L&T dips over 4% after eight-day rally

The stock has hit a three month high of Rs 1,371 on Wednesday, rallied 21% from Rs 1,135 on June 1.

Larsen and Toubro (L&T) has dipped 4% to Rs 1,296 after surging 19% in past eight trading days on the Bombay Stock Exchange. The stock opened at Rs 1,340 and hit a low of Rs 1,289 so far. A combined 2.92 million shares have changed hands on the till late noon deals on both the exchanges.

The stock had hit a three month high of Rs 1,371 on Wednesday, surging 21% from Rs 1,135 at the beginning of current month after winning orders worth of Rs 7,693 crore during the month.

According to market buzz, Japanese engineering major, Mitsubishi Heavy industries is planning to acquire a stake in L&T's subsidiary, L&T Shipbuilding within a few years to secure its first shipbuilding base overseas

L&T Shipbuilding, a subsidiary of domestic infrastructure major, L&T signed an agreement in December last year with Mitsubishi for technological assistance, ranging from design drawings to quality control.