The Hindu Business Line : FIIs' selling seen in HDFC

The talk is that these FIIs are reducing their exposure in the company. One of the reasons for this is expected rise in interest rates, which could affect the profit margins in future.

Moreover, the increased competition within the housing finance business is also leading most of the companies including HDFC not raising the interest rates, which is also a concern for the market players. Over the last two days, the stock price of the company is down by over 5 per cent on these concerns.

On Friday, the stock declined 3.72 per cent at Rs 630.10 on the BSE with volumes of 1.50 lakh shares; on the NSE, it closed at Rs 631, down 3.60 per cent, with volumes of 6.55 lakh shares.

Shedding on oil price concern

THE stocks of two-wheeler companies on Friday saw selling from various investors.

Dealers said that there is a bit concern among the investors over the future growth of two-wheeler companies due to the rise in oil prices.

Two-wheeler demand is elastic to oil price as most of the purchases are made by individuals for personal purpose. The talk is that in case the demand slows down for automobiles, two-wheeler segment would be the first to be affected.

On these concerns there was across-the-board selling in most of the two-wheeler companies. The list included LML, Bajaj Auto, Hero Honda, TVS Motor and Kinetic Motors.

The two major players Bajaj Auto and Heron Honda were among the worst hit. Bajaj Auto stock was down by 2.38 per cent at Rs 988.60 on the BSE while the Hero Honda stock fell 2.08 per cent at Rs 417.

Gains on expansion plans

COUNTER of small pharma company Natural Capsules, engaged in manufacturing gelatin and vegetarian capsules, saw rise in the price along with volumes on Friday.

The stock gained 10.56 per cent at Rs 33.50 on the BSE with volumes of 75,446 shares.

Dealers said the rise in the stock is due to the company's new plant at Pondicherry starting commercial production from this month.

With the plant going on stream, this financial year and next is expected to show good growth. The bullish sentiment towards pharma sector in general is also attracting interest of investors in the counter.

Virendra Verma

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