The Hindu Business Line : Stock-split confusion in L&T

The stock opened firm and touched an intra-day high of Rs 565 and a low of Rs 515 and finally closed at Rs 521.50, marginally lower than previous close on the BSE. Similar price trend was seen on the NSE. Dealers said the market was confused over what could be the value of share after the cement division de-merger. Even several dealers were not able to tell their clients what it meant for them and whether to sell or buy the shares. Another confusion was, whether the company could go for stock-split as under the revised guidelines of the SEBI, a company can go for stock-split only if the stock price is over Rs 500 and the stock price of L&T recently crossed theRs 500 mark.

Huge bonanza

It's going to be a great bonanza for the shipping companies in the third quarter. If the market talk were to be believed, the profits of shipping companies would be much higher than the September quarter. This is due to the sharp rise in the freight rates from October 2003. Freight rates for tankers have increased from around $48,500 per day for very large crude carriers in September to around $82,000 per day in December 2003.

For Suezmax vessels, the rates has more than doubled from $24,000 per day in September and for Aframax, rates have shot up by 160 per cent from $20,000 to $53,000 per day during this period. Similar rise is also seen in the dry bulk sector.

Due to this, most of the shipping companies such as Great Eastern Shipping, Shipping Corporation of India, Essar Shipping, are likely to report sharp increase in their bottomlines.Huge buying is taking place in most of these counters. A leading foreign broking firm is believed to have big position in shipping counters on Tuesday, when the price of most of the stocks fell.

Virendra Verma

More Stories on : Stock Markets | Ear to the ground

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Reliance MF plans media, power, pharma funds

Corpn Bank to sell DSP Merrill MF products

MFs to follow uniform cut-off time for calculating NAVs

Bear domination

Sensex takes a knock, swings 200 points in volatile trading

Nocil spurts on `Reliance interest'

Stock-split confusion in L&T

IT counters at receiving end

A volatile day ends in heavy losses

ONGC, GAIL public offers open on March 10

Huge rush to convert shares into demat