The Hindu Business Line : Finance and investment cos' stocks in focus

THE stocks of finance and investment companies are in the limelight due to a good performance by the Indian economy and the equity markets, said brokers.

According to them, companies that are into lending and securities broking are the hot picks among the market players.

The stocks that attracted active buying on Monday include Fortis Financial (up 20 per cent at Rs 28.40 on the BSE), Shriram City Union (up 10.81 per cent at Rs 49.70), Allianz Capital (9.54 per cent at Rs 33.30), SREI Infrastructure (up 8.71 per cent at Rs 59.90), Tata Investment Corporation (up 5.06 per cent at Rs 407.90) and Shriram Transport (up 5 per cent at Rs 63).

Brokers said there has been a sudden interest in the stock of companies in the broking business. They said this is one of the sectors that had not done well in the last two years, ever since the bull run began. The reason for the interest is that the consumer finance and vehicle finance businesses are doing well and several non-banking finance companies are doing brisk business. Many finance companies are also into stock broking. "Broking income for most stock broking companies has increased substantially, but their stocks did not move in line with the growth in the past," said a broker.

He said the listing of the shares of Indiabulls Financial Services last year had changed the overall profile of stock broking companies, leading to re-rating of this sector in the market.

There are other listed companies in which they have large-scale investments. The investment value has gone up, while the stock of the company has not moved in line with it.

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