The Hindu Business Line : NRC jumps on property sale talk

NRC Ltd, manufacturer of nylon tyre cord and rayon, was in the limelight on Monday. The stock gained 12.08 per cent at Rs 45 on the BSE with volumes 15.46 lakh shares; on the NSE, it closed at Rs 45.20, up 12.44 per cent, with volumes of 19.23 lakh shares.

Dealers said interest in the stock was on talk that the company has sold its real estate in Kalyan (near Mumbai). The value of the transaction is around Rs 125 crore, dealers said. However, market talk could not be confirmed.

Dealers said the sale of the property would bring in huge cash, which could be used by the company for its on-going business. Moreover, the cash would also help the company the much-needed cushion in uncertain business environment, feel dealers.

Gains on firm prices

WITH international caustic soda prices remaining firm, several market players have started accumulating the shares of Gujarat Alkalies and Chemicals. The talk is that Gujarat Alkalies is a major producer of this chemical and would be the major beneficiary of price rise.

Moreover, chlorine - the by-product in manufacturing in caustic soda - is also ruling firm. Dealers said the upward trend in caustic soda prices is due to firm international prices and an improvement in the domestic demand-supply balance. With supply constraints in the Middle East, international prices are expected to remain firm over the next few months.

The talk is that currently market players have started buying the stock of Gujarat Alkalies but the buying in other caustic soda makers will also come.

On Monday, the stock price of Gujarat Alkalies gained 4.07 per cent at Rs 127.85 on the BSE with volumes of 1.06 lakh shares; on the NSE, it closed at Rs 128.10, up 4.19 per cent, with volumes of 1.99 lakh shares.

Skid on petro price hike fear

WITH international oil prices ruling firm and the Government likely to allow oil companies to raise various petroleum products prices, market players have turned cautious on auto stocks.

Dealers said media reports of hike in petrol prices by Rs 5 per litre and diesel by Rs 2 would act as deterrent for automobile demand. The impact would be mainly felt by players in commercial and passenger car segment.

On these fears, there was across-the-board selling in most of the auto stocks on Monday. This was also seen from the fall in the BSE Auto index, which was down by 1.72 per cent - the highest fall among all the sectoral indices.

The stocks that fell on Monday included Maruti (down 4.37 per cent at Rs 428.45 on BSE), Tata Motors (2.35 per cent at Rs 450.35), Bajaj Auto (1.71 per cent at Rs 1063), Hero Honda (0.8 per cent at Rs 534.70) and Ashok Leyland (1.35 per cent at Rs 21.95).

Virendra Verma

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