The Hindu Business Line : On dividend hopes

SOME market players are accumulating the shares of Balaji Telefilms over the last few days. Talk is that accumulation is mainly on expectation of huge dividend payout.

Dealers said the company is expected to announce a dividend of around Rs 15-16 per share. This works out to 15 per cent yield based on current market price. The company's board is scheduled to meet on October 15.

Dealers said the huge dividend payout is mainly to distribute cash lying in the company's balance sheet. This is being done before Rubert Murdoch's Star takes stake in the company.

On Tuesday, the stock price of the company closed at Rs 97.80, down 1.16 per cent, on the BSE with volumes of 1.86 lakh shares; on the NSE it closed at Rs 98.20, down 1.16 per cent with volume of 3.98 lakh shares.

Institutional interest seen

Another media company to have caught the eyes of investors is Adlabs.

Dealers said several institutional investors are believed to have been accumulating the shares of the company. This is on hopes that the company is likely to show good performance in the next few quarters.

Talk is that other than the film processing business, Adlabs multiplex business is growing steadily and in the next few quarters, it would be bigger than the company's main business of film processing.

Till now, the stock of the company was valued based on film processing business, but now this is likely to change with company being seen more as a multiplex company.

Interest in the stock is also seen as the stock price of the company, not in line with the overall market, gained very sharply in the last few weeks. On Tuesday, the stock price of Adlabs gained 3.38 per cent at Rs 107 on the BSE with volumes of 2.40 lakh shares; on the NSE, it closed at Rs 106.95, up 3.43 per cent, with volumes of 6.32 lakh shares.

Hedge funds spoil market rally

UPWARD move of the stock indices is being halted over the last couple of days.

Dealers said several hedge funds are actively selling shares of index stocks and this has led to fall in the last two days.

Talk is that most of the selling has been from an US-based broking firm. However, the exact amount of selling is not known.

But dealers said this selling might continue for a few more days as hedge funds in India are expected to lighten their positions as it has given them good returns in the last one and half-month.

Virendra Verma

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