The Hindu Business Line : Cross holdings help them

Brokers said that it is a valuation story at play. The company's stock is also said to have come in for sustained support on account of it's cross holding with various Birla companies.

Universal Cables has a 29.15-per cent stake in Vindhya Telelinks and a 13-per cent stake in Birla Ericsson as on end June 2004.

Universal Cables ended at Rs 36.75, up 9.87 per cent, with around 2.85 lakh shares traded on the BSE; on the NSE, the stock closed at Rs 37.25, up 10.04 per cent, with around 6.7 lakh shares traded.

A similar argument is said to hold true for Vindhya Telelinks, which has an 8.29-per cent stake in Birla Corporation and a 13.33-per cent stake in Birla Ericsson as on end June 2004.

Vindhya Telelinks makes jelly filled telecom cables.

The stock, which hit a 52-week high intra-day, ended at higher circuit level at Rs 67.70, up 9.9 per cent, with around 2.9 lakh share traded on the BSE.

Mastek gains on order talk

RUMOURS of a huge export order in the pipeline coupled with a perception that the company is likely to turn in a good performance over the next two quarter have been driving interest in Mastek.

The stock ended at Rs 352.65, up 5.19 per cent, with around 2.46 lakh shares traded on the BSE. On the NSE, the stock ended at Rs 352.60, up 4.96 per cent, with around 7.10 lakh shares traded.

Brokers said that if one were to look at annualised earnings, the stock is attractively valued at these levels. This apart, the counter is said to have underperformed on the bourses vis-à-vis other software counters.

PSUs up on divestment move

The Gujarat Government decision to restructure 12 PSUs fuelled interest in counters such as GNFC, GMDC and GSFC. Brokers said that fund support at these counters have been on the rise in the recent past even as rumours of restructuring were doing the rounds.

The decision to privatise is being viewed very positively by the market.

Dealers maintain that post announcement, retail participants and valuation players jumped onto the bandwagon, to support the counter.

GSFC ended the day at Rs 79.15, up 13.15 per cent, with around 18.30 lakh shares traded on the BSE.

GMDC closed at Rs 263.30, up 7.56 per cent, with around 2.37 lakh shares traded while GNFC ended at Rs 59, up 8.66 per cent, with around 19.79 lakh shares traded on the BSE.

Deeptha Rajkumar

More Stories on : Stock Markets | Ear to the ground

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