The Hindu Business Line : SREI Infra Fin gains on infrastructure focus

THE counter of SREI Infrastructure Finance gained on Tuesday. The stock closed at Rs 59.50, up 9.27 per cent, on the BSE with 8.93 lakh shares being traded. It closed at Rs 59.60 on the NSE, up 8.96 per cent, with volumes of 18.63 lakh shares.

Dealers said the buying in the counter came on active interest of market players in constructions and infrastructure companies. In the last one month, there has been sharp movement in the stock prices of construction companies but the SREI stock had not shown any movement.

As SREI provides finance to infrastructure companies, its performance is directly linked to that of the construction companies. Post-Budget, FIIs have been showing interest in the stock, even as the Government has turned its focus on the infrastructure sector.

SSI propped up by new listing?

THE stock price of SSI has gained sharply in the last one week. The stock has gained more than 50 per cent during this period.

Dealers said the sudden spurt in the stock price is due to the listing of Scandent Solutions, the software company to which SSI sold its software business, on Wednesday.

The talk is that the interest in SSI has come as it holds 3.66 per cent (10.53 lakh shares) stake in Scandent. Dealers said Scandent is likely to list at around Rs 180-200, and further upside in the near future was a possibility.

Once Scandent gets listed, the valuation of SSI would also go up, feel dealers.

On Tuesday, the stock of SSI was locked in 20 per cent upper circuit. It closed at Rs 58.30 on the BSE with a volume of 13.15 lakh shares while it closed on the NSE at Rs 58.60 with a volume of 14.76 lakh shares.

Up, thanks to its stake

ANOTHER company whose stock price jumped sharply due to investment in another company is Bombay Burmah. The stock price of the company was locked in the 20 per cent upper circuit. It closed at Rs 168.20 on the BSE with a volume of 2.26 lakh shares and at Rs 167.05 on the NSE with a volume of 1.43 lakh shares.

Dealers said the rise in the stock price is due to its holding of around 5 per cent stake (19.21 lakh shares) in Bombay Dyeing.

Dealers said the stock price of Bombay Dyeing has jumped in the last one month and they expect the stock of Bombay Burmah to follow suit. Dealers said that some buyers who were bullish on Bombay Dyeing are buying into the shares of Bombay Burmah.

Virendra Verma

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