Financial Daily from THE HINDU group of publications
Friday, Sep 23, 2005
Financial Daily from THE HINDU group of publications Friday, Sep 23, 2005 |
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Markets
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Stock Markets Columns - Ear to the ground FII limit hike drives it up
MAHINDRA Gesco, a real estate company, continued its uptrend on Thursday even as most stocks fell sharply. On Wednesday, the stock was up 20 per cent and on Thursday, it rose by another 5 per cent. On the BSE, it closed at Rs 254.65, up 5 per cent, with volumes of 11.51 lakh shares; on the NSE, it closed at Rs 260.05, up 6.84 per cent, with volumes of 11.73 lakh shares. Dealers said the rise in the stock was due to FIIs' limit being hiked to 30 per cent. The limit, which was hiked on Wednesday, led to FII as well as local investors buying. The talk is that FIIs bought the shares of Mahindra Gesco as it is one of the best-managed real estate listed companies. Moreover, the opening of real estate sector for FDI is also seen as positive as any leading international real estate company could take stake in it.
Trader trapped in circuit filters CIRCUIT filters turned havoc for most of the traders on Thursday. Every second stock traded on the BSE was locked in lower circuit with T and Z group stocks being the worst hit among them. A total of 1,314 stocks hit the lower circuit out of 2,597 stocks traded. Dealers said this happened as large number of traders had leveraged position in most of the T group stocks. Since they had to pay money, all came to sell at the same time leading to only sellers and no buyers. The talk is that most of these traders have not yet been able to sell their shares and further fall could be seen in these groups' shares in the next few days.
Index down on basket selling IF FIIs and mutual funds were net buyers on Wednesday, the same looks unlikely on Thursday. The talk is that there was index selling by some FIIs and some funds also took advantage of this. Most of the selling was through basket selling, where funds can sell stocks in the same proportion as their weightage in the index. But dealers said several FIIs sold the index as they went short on Wednesday in index futures. There were sell orders in several of the broking houses catering to FIIs and mutual funds, but a few had buy orders.
Virendra Verma
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