Financial Daily from THE HINDU group of publications
Saturday, Jun 11, 2005
Financial Daily from THE HINDU group of publications Saturday, Jun 11, 2005 |
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Markets
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Stock Markets Columns - Ear to the ground Chola Invest on `profit-taking' mode
THE stock of Cholamandalam Investment and Finance Company Ltd has been blazing the bourses for the last few trading sessions. The stock touched its 52-week high of Rs 154.95, but lost ground to close at Rs 143.85. Dealers say that brokers have advised clients to book profits on the stock and re-enter at lower levels, triggering the sell off on the stock. The stock lost Rs 5.25 on Friday. It has been inching up during the last month. It gained 34 per cent in the last month, on speculation that there may be a stake sale in the company. With Friday's high, however, analysts feel that the stock is getting overpriced, explaining the profit booking witnessed today.
Good run continues
THE stock of Carborundum Universal has been going up with market speculation that a group of large brokers is pushing it aggressively. The stock started at Rs 141 in the beginning of the month and has already breached the Rs 160 level. The stock closed at Rs 157.70 on Friday. The company had announced that the book closure for determining the recipients of the bonus issue would be from June 25-July 23. Carborundum had earlier announced a bonus issue of one share for every share owned. Dealers say that the operators who are picking up the stock are anticipating a further rise. On IPO concerns Markets are concerned about loss of domestic liquidity because of the spate of public issues that are expected to hit the market. Public offers of Provogue and Jindal Polyfilms are currently on. Several book building issues, including that of Yes Bank, would hit the market shortly. With concerns that the secondary market could be heating up, more money is likely to be diverted to primary issues, say dealers. Even if the markets register strong movement, this would certainly have an impact on volumes, they feel. According to market information available, mutual funds and foreign institutional investors may also defer secondary market activity to channelise money into primary markets.
Veena Venugopal
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