Financial Daily from THE HINDU group of publications
Wednesday, Oct 19, 2005
Financial Daily from THE HINDU group of publications Wednesday, Oct 19, 2005 |
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Markets
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Stock Markets Columns - Ear to the ground Tata Steel falls on profit concern
The stock fell 2.68 per cent at Rs 373.60 on the BSE with volumes of 17.95 lakh shares; on the NSE, it closed at Rs 374.85, down 2.47 per cent, with volumes of 34.08 lakh shares. Dealers said the fall in the stock price came on concern over the future profit growth for the company. The talk is that the international steel prices may fall in the next few months and this may affect companies in India also. Dealers said since Tata Steel is traders' fancy, the major selling is coming in this counter. There is some FII selling also in the counter.
Skids after stock split GUJARAT Flourochemicals was down sharply on Tuesday after the face value of the company's share is split from Rs 10 to Rs 2. Dealers said several market players have started selling the shares after the stock split. The talk is that several investors who had bought the shares at lower levels have started selling the stock. Moreover, some selling is seen after the company came out with the results. The results failed to meet the expectation of market players, even after the company showed growth in sales and profits in the September quarter. On Tuesday, the stock was down 7.16 per cent at Rs 345.35 on the BSE with volumes of 69,617 shares; on the NSE, it closed at Rs 349.9 5, down 6.43 per cent, with volumes of 95,563 shares.
Hedge funds resort to selling AFTER opening firm in the morning, stock indices fell sharply in the later part of the day. The BSE Sensex, which was up more than 100 points in early part of the day, closed 80 points lower. Dealers said the sharp dip was due to selling of index through basket trading, where one can sell shares in the same proportion as their weightage in the index. The talk is that most of this selling came from hedge funds. They are selling primarily due to depreciating rupee against the US dollar. This month, rupee has already depreciated by more than 2 per cent this month. Dealers said if the rupee continues to fall, further selling from hedge funds could be seen.
Virendra Verma
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