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THE counter of mono-ethylene glycol (MEG) maker India Glycol has been witnessing increased buying over the last few days.

Dealers said the interest in the counter is coming from institutional investors due to the increase in international MEG prices, which have crossed over $1000 per tonne; this month the price has gone up 6 per cent.

Major beneficiary of this would be India Glycol. The other company to gain is Reliance Industries. On Friday, the stock price of the India Glycol gained 3.79 per cent at Rs 105.40 on the BSE with volumes of 1.87 lakh shares.

Downgrade syndrome

RANBAXY Laboratories stock came under heavy selling pressure on Friday. The stock price of the company was down 2.04 per cent at Rs 957.35 on the BSE with volumes of 1.43 lakh shares and at Rs 958.65, down 2.08 per cent, with volumes of 4.51 lakh shares on the NSE.

Dealers said the fall in the stock price was due a leading European broking firm downgrading the stock to `under performer' on Friday.

The downgrade by the firm is due to lull period for Ranbaxy in the next 12-15 months and the absence of significant product launches.

Ranbaxy's brand business, which has long-term importance, has been slow in picking up feels the firm.

Due to this concern the firm has cut EPS estimates by 4 per cent and 8 per cent for 04 and 05 respectively.

On infrastructural strength

CEMENT companies' shares are being purchased by several institutional investors. Dealers said interest in cement stocks has emerged due to the strong growth potential in the infrastructure sector in the next few years.

Several broking firms have turned bullish on the sector. Some of the stocks that are being recommended include Grasim and ACC. The firms are recommending even mid-cap cement companies shares.

Other than the demand, the additional supply for cement is also expected to slow and this would keep the cement price firm over the next year, dealers said.

Some of the stocks bought on Friday included Grasim (up 2.8 per cent at Rs 1035.90), ACC (up 2.40 per cent at Rs 262.50), Birla Corp (up 9.25 per cent at Rs 106.85), Gujarat Ambuja Cement (up 3.94 per cent at Rs 307.55) and Mangalam Cement (up 5.57 per cent at Rs 45.45).

Virendra Verma

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