The Hindu Business Line : Nagarjuna Constructions riding on infrastructure boom

THE construction sector overall has got a major fillip with the announcement of allowing foreign direct investments. One of the stocks in the sector hogging the limelight now is Nagarjuna Constructions.

The stock has registered a strong run in the last few sessions on talk of strong order book positions. Market participants say that with the Government investment in infrastructure rolling off, Nagarjuna Construction is poised for some big projects.

The stock hit its 52-week high of Rs 601.35 on Monday. Though it slid along with the market on Tuesday, brokers attribute it to profit-taking by cautious investors. Their outlook on the company continues to be positive. The stock closed at Rs 555, down 2.95 per cent, on the BSE

Bonus to boost it?

THOUGH the Biocon stock has been losing sheen of late, market sources suggest that the counter could see some action soon. Interest in the stock in the market revolves around a possible announcement of bonus issue by the company.

Market participants are also speculating that the results announced by the company would beat street expectations.

The stock has been losing value all March, but operators say that potential buyers are waiting for the prices to bottom out. The stock lost Rs 19 on Tuesday to close at Rs 399.

Buoyed by `buy' tag

Deepak Fertilisers has been attracting attention following the `buy' recommendation by several brokerage firms. These research reports suggest that the company's chemical business is likely to expand and the fertiliser manufacturing business will be barely above 20 per cent.

The company is one of the largest producers of methanol in India; methanol is used across a range of industries including drugs, pharmaceuticals, paints and fertilisers.

Deepak Fertilisers is also said to be setting up another plant for the manufacture of a solvent used in many industries. This plant is being set up at a cost of over Rs. 200 crore, according to research reports.

The stock hit its 52-week high of Rs 70.50 on March 22. The stock, however, closed on Tuesday at Rs 58.15, down Rs 3.75, on a day the markets fell by over 2 per cent.

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