The Hindu Business Line : Promoters buying lifts scrip

ENGINEERING company ABG Heavy Industries stock was again in the limelight on Tuesday. Dealers said the interest in the stock came after talk of promoters of the company buying shares from the market.

The company has been reportedly doing well due to increased activity in the construction sector. Several market players too are understood to have taken position in the stock on expectation of good performance.

On Tuesday, the stock price of the company gained 9 per cent at Rs 61.15 on BSE with volume of 2.11 lakh shares.

Better output evokes interest

THE Ashok Leyland stock is being accumulated by several market players. Dealers said the stock has also caught the interest of several institutional investors.

The interest in the stock is due to the company's Hosur plant going into production after being closed for more than two months. There was no production in the plant as workers had gone on a strike.

The new wage pact signed by the labour unions (the strike was for a wage pact) has reportedly led to production at full capacity. Dealers said the third quarter of the company would be better than the second.

But the full impact would be seen in the last quarter (January-March). On Tuesday, Ashok Leyland stock gained 6.32 per cent at Rs 20.20 on the BSE with volumes of 29.97 lakh shares; on the NSE, it closed at Rs 20.10, up 5.79 per cent, with volumes of 81.90 lakh shares.

Good performance pays off

COLGATE stock is being accumulated by a section of the market. Since the beginning of this month, the stock price has gained 15 per cent, that too at a time when most FMCG companies' stocks are moving down.

The company has been reportedly consolidating its operations in the oral care business. It has also increased its market share in the toothpaste business.

Another reason for the sudden rise in the stock price is that the parent of the company is likely to increase its stake and may come out with an open offer. However, the exact nature of the offer and price was not known.

On Tuesday, the stock price of the company gained 3.24 per cent at Rs 172.30 on the BSE with volumes of 1.11 lakh shares; on the NSE, it closed at Rs 172.70, up 3.44 per cent, with volume of 2.85 lakh shares.

Virendra Verma

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