The Hindu Business Line : Sanghvi Movers betting on infrastructure boom

THE stock of Sanghvi Movers, a company into operations of cranes, was locked in the 10-per cent upper circuit on Tuesday. It closed at Rs 179.30 on the BSE with volumes of 68,091 shares. Dealers said the interest in the counter is due to the strong growth for infrastructure sector.

Market players feel that with large number of infrastructure projects coming, the growth of the company would be maintained.

Since the interest of institutional investors is there in several constructions and engineering companies, market players feel that similar interest to be seen in companies such as Sanghvi Movers and due to this they are buying the shares of the company.

Hyderabad Ind up on de-merger hopes

THE Hyderabad Industries stock was also locked in the upper circuit on Tuesday. The stock closed at Rs 187.15, up 2 per cent on the BSE with volumes of 1,657 shares; on the NSE, it closed at Rs 187.65, up 2 per cent, with volumes of 4,299 shares.

Dealers said select market players are upbeat in the counter after the company announced that it is de-merging its heavy engineering division. Several broking houses that are tracking the stock are upbeat over this development.

The main reason for this is that this division is making losses and was drag on the company's overall financial performance. The talk is that with this, the performance of the company would be substantially better in the current fiscal.

Auto stocks: Rising prices fuel downfall

Carmakers mainly Maruti Udyog and Tata Motors that were till sometime back favourite of market players are loosing the attractiveness. There has been continuous selling in these counters in the last few days.

Dealers said the selling is coming on concern of rise in crude prices, which could in turn slowdown the demand for cars. Another reason is rise in steel prices, which could dampen their profit margins. Till now, cars have shown a good demand from Indian consumers but now there is concern on the growth.

Several institutional investors are slowly off-loading their holdings in these counters. On Tuesday, the stock of Maruti was down by 4.23 per cent at Rs 402.35 on BSE and Tata Motors was down by 4.3 per cent at Rs 406.20.

Virendra Verma

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