The Hindu Business Line : LIC Housing Finance buoyed by rate hikes

SCRIPS of housing finance companies have seen strong rallies recently. LIC Housing Finance rose by Rs 19.20 on Tuesday at the NSE. GIC Housing Finance has also appreciated by over 5 per cent in Tuesday's trade. This scrip has appreciated by 24 per cent since the beginning of the month, while that of LIC Housing has posted over 21 per cent.

Several brokerages have put `buy' orders on the GIC scrip. The target price estimated in these reports is higher than the current levels. Analysts see increased revenues from the 25-50 basis point rise on floating interest rates that housing loan companies have effected in the last few months.

Gaining on bonus issue talk

SHARES of Cadila Healthcare have been moving up consistently over the last few sessions. Brokers speculate that the movement is because the market expects the company to make an announcement of a bonus issue.

The scrip touched an intra-day high of Rs 520.70 on the BSE, before closing trade on Tuesday at Rs 512.75. Over 300 trades valued at Rs 51.78 lakh were registered on the BSE.

On the NSE, the scrip closed at Rs 513.85. Over 17,300 shares worth Rs 89.33 lakh were traded during the day.

Foreign institutional investors also continue to favour the scrip. FIIs hold 10.73 per cent of the company's shares now.

Volumes up on block deal buzz

INTEREST in Nicholas Piramal is picking up. Though the price of the stock has been largely rangebound, volumes have been on an uptrend. Brokers say that there is a likelihood of a bulk deal being announced shortly. One of the larger FIIs is speculated to be working on acquiring the shares of the company through a secondary market bulk deal.

The share closed at Rs 264.75 on Tuesday. Net turnover of the stock on the BSE has zoomed from Rs 1.71 crore on Friday to Rs 4.4 crore on Tuesday.

Veena Venugopal

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