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PUBLIC sector Bharat Petroleum Corporation Ltd's stock has been attracting a lot of institutional buying. The interest in the counter is due to various reasons.

One factor for the institutional interest is the turnaround of its subsidiary Numaligarh Refinery and excellent financial performance of another subsidiary Kochi Refinery.

A leading foreign broking firm has put a strong buy on the counter due to the strong financial performance of its two subsidiaries. Moreover the interest in the counter is also due to the oil bonds and the receivables from the Government, which is equivalent to Rs 68 per share.

The talk in the market is that the consolidated financials (along with Kochi Refinery and Numaligarh Refinery) will be very good in the current financial year. In addition, the company is also self-sufficient in refining, which is being considered positive. Dealers said in case the strong financial performance of the company is continued in the current quarter, the stock is expected to be re-rated. Already several institutional players have again started buying the stock. Earlier the stock was off-loaded by various institutions on concern over the privatisation of the company. But now the accumulation is more on fundamentals rather on the privatisation.

On Wednesday, the stock closed at Rs 325.60, up 3.79 per cent with a volume of 6.32 lakh shares on the BSE and on the NSE it closed at Rs 326.90, up 4.08 per cent at Rs 326.90, up 4.08 per cent with a volume of 19.3 lakh shares.

Players pile up Ballarpur

BALLARPUR Industries, manufacturer of paper, is another commodity company stock that is being accumulated by the market players.

The talk is that the after the recent surge in the various commodities company stocks, the market players are looking at Ballarpur stock. Dealers said there was possibility of a hike in the prices of paper and this would be beneficial for the company.

Dealers said the paper industry was also coming out of the recession cycle in line with other commodities, but the stock price of the company was yet to see the positive impact of the turnaround in the industry.

On Wednesday, the stock gained 1.74 per cent at Rs 64.15 with a volume of 2.20 lakh shares on the BSE and on the NSE it closed at Rs 64, up 1.51 per cent with a volume of 4.2 lakh shares.

Virendra Verma

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