The Hindu Business Line : Asian Paints attracts block deals

ASIAN Paints attracted a number of block deals on both the BSE and the NSE involving around 7 lakh shares at an average of Rs 505 a share. The stock closed at Rs 505.05 on the BSE, with a gain of 2.27 per cent.

The total traded volume in the counter on both the exchanges crossed 10 lakh shares.

It is understood that institutional buying was behind the surge in traded volumes, over 10 times its fortnightly average.

According to market sources, the prospect of better profits on the back of higher demand, particularly decorative paints, has attracted a section of investors to the industry leader.

According to industry sources, margins are expected to be slightly higher this fiscal over the previous financial year. On the input cost front, vegetable oil-based solvents and titanium dioxide have ruled lower. But prices of mineral oil based inputs such as zylene, styrene and turpentine have gone up.

"On balance, the pressure on margins are little less than last fiscal", an industry source confirmed.

An increase in sale prices of products earlier this fiscal has helped the companies to retain better margins.

But indication of much higher sales is clear. This in turn enhances the chances of greater profitability. The current festive season augurs well for the additional demand from the housing sector.

"The monsoon season this year did not see a slump in demand like other years for the decorative paints," said an official of another paint company.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Fund houses line up slew of FMP schemes

SSC&B Lintas bags Taurus MF account

Asian Paints attracts block deals

Sesa Goa firm on hopes of favourable price revision

Temasek picks stake in Medreich

Volatile movement

Stocks of cos owning real estate in Mumbai fall

Offloading by biggies in SRF counter

Benchmarks end flat on volatile day