The Hindu Business Line : Trent gains on fundamentals talk

THE stock of Tata group company Trent Ltd has been witnessing sustained market interest in the recent past. The interest has been attributed to pure fundamentals this time around vis-à-vis the usual rumours of a merger with a group company.

Brokers maintain that given that it is a relatively illiquid stock, sustained investor support has resulted in some sharp movement at this counter.

According to analysts, the fact that this appears to be the only available listed retail stock apart from Pantaloon (which has almost exhausted its FII limit), has added to the attraction. The company's new retail venture (50,000 sq ft) at Ahmedabad is said to have also propelled it from the mid-size to large-size retail segment.

However, there is a perception that valuations are a little stretched at these levels. The buzz about the company's new store at Ahmedabad is also being labelled as an initial knee-jerk reaction.

The stock ended the day weak at Rs 562.70 (BSE) and at Rs 560.55 (NSE) on Tuesday in line with the broad market trend.

Active on buyback buzz

Rumours of a buy-back/open offer spurred interest in the stock of Essar Steel, which ended the day in positive territory, amid huge volumes, on the bourses.

Brokers said that there is a growing perception in the market that in the long run, the company is a delisting candidate and as such promoters are looking to shore up their holding. Promoter holding in the company as of September 30, 2004 stands at around 56.61 per cent.

Company officials, however, denied any such move and said that it is in the process of restructuring and strengthening its balance sheet.

The stock hit a 52-week high of Rs 35.20 intra-day on the BSE on Tuesday. It closed at Rs 34.05, up 2.56 per cent, with 48 lakh shares traded on the BSE. On the NSE, the stock ended the day at Rs 33.95, up 1.95 per cent, with around 1.34 crores shares traded.

Sustained interest seen

The stock of housing finance major HDFC hit a new 52-week high at Rs 805 on the BSE on Tuesday. The counter, an FII favourite, has appreciated by more than 48 per cent over the last three months from around Rs 538-levels.

There has been some speculation in the market in the recent past, of a stake sale by the company. However, analysts maintain that it is unlikely that the company could be looking to place equity in the current scenario.

The stock ended at Rs 800.55, up 4.04 per cent, with around 2.31 lakh shares traded on the BSE.

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