Financial Daily from THE HINDU group of publications
Tuesday, Jun 21, 2005
Financial Daily from THE HINDU group of publications Tuesday, Jun 21, 2005 |
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Markets
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Stock Markets Columns - Ear to the ground Gains on mistaken identity
In a case of a mistaken identity, shares of Reliance Chemotex Industries made major gains. Market players bought shares of this textile company on the belief that it was part of the Reliance group. The stock price of the company gained 5.51 per cent at Rs 27.75 on the BSE with volumes of 39,668 shares. Dealers said this kind of situation happens when the mood in the market is very upbeat.
AVT Natural Products slides on growth concern THE stock of AVT Natural Products, a company into the business of contract farming of marigold, has been on a downward move over the last few trading sessions. It declined 29 per cent in the last one week. On Monday, the stock was down 9.63 per cent at Rs 198.90 on the BSE with volumes of 27,842 shares. Dealers said the market players have started offloading the shares on fears that the sharp growth shown by the company in the last fiscal would not be maintained in the current fiscal. The talk is that the huge growth for the company was mainly due to a big order it bagged last year and this kind of order would not be sustained in the current fiscal. Moreover, the stock price had run-up very fast and there were concerns among the market players over the valuation of the stock. Some players who had entered the stock at very low levels are understood to have been selling the stock.
IT attracts value buying APART from Reliance pack, another group that was to witness across-the-board buying was information technology. This was seen from the rise in the IT indices of the BSE and the NSE; while other sectoral indices closed lower on Monday, the BSE-IT Index gained 3.04 per cent, and the NSE CNX-IT 2.41 per cent. Dealers said there has been keen interest among market players for all kind of IT and software companies. This is mainly due to the good June quarter for most of the companies. Another factor for the interest in the sector is that most of the companies are comparatively undervalued as against other sectors. Dealers said several FIIs and mutual funds are seeing good investment opportunity in the sector and expect good returns for the next few quarters.
Virendra Verma
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