Shares of real estate companies closed higher on Thursday as investors started accumulating some sector-specific beaten down stocks.
Property developer Unitech posted its best single-day gain in nearly 16 months, rallying 9.6 percent after JPMorgan upgraded the beaten down stock to “overweight” from “neutral”, citing cheap valuations, reasonable gearing, comfortable liquidity and high embedded land value.
Shares in Reliance Communication rose over 9 percent in trade today after a news channel reported that ATC has emerged as the highest bidder for the firm’s tower arm.
RComm ended 9.3 percent higher at 99.30 rupees and was the top traded stock on BSE. The firm was also the top Sensex gainer.
Shares of Mahindra group firm Tech Mahindra jumped 9.26 percent to 739 rupees, while outsourcer Mahindra Satyam rose 3.7 percent to 64.90 rupees after an agreement between Mahindra group and Cisco Systems was announced.
Mahindra group is partnering with U.S. telecom equipment maker Cisco Systems to provide a range of services including cloud computing.
The BSE Realty index ended lower on Tuesday on concerns of increasing interest rates and as rising input costs weighed on investors.
Analysts said with foreign funds pulling out more than $1 billion from Indian equities since the start of January, the outlook for the near term remained subdued.
The BSE Realty index was down 3 percent, underperforming the benchmark index, which was down 1.5 percent. Shares of DLF, Unitech, Indiabulls Real Estate and Sobha Developers were down between 1 and 7 percent.
The Realty index has slipped over 20 percent in 2011. Do you see a further downside in real estate shares?
Shares in SpiceJet and Sun TV Network fell on market talk that Sun founder Kalanithi Maran’s deal of buying a stake in SpiceJet was under investigation by the Central Bureau of Investigation, four dealers said.
Shares of both the companies had fallen 7-13 percent on Friday
SpiceJet closed 2 percent lower at 47.65 rupees while shares in Sun TV Network ended 11.4 percent down at 410 rupees.
Shares in A2Z Maintenance and Engineering Services made a peculiar trading debut on Thursday – opening above the issue price of 400 rupees per share on one exchange, and lower on another – before closing sharply down.
The counter opened at Rs 500 on the NSE, but immediately slipped below its issue price and ended 17.9 percent lower at 328.15 rupees. On the BSE, it closed 12.3 percent down at 328.90 rupees.
Shares of Ispat Industries rose more than 13 percent on Wednesday after JSW Steel made an open offer to acquire up to 20 percent stake in the firm at 20.54 rupees a share.
On Tuesday, JSW Steel said it would buy 41.3 percent stake in Ispat for $476 million to expand capacity.