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Jayanta Mallick

Kolkata, Sept.25 JP Hydro stock, which is traded also on the derivative segment, today shot up 27 per cent in the cash market with huge volumes on the BSE and NSE. The open interest in the near-month stock futures contracts, scheduled for expiry on Thursday, shot up by 61 per cent and in October contract by 81 per cent. The closing prices for both the months carried premiums over the cash market price.

According to analysts, institutional and HNI interest in the stock was mainly behind the stock’s price movements. According to Mr Ajit Day of Dayco Securities, institutional investors, particularly FIIs, showed mopped up non-oil energy stocks in the context of the high global crude price trends. “Overseas investors were active in the JP Hydro stock as part of their overall strategy picking up undervalued energy players”, he added.

According to an overseas fund manager, the stock was, attracting strong speculative interest from the local players too. Dealers also confirmed that absence of circuit in the cash market also helped buying or short covering. NSE, however, on Thursday announced that the counter has reached the market wide limit of 95 per cent in the derivatives trading. Hence, further trading would not occur until the positions come down.

Around eight crore shares changed hands on the NSE and around 3.7 crore shares on the BSE cash segments as the stock finished at Rs 81.3 on the NSE and Rs 81.15 on the BSE. The counter finished at Rs 81.9 for September futures contracts and at Rs 82.4 for the October contracts with open interest over Rs 2.4 crore and Rs 1.3 crore respectively.

The company board at its meeting held on August 27, 2007, declared an interim dividend of Rs 0.75 per share (7.5 per cent) absorbing a sum of Rs 36.83 crore (excluding dividend distribution tax of Rs 6.26 crore), for the financial year 2007-08.

Interestingly, till June 30, institutional investment in the stock was restricted to LIC only, which had 1.89 per cent stake. Uno Metals and AKG Finvest, both Kolkata-based investment outfits, were the other investors with stake of over one per cent. While for the former had 2.25 per cent stake, the latter’s holding was placed at 2.18 per cent.

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