The Hindu Business Line : Bongaigaon Refinery up on result, dividend hopes

MARKET players have been accumulating the shares of Bongaigaon Refinery ahead of the company's second quarter results. Dealers said this is due to the expectation of good results from the company. The company's board is expected to meet on October 29 to take up second quarter results.

The talk is that despite the rise in international crude prices, the refinery margins of the company would be good. Moreover, the interest in the market has come due to the good results announced by Chennai Petroleum on Tuesday.

Another reason for the interest in the stock is expectation of interim dividend. The talk is that the company is likely to announce a dividend of around Rs 4 per share (40 per cent). The stock gained 3.6 per cent at Rs 87.75 on the BSE with volumes of 13.76 lakh shares; on the NSE, it closed at Rs 87.90, up 3.9 per cent, with volumes of 35.40 lakh shares.

Firm on number hopes

THE counter of steel company Mahindra Ugine Steel Company, part of Mahindra group, has been attracting a lot of market interest in the last few days. The talk is that some mutual funds have also bought the shares of the company in the last few days. The interest is mainly on expectation of good second quarter results.

The talk is that the financial performance reported by company in the first quarter is likely to be maintained in the second quarter. In the first quarter, it reported a net profit of Rs 6.72 crore on revenues of Rs 128.3 crore whereas its net profit for the financial year 2003-04 was Rs 6.1 crore on revenues of Rs 412.51 crore.

On Tuesday, the stock gained 5.36 per cent at Rs 46.20 on BSE with volume of 1.53 lakh shares and on NSE it closed at Rs 45.65, up 3.75 per cent with volume of 1.91 lakh shares.

UK-based funds lift Nifty

The benchmarks - the NSE's S&P CNX Nifty and the BSE Sensex - bounced sharply in the last one hour of trading. Dealers said the rise was due to the active buying in Nifty index, which increased from 1790 to 1813.15, a rise of 23.15 points in last one hour. It closed the day with a gain of 22.4 points over the previous close.

Dealers said several London-based FIIs started buying Nifty index after the international crude price fell sharply there. Another reason for the sharp rise in the market that several players who had gone short on Nifty futures started covering their position due to rise in the index.

Virendra Verma

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