The Hindu Business Line : Offloading by biggies in SRF counter

SRF Ltd witnessed heavy selling on Monday. The stock fell 6.49 per cent to Rs 285.20 on the BSE with volumes of 14.03 lakh shares; on the NSE, it closed at Rs 285.40, down 6.63 per cent, with volumes of 47.96 lakh shares.

Dealers said the fall in the stock came after some big players off-loaded their positions in the counter. The talk is that most of these positions were off-loaded first in the derivatives segment, which impacted the price on cash segment.

Dealers said traders who had entered the stock between Rs 150-200 levels a few months ago were selling. The talk is that most of the positive developments in the stock have already been discounted and the impact of carbon credits has also been discounted to a certain level.

Well constructed

AFTER opening weak, the stock prices of some construction companies jumped and closed with major gains. The stocks in this list include Nagarjuna Construction (up 5.81 per cent at Rs 221.30 on the BSE), Gammon India (up 4.92 per cent at Rs 361.45) and Era Constructions (8.79 per cent at Rs 129.95).

Dealers said the rebound in the stock price of these companies happened on value buying. The talk is that most of these stocks are still attractively valued and some of the local mutual funds investing in mid- and small-cap stocks are buying these shares.

Moreover, strong players, who are unlikely to sell them in the short-term, hold most of the stocks of these companies.

Recovers on bottom fishing

THE intra-day volatility on Monday and the stock indices closing almost flat are seen positive by traders in the short-term.

Dealers said the intra-day volatility, which saw Sensex up and down by 50 points, was due to active buying and selling. Most of the selling by short-term traders seems to be over.

The talk is that in the last one hour of trading a leading domestic broking firm sold large amount of shares bought earlier through margin trading.

Traders expect that fresh selling is unlikely to come this week and stock prices could bounce back. Some bottom fishing in mid- and small-cap stocks was also seen. Moreover, a leading foreign broking firm is holding a road show in Japan this week with top companies from India. The talk is that after this road show is over around half-billion dollars of FIIs' money is likely to come to India.

Virendra Verma

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