Heard on the street

Heard on the street


Rain Commodities on a high as FIs turn bullish

Shares

of Rain Commodities, one of the largest producers of calcined petroleum coke (CPC), have been on an upward journey despite a downtrend in the broader market in the past few weeks. Market sources say institutional investors have been bullish on the stock with a leading mutual fund acquiring sizeable stake through the open-market route recently.

Analysts expect CPC demand to get a boost amid commissioning of many large aluminium capacities in the next few years. Rain Commodities also manufacturers cement which is marketed under the brand ‘Priya Cement’ in the South. Last week, Reliance Mutual Fund bought a 4.5% equity, raising its stake to 9.1% in the company.

The growing institutional interest in the counter is also reflected in the sharp rise in the share price. The stock climbed 9% to Rs 234.8 in a flat market on Thursday, recording a 39% jump in the past one month.

Overseas fund managers welcome early trade

Foreign fund managers tracking India out of Singapore and Hong Kong are happy that trade timings have been advanced rather than extended, while domestic fund managers wish that it would have been the other way round. These money managers

start their day as early as 7 am (Hong Kong/Singapore time).

By the time those markets close, there is about two-and-a-half hours of trading still left in India. So, the fund managers leave for home at 6 pm (HK/Singapore). Had timings been extended beyond 3:30, these fund managers would have been delayed in office for another hour. But domestic fund managers are unhappy, considering that they will now have to begin their day earlier.

Lack of clarity on RIL’s Lyondell bid drags down

Shares of Reliance Industries drifted lower on Thursday, shedding 1.2% over its previous close to end the day at Rs 1,034, and weighing down the main indices. The market is awaiting whether RIL will make a financial

bid for Dutch petrochemical firm LyondellBasell.

Market participants say officials from RIL’s investor relations team had met up with fund managers on Tuesday, where it was indicated that the bidding process could be a long-drawn affair, and that it would bid “reasonably” and not “aggressively”.

(Contributed by Vijay Gurav & Santosh Nair)


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Src: Economictimes, DP Blog