The Hindu Business Line : Polyplex: Firm PET price drives it up

THE Polyplex Corporation stock on Monday gained sharply; it closed at Rs 219.40 on the BSE with volumes of 2.46 lakh shares and on the NSE, at Rs 218.85, up 8.26 per cent, with volumes of 4.21 lakh shares.

Dealers said the sharp spurt in the price came on market talk that the international prices of polyesters films are likely to go up from mid-march. The talk is that the cue for this came from the announcement by multinational company DuPont, which announced last week that DuPont Teijin Films - US branded PET polyester films - will increase by a minimum of $0.08/lb. This increase is due to a continuing escalation in raw material, utility and transportation costs and the impact of strong demand across various market segments.

Dealers said Polyplex is an exporter of polyester films and the company might also hike the price in line with the international trend.

Gains on demand hopes

AUTOMOBILE body building company Automobile Corporation of Goa was locked in 10 per cent upper circuit on Monday. The stock closed at Rs 214.45 on the BSE with volumes of 41,373 shares.

Dealers said select market players, even at its new high level, are accumulating the stock.

The main reason for this is the strong demand for commercial vehicles. The company makes bus and truck bodies for automobiles manufactured by Tata Motors. The talk is that with Indian economy likely to grow at more than 7 per cent, the demand for commercial vehicles would be good and this would benefit the company, as Tata Motors is the biggest player in this segment.

Firm on growth prospects

ANOTHER company from the auto segment that has caught market attention is tractor maker Escorts.

Dealers said the interest in the stock has come after a long time. The interest in the stock can been seen from rise of 30 per cent in the stock price in the last one week.

Dealers said the interest has come on expectation of strong growth the company is likely to show from the tractors sales. Moreover, there are talks that the company is undergoing a restructuring which will bring down the cost of debt.

On these expectations, there is accumulation in the stock. On the BSE, Escorts closed at Rs 97.30, up 4.46 per cent, with volume of 21.95 lakh shares; on the NSE, it closed at Rs 97.35, up 4.34 per cent, with volumes of 47.69 lakh shares.

Virendra Verma

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