The Hindu Business Line : Sintex Industries up on de-merger plans

SINTEX Industries rose sharply on Wednesday; the stock gained 15.02 per cent at Rs 149.70 on the BSE with volumes of 4.19 lakh shares and on the NSE, jumped 16.02 per cent at Rs 151.40 with volumes of 5.02 lakh shares.

The rise in the stock price was on talk that the company's textile business would be hived-off into a separate company. Last year, the company had said it was examining the proposal of demerger of textile business into Bharat Vijay Mills or any other entity.

However, company officials were not available for comments on this development on Wednesday. Dealers said the de-merger of the company would help in unlocking the value of the textile and plastic business.

The good outlook for textile sector is the main factor for institutional investors buying shares of the company. Several institutional investors have picked up stake and they made some buying on Wednesday also.

Some big investors who have stake in the company include Fidelity and Warburg Pincus.

Bata India: Betting on retail valuation

SEVERAL institutional investors are buying the shares of Bata India. On Wednesday also some buying from them was seen.

Dealers said several foreign investors are buying the stock due to its various retail stores and its plans to develop real estate in Kolkata. Bata owns large number of retail stores across the country. Several investors are now looking at the company as a retail company and comparing it with other listed retail stocks. The new range of footwear, which have received good response, are seen as positive for the company.

On Wednesday, the stock rose 6.62 per cent at Rs 178.05 on the BSE with volumes of 10.35 lakh shares; on the NSE, it rose 4.81 per cent with volumes of 15.37 lakh shares.

Open interest shoots up in Jai Prakash Hydro

JAI Prakash Hyrdo Power is attracting lot of investors, especially in the derivatives segment. The open interest in the December futures contract of 1.41 crore shares is substantially higher; the open interest of November contracts, which expires on Thursday, is 42.65 lakh shares.

Dealers said some traders have started accumulating the stock in the derivatives segment. The talk is that a section of the traders has built large positions on expectation of some positive announcements soon.

However, the exact detail of it was not known. In the cash segment, the stock rose 2.33 per cent at Rs 32.95 on the BSE and 2.02 per cent at Rs 32.85 on the NSE.

Virendra Verma

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