Date:27/09/2005 URL: http://www.thehindubusinessline.com/2005/09/27/stories/2005092703651500.htm

Back FII interest strengthens BOC counter

BOC India, an industrial gas producer, has been attracting the attention of institutional investors over the last few days. Active interest of buyers is evident in the fact that the stock price has risen by more than 15 per cent despite the huge sell-off of last week. In one month's time, the stock is up 38 per cent.

On Monday, it closed at Rs 190.20, up 12.91 per cent, with volumes of 26.85 lakh shares on the BSE; on the NSE, it closed at Rs 190.35, up 12.27 per cent, with volumes of 51.25 lakh shares. Dealers said some FIIs are buying the shares of the company. Last week, Nomura Asset Management bought the shares of the company.

The interest in the stock is primarily due to the good prospects for the steel industries. It supplies industrial oxygen to various steel companies.

The talk is that the company is likely to supply oxygen to various steel plants that are being set up over the next few years.

Up on acquisitions

ANOTHER acquisition by auto-ancillary company Bharat Forge helped maintain a bullish sentiment in the company's stock. The acquisition of Imatra Kilsta AB, Sweden and Scottish Stampings, Scotland, by Bharat Forge last week is seen as a positive.

Dealers said this is company's fourth buy and more acquisitions are likely to happen soon. The talk is that the funds raised by the company earlier this year through GDR and FCCB bonds are primarily for this purpose.

Several broking firms, which are bullish on the stock for long, have again put a `buy' after the acquisition.

On Monday, the stock closed at Rs 336.35, up 4.51 per cent, with volumes of 1.72 lakh shares on the BSE; on the NSE, it closed at Rs 336.35, up 4.39 per cent, with volumes of 4.41 lakh shares.

Rise on low volumes

IS it a case of a dead cat bouncing back or a recovery after last week's fall? That was the key question among most of the broking firms. The question arises as the rise of stock prices on Monday was on the back of low volumes. There was a dip in volumes by more than 25 per cent on the cash markets of BSE and NSE.

Dealers said there was not much buying seen from FIIs and domestic mutual funds. The talk is that Monday's rise in stock prices was just ahead of the derivatives expiry on Thursday and most of the traders are likely to exit by Tuesday. After this there could be some more sell-off, dealers said.

Virendra Verma