIs after a leading European broking firm put a buy on the stock on Thursday. This firm is very bullish on the IT sector and the Wipro stock after the first quarter numbers were out.

The rise in the stock price is also on talk that some of the top management officials are selling the shares in order to increase liquidity of the stock. There has been demand from institutional investors that promoters dilute their stake.

Virendra Verma

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