L&T Dips On News Of Birla Disinterest

Mumbai, Aug 30: | Updated: Aug 31 2002, 05:30am hrs
Larsen & Toubro (L&T) plunged despite upbeat market conditions following reports that the AV Birla Group may not buy the Unit Trust of Indias (UTI) 10.71 per cent stakeholding in the company.

On The Stock Exchange, Mumbai (BSE), the stock of the cement and engineering conglomerate dipped by 1.6 per cent to close at Rs 184.10 as against its previous close at Rs 187.25. Earlier, the stock of L&T hit an intra-day high at Rs 184.90. A total number of 5,10,929 shares were traded on the counter of L&T.

Dealers further added that the stock had been garnering gains lately on the possibility of a sale materialising. In 19 sessions from August 1 and August 19, 2002, the stock has witnessed a surge by nearly 19 per cent.

However, analysts are far from optimistic on their outlook on the stock as they are not too upbeat on the cement sector. They further said that the cement prices are subdued currently and are likely to be further pressurised. They remained sceptical on the back of the poor first quarter results posted by the company, where it posted a decline of 31.4 per cent in its bottomline.