Financial Daily from THE HINDU group of publications
Thursday, Dec 11, 2003
Columns - Ear to the ground
Gujarat Ambuja: Price hike hopes keep them high
CEMENT stocks were in the limelight on Wednesday, attracting both the domestic and foreign institutional buyers. According to the market grapevine, cement producers are planning a Rs 10 per bag price hike in Gujarat next week followed by a Rs 5 per bag increase by the end of the month. While it is normal for cement makers to raise prices in the post-monsoon quarter, recent reports indicated that producers might resort to a partial shutdown to prop up prices.
The stock of Gujarat Ambuja Cement closed 1.5 per cent up at Rs 290.90 with a total volume of about 23 lakh shares traded on the BSE and the NSE. A large US-based FII is reported to have picked up about a million shares of the company over the past 10 days.
Grasim Industries ended at Rs 907.60, up one per cent with about 94,061 shares traded. ACC closed nearly flat at Rs 223.25.
THE stock of diesel engine-maker Cummins (India) Ltd has been rising over the past few days.
A dealer said a couple of brokerage houses have been actively pushing the stock as a short-term bet. According to him, the company's K-38 diesel engines are in good demand worldwide. He said Cummins' US parent is the largest manufacturer of engines of that class.
Besides, the company also is sitting on a pile of cash, he added.The stock has risen from about Rs 105-106 levels a week ago to Rs 115.05 at close on Wednesday. A little over 36,000 shares were traded at the counter.
The CHENNAI-based tyre-maker MRF Ltd was zooming ahead of its board meeting next week.
Investors were buying whatever stock was available at the illiquid MRF counter on expectation of a big dividend. Besides, some investors are also hoping for a bonus, which MRF has denied.The stock, about 16,740 of which were traded, closed at Rs 2,097.35, up 12 per cent on the BSE on Wednesday.
A tale of outsourcing
THE stock of Mirza Tanners has been attracting investors' attention over the past few days. According to a market source, a couple of domestic funds are also picking up the stock.
The market grapevine has it that the company is in talks for a sizeable export order to supply to a US retailer.
The stock closed at Rs 93.05, the 20 per cent upper circuit. While about 1.6 lakh shares were traded on the BSE, about 2.7 lakh shares changed hands on the NSE.
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