Financial Daily from THE HINDU group of publications
Friday, Apr 01, 2005
Financial Daily from THE HINDU group of publications Friday, Apr 01, 2005 |
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Markets
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Stock Markets Columns - Ear to the ground Hanil Era Text: Hopes on ethanol fuel it
SHARES of Hanil Era Textiles have been in demand in the last few days. However, the accumulation of the stock is not on account of the growth prospects for the textile sector, but for the ethanol plant the company has set-up recently. The company had set up a 200-kilo liter per day ethanol plant and it is the largest ethanol manufacturer in the country. The talk is that accumulation is due to the huge growth prospects of this business for the company as ethanol can be mixed with petrol. Hanil Era has submitted a tender for Rs 300 crore for supplying ethanol to oil marketing companies. If the company is able to get the contract, it will come as a windfall gain, which has not being factored in the stock price of the company. On Thursday, the stock price of the company gained 8.41 per cent at Rs 28.35 on the BSE with volumes of 84,580 shares.
IT stocks in demand After a few days, IT stock witnessed sharp rise in their stock price again. The upward move in this sector was seen from rise of 3.69 per cent for the BSE-IT Index and 3.91 per cent gain in the CNX-IT Index. Most of the key stocks such as Infosys, Wipro, Satyam, TCS and others closed higher. Dealers said the interest in the IT stock has come just ahead of the announcement of January-March quarterly results. Most of the time the accumulation is seen ahead of their quarterly numbers announcement. IT companies results start coming from second week after every quarter. But the talk is that some serious players are also buying the stock as they feel that the rise in international oil prices would not affect this sector.
Not a serious recovery! EVEN though there was sharp rise in stock prices on Thursday, very few market players were impressed with the movement. Dealers said the upward movement should not be taken as serious recovery as it was the last day of derivatives expiry and also for the quarter. Most of the institutional investors were busy buying to keep the NAV of their funds high. Dealers said this a common practice at the end of each quarter. The sharp rise in the indices also came on short covering of futures positions on the last day of the settlement. The talk is that rise in the stock prices on Thursday was more of dressing up the portfolios and if the rise is continued for some more time then only one can say of recovery.
Virendra Verma
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