Hindustan Lever today brought in good news as the stock contributed over 50 per cent of the gains in the Sensex. Market grapevine highlights the participation of leading FIIs in executing huge buy orders which influenced the price rise. DSP Merrill was talked as a major dealmaker, but this could not be confirmed. During the earlier part of trading, rumours spread that HLL may not announce a liberal bonus (the company is meeting on February 15 to consider annual accounts for 1998). But operators took positions later when the word spread that a leading FII had picked up huge lots. HLL hit the upper limit of the circuit at Rs 2,033 on the BSE. On the NSE however the stock was locked at Rs 2,020. The FII buying was based on the expectations of a `thrilling' performance from HLL -- a 25-30 per cent growth in net profit.Telco leads auto stocks rally:
Led by a gain of seven per cent in Telco, which moved closer to the Rs 200-mark, players rushed to take positions at other auto counters like BajajAuto, M&M and Ashok Leyland. While Bajaj Auto rose marginally to close at Rs 533 with a gain of 3.39 per cent, Ashok Leyland was locked at the upper limit of the price band at Rs 44.40. M&M also hit the upper circuit limit.
Institutions as saviours:
UTI stepped forward to make its presence felt at the heavy weight index counters on Wednesday. Observers explained that though the government cannot pressurise the FIs to pick up stocks offered through the divestment channel, they have been asked to prop up the indices. According to market players, the next in line will be heavy weights like Reliance and ITC. Considering the market signals, the ITC stock looks set for a breakout at Rs 850 levels. Similarly, in the case of Reliance, market players anticipate that the stock might register a sharp jump.
FII activity increases:
Reports of a lot of activity by Foreign Institutional Investors (FIIs) flowed in. Morgan Stanley mutual fund, reportedly bought 80,000 shares of NIIT, 4-5 lakh sharesof Tata Tea. Capital International is reported to have placed an order to buy 3-4 lakh shares of Castrol. The Canbank Off-shore Fund is reported to have bought Sonata Software. On the sell side Kleinwort Benson is reported to have sold 2 lakh shares of Pentafour Software.
Wartsilla Diesel; power performance:
The market expects the scrip price of this counter to touch Rs 350-360 very shortly. It is expected that the company, which had earnings of Rs 11.4 crore last year, will earn Rs 17 crore this year. According to some fund managers, Wartsilla Diesel has a very healthy order book which is almost three times its order book in January 1998.
Rhone Poulenc; good medicine:h The pharma stock which has hit its new 52 week high of Rs 1135 yesterday is another stock which has caught the fancy of FIIs. The market expects the scrip price to go up to Rs 1,300 in the next few weeks. "The results reported by Rhone Poulenc are exceptionally good", said a fund manager. Expectations of a bonus is alsobeing factored in.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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