The Hindu Business Line : Arvind Mills betting on denim

THE stock of Arvind Mills touched its 52-week high on Tuesday. The stock, which opened at Rs 137.50 on the BSE and rose to Rs 141 intra-day, closed at Rs 139.85, gaining 3.25 per cent over the previous day's close.

Dealers say the interest in the stock is on account of denim cycle.

Denim demand globally is on the rise and Arvind Mills is one of the largest players in the country. Its sales, both in the domestic as well as the international market, are expected to show significant growth, according to market participants.

They also say that it is important to analyse where the company's sales are coming from globally and whether there would be any pressure on margins.

The stock has been buzzing around for the last couple of sessions. However, dealers also advice caution as the stock is prone to very high volatility.

Karnataka Bank up on dividend hopes

THE stock of Karnataka Bank has been attracting a lot of market interest. The bank is expected to announce its results on May 28.

Dealers say that market speculation is very strong that the bank might also announce a dividend along with the results.

The stock has been buzzing since the announcement of the banking reforms by the Finance Minister earlier this month. Market participants see the bank as a prime target for acquisition and some investors are increasing their exposure into the stock on this anticipation, according to dealers.

The stock closed with a marginal gain at Rs 80.50 on Tuesday on the BSE. Overall, it appreciated by over 16 per cent in the last month.

Thomas Cook down on margin pressure

THE stock of travel company Thomas Cook continues to slide down on bearish sentiment. This is regardless of the fact that the company has a strong order book for the current quarter, despite the disappointing results announced for the previous quarter.

Dealers say the perception about the stock is that even if the company announces strong results for the current quarter, it may not be sustainable in the medium term.

Analysts say that with price cuts and cheaper air tickets being available, margins would continue to be under pressure. Also, the travel trade has not entirely rebounded after the tsunami.

Despite the fact that travel bookings are high for the current quarter because of summer holidays, investors want to wait and watch on this stock. It has closed at Rs 431.90, down 1.85 per cent.

Veena Venugopal

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