On The Stock Exchange, Mumbai (BSE) the stock of the countrys second largest cement producer closed at Rs 162.90, 4.7 per cent higher than its previous close of Rs 155.15. The counter clocked volumes of 7,51,000 shares on Thursday.
Dealers said that operators were active on the counter following hopes that the Securities and Exchange Board of India (Sebi) may order Gujarat Ambuja Cements Limited (GACL) to make an open offer to the companys public shareholders.
In 20 sessions between October 28, 2002 and November 27, 2002, the stock of ACC has witnessed a rise of nearly 20 per cent to Rs 155.10 from Rs 129.50, dealers added.
Meanwhile, the rise is also attributed to rumours that that cement manufacturers are planning another round of price hike in the first week of December 2002, dealers added.
However, analysts seem far from optimistic on their long-term outlook on the stock of ACC, as they expressed doubts as to whether cement prices can sustain their high level, unless production is curtailed. A rise in the demand for cement is not directly proportional to price hikes, analysts further emphasised.