The Hindu Business Line : ACC & Guj Amb Cement: Stake sale talk drives them

Dealers said this was mainly on market talk of a foreign cement major likely to take stake in ACC. Another talk was that Gujarat Ambuja, which holds slightly less than 15 per cent stake in ACC, might sell its stake.

However, neither ACC nor Gujarat Ambuja Cement officials were available for comments on this issue.

Several market players said this kind of talk keep floating in the market every year and this is nothing new. In the past too the stock price of these companies have gained on similar talk.

On Monday, ACC gained 3.89 per cent at Rs 358.30 on the BSE and Gujarat Ambuja Cement closed at Rs 435.40, up 2.14 per cent.

`Downgrade' hurts SAIL

At a time when most of the market players are bullish on the SAIL stock, a leading foreign broking firm has came out with a `sell' recommendation on the stock. This is at a time when the public sector company is likely to announce dividend payment after a gap of 15 years later this year.

The foreign broking firm has `downgraded' the stock on fears of rise in coking coal prices, a key raw material in manufacturing steel. This firm has said that the coking coal prices have jumped 100 per cent in the last seven months and due to this the profitability of the company would not be maintained in the next financial year.

Along with the rise in the coal price, the firm believes that steel price would fall by 10 per cent from the current level. The current profits would be maintained only if the steel price rises by 20 per cent, which the firm believes is unlikely to happen. Due to this there is some selling in the counter.

On Monday, the stock was down 2.14 per cent at Rs 57.05 on the BSE with volumes of 80.25 lakh shares; on the NSE, it closed at Rs 57.15, down 1.97 per cent, with volumes of 2.28 crore.

Stocks rebound on FII news

ONCE again 2.30 p.m. came as a turning point for the market on Monday. However, this time the stock prices increased.

Dealers said the recovery in the stock price came after talk of positive inflows by FIIs on Friday. This brought some strength in the market, leading to some buying and partial short covering.

In fact, after the closure of the market, FIIs official figure showed Rs 116 crore of net purchases in equity market for Friday's trade and even in the derivatives segment they were net buyers both in index futures and stock futures.

Virendra Verma

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