Financial Daily from THE HINDU group of publications
Tuesday, Oct 05, 2004
Financial Daily from THE HINDU group of publications Tuesday, Oct 05, 2004 |
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Markets
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Stock Markets Columns - Ear to the ground Arvind Mills gains on fashion bait
DENIM major Arvind Mills has been attracting lot of buying interest over the last few days. Dealers said the stock has become one of the hot stocks among FIIs. Recently several foreign broking firms turned bullish on the counter. This is due to fashion garment sales to become a key margin driver for Arvind which is expected to grow threefold and account for around 20 per cent of its sales by 2007. Currently, fashion garment accounts for seven per cent of its sales. Talk is that Arvind Mills will leverage its existing relationships with major buyers such as Gap, Levis, JC Penney, Tommy Hilfiger and other international brands to drive up garment sales and margins. In addition, debt, power-cost savings and the recovery underway in the denim cycle are also expected to drive the growth of the company by over 30 per cent in the next three years, feel market players. On Monday, the stock gained 4.83 per cent at Rs 84.65 on the BSE with volumes of 16.52 lakh shares; on the NSE, it closed at Rs 84.65, up 4.75 per cent, with volumes of 51.56 lakh shares.
Active buying again COPPER major Sterlite Industries has again caught the interest of market players after the closure of its rights issue last month. Dealers said that only a few investors had applied for rights issue. There is talk that these players had deliberately kept the stock price at lower levels so that they could apply for more shares in the rights issue at Rs 550. Now, these players have again started pushing up the stock price as the company would show robust growth in the next few quarters. On Monday, Sterlite gained 6.02 per cent at Rs 648.50 on the BSE with volumes of 1.45 lakh shares; on the NSE, it closed at Rs 650, up 6.56 per cent, with volumes of 1.33 lakh shares.
Back to biggies ON a day when there was strong buying in large cap stocks most of the mid- and small-cap stocks remained weak. However, this was nothing to do with the BSE and the NSE moving large number of stocks to trade-to-trade segment from October 7. Talk is that several of the traders who had built large positions in smaller companies have shifted to large cap stocks such as ONGC, IOC, GAIL, TCS, Infosys and others. The reason for the shift is that the risk associated with mid- and small-cap stocks is higher. These traders made good returns of 50-100 per cent in the last few weeks and they feel that such returns are not possible this month.
Virendra Verma
More Stories on : Stock Markets | Ear to the ground
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