Financial Daily from THE HINDU group of publications
Friday, Apr 11, 2003
Financial Daily from THE HINDU group of publications Friday, Apr 11, 2003 |
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Markets
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Stock Markets Columns - Ear to the ground Heavy auction in HFCL
THE sharp rise in the stock price of Himachal Futuristic Communication Ltd (HFCL) trapped a large number of short sellers. This was seen from large auction of shares on the BSE and the NSE. On the BSE, the auction was for around 11 lakh shares and on the NSE it was for 45.43 lakh shares. Dealers said the average auction price was around Rs 21. This auction was for trade done on Tuesday. The talk is that the various players that short-sold shares of HFCL following its sharp rise in the price were trapped, as they were not able to cover their positions as the stock price further increased. In just 8-9 trading sessions the stock has almost doubled. But on Thursday, the stock ended 2.31 per cent lower at Rs 19.05 with a volume of 88.59 lakh shares on the BSE; and on the NSE it closed at Rs 18.95, down 2.57 per cent with 2.54 crore shares traded.
Cipla too on auction list
ANOTHER stock that was on the auction list was pharma company Cipla. Dealers said around 24,000 shares of the company were auctioned on the NSE. This auction was also for trades on Tuesday. Dealers said auction of 24,000 shares in Cipla counter is high as the volumes in the counter are low. The impact of auction was also seen in the stock price on Thursday. The stock gained 2.35 per cent at Rs 743.65 with volume of 24,753 shares on BSE and on the NSE it closed at Rs 743.95, up 2.45 per cent with volume of 1.05 lakh shares.
MNC stocks attract FIs
ON a day when there was heavy selling in the technology counters, multinational companies' shares were in good demand from the institutional investors. Dealers said MNC stocks are defensive in nature and even if the results were bad they would not fall as sharply as technology stocks. This resulted in various institutional investors switching over from technology to MNC stocks. Some of the prominent MNC stocks that were purchased in small quantities included Nestle, ITC, Castrol and Hindustan Lever. This was the reason for most of them closing higher on Thursday. Nestle closed 1.52 per cent higher, ITC was up 2.15 per cent, Castrol was up 2.06 per cent and HLL price remained almost unchanged.
Virendra Verma
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