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EXPECTATIONS of good results has been spurring market interest in the TCS counter in the recent past. Brokers maintain that the company's performance will see a further re-rating of the stock. Valuations are expected to become more attractive than what seems otherwise.

Going forward, the market also appears to be awaiting the stocks inclusion in the Nifty given that it is number three in terms of market cap ranking. Additionally, rumours that the company may consider an overseas issue in March 2005 is acting as an incentive at the counter.

However, analysts do not seem convinced on this point. The reasoning being that it does not make sense to start work on another issue at this point in time. The stock ended at Rs 1,045.60 up 2.22 per cent with around 7.35 lakh shares traded on the BSE.

Bharat Forge driven by rights issue

THE company's rights issue having closed successfully, the stock of Bharat Forge Ltd is seeing renewed interest. Brokers said that FII buying at this counter has gone up as it is perceived as one of the best auto component sector plays.

Dealers said that volumes have been high at this counter on account of the rights issue. Analysts maintain that the company's order book continues to remain the key trigger at this counter. The volume jump, once the current orders are implemented — in particular the Chinese crankshaft order — is expected to be huge. The company's performance is said to be in line with market expectations. Sources said that the company should continue to retain market leadership as long as the CV segment continues to grow at 18-20 per cent.

Bharat Forge's exposure in the CV segment in the domestic market is very large. While there is a perception that valuations are expensive at these levels, the market is said to be looking beyond FY06. The stock ended at Rs 776.50 up 2.37 per cent with around 40,748 shares traded on the BSE.

ICICI Bank: Valuation at play

SUSTAINED buying interest has led to the stock of ICICI Bank garnering strength on the bourses. Brokers said that it is a valuation story at play here. A Singapore based FII is said to be mopping up shares at this counter. As on June 30, 2004, the Government of Singapore holds around 4.23 per cent equity of the company. According to analysts, the valuation this kind of a bank should command is at least two times book, hence the interest at this counter. The stock ended at Rs 288.75 up 3.57 per cent with around 3.45 lakh shares traded at the counter on the BSE.

Deeptha Rajkumar

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