The Hindu Business Line : Tata Steel gains on performance hopes

TATA Steel counter has been witnessing a lot of market players' attention since last week. Hectic activity continued on Monday as well with almost one crore shares traded.

Dealers said the sustained interest is on market expectation of another strong third quarter performance from the steel major. Steel prices have remained firm and the company is understood to have paid high advance tax in the third quarter.

Several broking firms have started advising their clients to buy the share ahead of the quarterly results. FIIs, who have already bought the shares, continued to build on their holdings during the last few trading sessions.

On Monday, Tata Steel gained 4.19 per cent at Rs 374.05 on the BSE with volumes of 25.34 lakh shares; on the NSE, it closed at Rs 374.30, up 4.24 per cent, with volumes of 73.53 lakh shares.

Funds interest drives it up

SEVERAL institutional investors have started buying shares of commercial vehicle maker Ashok Leyland.

The interest in the stock is on expectation of good third quarter results. The company's second quarter performance was impacted due to a strike at its Hosur plant. The strike ended in the last week of October.

The talk is that the wage agreement between the management of the company and its workers is seen positive Ashok Leyland.

Another reason for the interest in the stock is that it has not moved in line with other automobile stocks. Now the view of the market players is that the stock is likely to move ahead of other auto companies' stock price.

On Monday, the stock price of the company gained 5.25 per cent at Rs 24.05 on the BSE with volumes of 36.71 lakh shares; on the NSE, it closed at Rs 24.05, up 5.02 per cent, with volumes of 72.59 lakh shares.

Stake sale talk at it

THE Tata Teleservices stock price gained sharply on Monday by rising almost 20 per cent with huge volumes.

On the BSE, the stock gained 19.46 per cent at Rs 31 with volumes of 28.55 lakh shares and on the NSE, it closed at Rs 30.95, up 19.73 per cent, with volumes of 65.45 lakh shares.

Dealers said the interest in the stock was fuelled by market talk of a stake sale in the company. However, the exact quantum of stake that could be sold was not known.

Company officials were also not available for comments.

Virendra Verma

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