The Hindu Business Line : Solvay Pharma up on bonus hopes

IS Solvay Pharma coming out with a bonus issue or a buy-back proposal? Though there is no official word yet from the company, Dalal Street was humming with such rumours.

The stock price on Thursday moved up with increased volumes on this market talk, according to dealers. The stock finished at Rs 556.50, up around 4 per cent on the BSE. The counter's traded quantity improved more than four-fold to 35,560 shares against its two-week average daily volume of 8,090 shares on the exchange.

Betting on higher price

Ingersoll-Rand India, for which its overseas parent has come out with an open offer for 26 per cent outstanding stake through the book-building process, did not show much inclination to climb down to the offer price level of Rs 325. The stock opened at Rs 350, scaled the day's peak at Rs 359 and closed at Rs 339 with a surge in traded volume at around 3.15 lakh shares on the BSE.

According to market sources, huge trading interest has emerged in the counter owing to an expectation that the ensuing bidding process would discover a price higher than the current level.

On price hike expectations

In anticipation of a hike in prices of petrol and diesel before the end of this month, the petroleum refining and marketing companies are seeing a slow build-up in prices through huge market churning. According to market sources, a section of investors is exiting from these stocks on apprehension of further increases in losses in view of a steady rise in global crude oil price, and particularly, the price of the basket of crude that India imports has also witnessed a steep rise recently.

On the other hand, some are making entry into the stocks at a lower level expecting higher refining margin and certain protection through product price hikes. While Hindustan Petroleum closed at the day's peak at Rs 306, up around one per cent with a traded quantity of 6.29 lakh shares, Bharat Petroleum also moved up one per cent to close at Rs 365.20 on a traded volume of 91,320 shares on the BSE.

Jayanta Mallick

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