Acc Moves Up On Bull Support

With the stockmarket hoping for a revision in the Minimum Alternate Tax (MAT), the fortunes of all majors including Associated Cement Companies (ACC) looked up. Though the stock did not gain much at the end of the week, there was a marked increase in trading activity in the counter.

The upward swing was first noticed on February 19. On that day, the ACC stock went up by nearly five per cent at the Bombay Stock Exchange (BSE) and also at the National Stock Exchange (NSE).

Market circles said, there was a huge buying order witnessed during the fag end of the day. Though the Sensex had dropped by about 60 points on that day during intra-day trading, the market barometer later firmed up, boosted by a couple of large buying orders.

Traders commented that hectic activity has been lately witnessed at the ACC counter and there were several enquiries by foreign players.

February 19 marked the sharpest ever rise in the ACC scrip in recent times. Shares of the cement major gained Rs 66.75 to close at Rs 1,479 on active buying by speculators.

With media reports that the economic slowdown is finally over and industrial output is also poised to take off, lately there are some buying interests in the counter. While perhaps the majority of the buyers are still punters who hope to cash in once the finance minister announces the revision of MAT, there are some foreign funds who are making enquiries as well, said a corporate broker.

An economic recession invariably slows down all industries. Cement being an important ingredient does not find any favour from the manufacturers and consequently the markets reacts adversely to such companies, reasoned a senior market player.

The ACC counter saw a complete turnaround from the period when the cement major had dipped below Rs 1,000 levels. An economic recession had dampened the prospects of the company. But, thankfully, it is now a thing of the past, said another broker.