The Hindu Business Line : Mid-cap constructions to cool off?

Though mid-cap construction companies continue to ride on the ambitious infrastructure announcements made by the Finance Minister in Budget 2006, analysts are of the opinion that valuations in the sector are getting expensive.

Several construction stocks hit their 52-week highs but expectations are that activity will be cooling off in the next few trading sessions.

IVRCL touched its 52-week high of Rs 1,161 before closing at Rs 1,135.30 on the BSE.

Unitech Ltd also had a good run at the bourses, touching 52-week high of Rs 1,953.45. It closed at Rs 1,901.81.

However, Gammon India is the exception to the analysts' view with several brokerages asking clients to buy the stock at current levels.

The stock is trading at Rs 558.80, a gain of Rs 4.40 from Thursday.

Nicholas up on acquisition talk

The market is buzz with speculation that Nicholas Piramal is close to announcing a major acquisition.

According to dealers, the pharmaceutical company is acquiring majority stake in a Korean drug maker.

The acquisition is expected to boost Nicholas Piramal's technical capabilities, said a dealer.

The stock moved up close to four per cent on the back of this speculation. It touched an intra-day high of Rs 254, before closing at Rs 251.40.

Overall, the stock gained close to seven per cent in the last 20 days.

Veena Venugopal

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