Stocks

Amid hectic trading, M&M, Castrol, 2 others go ex-bonus Thursday

Suresh P Iyengar Mumbai | Updated on January 09, 2018 Published on December 20, 2017

Notwithstanding the bull wave in the market, stocks of four leading companies — M&M, Balkrishna Industries, Castrol India and Vakrangee — witnessed hectic trading activity as they are set to go ex-bonus from Thursday.

M&M has been in the midst of action for the last one week after the company announced an across-the-board price increase of 3 per cent on all its vehicle offerings to pass on incremental costs.

On Wednesday, the stock touched a 52-week high of ₹1,571 before closing with a marginal gain at ₹1,556 as investors stepped in to book some profit. The stock had gained 12 per cent from ₹1,370 logged on December 6.

M&M had posted its highest ever second quarter export of 3,983 units this fiscal against 3,844 units logged in the same quarter last year. Tractor exports at 7,338 units in the first half was up 8 per cent compared to last year, it said in an investor presentation.

Balkrishna Industries, one of the largest automobile tyre and rubber product manufacturers, had hit its 52-week high of ₹2,571 on Monday. The stock has been on an upward march for the last one month and gained 39 per cent from its November 8 level of ₹1,798. On Wednesday, it was up 0.44 per cent to ₹2,506. The company is expected to gain from the surging demand for tyres and low rubber prices.

Price pressure

Castrol India, a leading automotive and industrial lubricant manufacturer, has been under pressure due to recent increase in crude oil prices. The stock has gained 6 per cent since it announced the bonus on November 7. Shares of the company, which is part of the BP Group (British Petroleum Group), were down 0.88 per cent at ₹419 on Wednesday.

Mumbai-based technology company Vakrangee, one of the largest single systems integrator of all key government projects, gained 42 per cent since the company announced that the board will meet to consider a bonus issue on November 2. Given the sharp run-up in prices, on Wednesday, the stock was down 0.15 per cent at ₹760 on profit-booking.

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Published on December 20, 2017
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