Reliance Industries (RIL) has shrugged off the negative impact of the market regulator’s order on unfair trade practices, which directed the firm to pay Rs 447 crore with an annual interest of 12 per cent on March 24. After the initial hiccup last Monday, the stock has gained around six per cent to close at Rs 1,320 on Friday. Market players are expecting a hefty dividend and even a bonus in the next two quarters. “While there is a sense of relief in the market on Jio’s success, there are strong expectations that RIL would reward shareholders soon,” said a fund manager.
Joydeep Ghosh
Infibeam stock crashes as share lock-in ends
Shares of e-commerce company Infibeam Incorporation crashed 30 per cent last week. Market players say the pre-initial public offering (IPO) lock-in on the company’s shares has ended, which is adding to the selling pressure. Despite the fall, the stock still trades 118 per cent higher at Rs 944, compared to the IPO price of Rs 432. “Some pre-IPO investors are looking to exit, as the lock-in has ended,” said a broker. The volatility will be high, as the scrip has now been added to the derivatives segment, and the stock dropped 16 per cent on Friday, the day it got included in the futures and options segment.
Shares of e-commerce company Infibeam Incorporation crashed 30 per cent last week. Market players say the pre-initial public offering (IPO) lock-in on the company’s shares has ended, which is adding to the selling pressure. Despite the fall, the stock still trades 118 per cent higher at Rs 944, compared to the IPO price of Rs 432. “Some pre-IPO investors are looking to exit, as the lock-in has ended,” said a broker. The volatility will be high, as the scrip has now been added to the derivatives segment, and the stock dropped 16 per cent on Friday, the day it got included in the futures and options segment.
Samie Modak
Vedanta, Hindalco triple after ouster from Sensex
Expulsion from the benchmark S&P BSE Sensex index has been a boon for Vedanta and Hindalco. Following a huge correction amid meltdown in global commodity prices, both companies were excluded from the 30-share index in December 2015. Since then shares of both the companies have tripled. “Theoretically, addition to an index is a positive and removal is negative, but it often plays out the other way. Whenever the stock gets added the best is usually past it, at least in the near term. Similarly, a correction is normally played out when a stock gets excluded,” said a fund manager. Bharat Heavy Electricals and Idea Cellular, expelled last week from the Nifty index, can take heart.
Expulsion from the benchmark S&P BSE Sensex index has been a boon for Vedanta and Hindalco. Following a huge correction amid meltdown in global commodity prices, both companies were excluded from the 30-share index in December 2015. Since then shares of both the companies have tripled. “Theoretically, addition to an index is a positive and removal is negative, but it often plays out the other way. Whenever the stock gets added the best is usually past it, at least in the near term. Similarly, a correction is normally played out when a stock gets excluded,” said a fund manager. Bharat Heavy Electricals and Idea Cellular, expelled last week from the Nifty index, can take heart.
Samie Modak
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