homemarket Newsstocks NewsMarket sees short covering; big block in SRF: Stocks that kept dealers busy on Friday
Market sees short covering; big block in SRF: Stocks that kept dealers busy on Friday
Shares of SRF have declined in 12 out of the last 13 trading sessions, while dealers anticipate strong results for Bajaj Finance.
Shares of SRF ended 1.5 percent lower on Friday after a big block deal where 6 lakh shares of the company exchanged hands. Buyers and sellers are not immediately known.
The stock has ended lower in 12 out of the last 13 trading sessions during which it has declined over 10 percent.
Sources within the Dealing rooms tell CNBC TV-18 that the promoter entity is likely to be a seller in the block deal.
As of the June quarter shareholding pattern, promoters held 50.73 percent stake in SRF. Morgan Stanley in its report on Thursday, highlighted SRF to be its top pick among the specialty chemical names. The company also commissioned a plant to produce 300 MTPA of P38 at its Dahej Plant on Thursday.
A Day of Short Covering
Indian equities finally saw green on the screen after a seven-day drop that saw indices break some key support levels. Dealers attributed the move to short covering after the RBI policy event was out of the way. The October F&O series had begun with record short positions.
Nifty Bank led the outperformance on Friday, after having corrected over 10 percent in the September series.
Selling continues from Institutional Investors, according to dealing rooms. However, the intensity of the selling is not as high as anticipated. For the near-term, the range for the NSE Nifty 50 index is seen between 16,800 and 17,300
Besides SRF, here are some other stocks that have been part of the dealing room chatter today:
Bajaj Finance: India's biggest NBFC ended higher after declining for five consecutive days. Dealers suggest that the stock gained in today's session after flows from Institutional Investors returned after a lull. The focus will now be on quarterly updates which will begin starting next week and dealers are anticipating a strong one from Bajaj Finance.
Granules India: The stock had its best day in nearly three months ending with gains of nearly 7 percent on Friday. Although dealers were not able to specifically pin point a reason as to why the stock moved higher, the stock is in news for the buyback that began earlier this week. The company is carrying out a "fixed price" buyback at Rs 400 per share, which is still 15.5 percent away from its closing price on Friday.
Also Read: Sept auto sales preview: Did the festive season drive strong wholesales? Analysts divided
Note To Readers
Disclaimer: The stocks discussed in this article are based on unconfirmed reports from dealing rooms. It is advised to carry out your own due diligence before making any investment decision.
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