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Jayanta Mallick

VASHISTI Detergent on Monday witnessed surge in value and volume as investors rushed to buy the stock ahead of the company's merger with Hindusthan Lever. The stock closed up 3.59 per cent at Rs 18.75, the day's high on the BSE with a traded quantity of 85,159 shares on the exchange.

Dealers said that as HLL finished the day at Rs 194.35, a proxy play in HLL through buying Vashisti stocks even at Monday's peak price left a room for profit. The amalgamation ratio of 10:1 means that 10 shares of Vashisti at Rs 187.50 would fetch a share of HLL, currently valued at Rs 194.35.

GIC Housing gains on value buying

GIC Housing Finance saw an arrest in its downward price direction on value buying by a group of investors. The counter has seen a loss of about 7 per cent in the last one week. On Monday, it closed at Rs 51.15 on the BSE, while the forthcoming 1:1 rights issue price range has been fixed at Rs 37 to Rs 42.

According to market sources, the fact that the stock saw emergence of resistance to price slide indicates value opportunity foreseen by some investors.

The stock's low P/E ratio is conceived to provide relative safety compared to other housing finance stocks, market sources said.

Betting on subsidiary strength

RPG Cables, which is reducing its losses in an improved favourable market condition for power cables this fiscal through various cost cut measures including pruning of its staff strength and conversion of fixed deposits into equity, is also drawing smart investors' interest for its subsidiary, KTL Industries Finance Co.

According to market sources, unlisted KTL has substantial investments in the group's retail venture - Spencer. "This has undiscovered value potential", said a fund manager.

The stock, after touching Rs 41 on Monday closed at Rs 39.65, with a marginal loss. However, the counter has seen an appreciation of 12.32 per cent in the last one month.

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