Bonus Issue Rumours Send Telco,Tata Tea Scrips Soaring
Stoked by strong rumours of a bonus issue, the stock prices of Telco and Tata Tea soared sharply during intra-day trading at the Bombay Stock Exchange (BSE) yesterday.
The stock to hog the limelight, however, was Reliance, which riding on reports of the company contemplating a bonus issue at next weeks board meeting, touched a new 52-week high of Rs 366.75 on the BSE and Rs 359.70 on the NSE during intra-day trading.
Rumours of a bonus issue by Telco and Tata Tea sent the share prices of the duo spiralling during intra-day deals. Telco officials have, however, denied reports of a bonus offering in a section of the media. On the BSE, the Telco scrip hit an intra-day high of Rs 463 before slipping to Rs 451 at close, a gain of Rs 17 over the previous close.
The Tata Tea scrip rocketed to a 52-week high of Rs 403.50 on the BSE before closing at Rs 396, a gain of Rs 8 over the previous close. Tata Chemicals, which had not taken part in the rally so far, also witnessed hectic activity yesterday. The scrip touched an intra day high of Rs 170 but fell to Rs 163.50 at close, a gain of Rs 8 over the previous close.
Despite such intra-day volatility of stock prices, indices across the major bourses yesterday lost ground marginally on account of profit taking. The BSE sensex closed the day at 4,083.04, down 5.94 points over the previous close of 4088.98 on the last day of the current settlement cycle at the exchange.
The sensex touched an intra day high of 4,142.75, mainly due to hectic activity in Reliance, SBI and Telco. The NSE-fifty lost 1.45 points over the previous close to end the day at 1,158.35.
The sensex witnessed sharp swings during the day with an initial spurt of 41.08 points as the sensex touched 4,142 levels after opening at 4,101.67. From there, profit-booking pulled the markets down to the days low of 4,060.30, before moving up marginally to close at 4,083.04.
Domestic financial institutions like UTI, GIC and LIC were seen selling at select counters, though it was not aggressive selling at any stage.
Said a dealer at an FII broking house: The market is in an over bought position at the moment. The indices are facing a lot of resistance on account of profit taking at higher levels. Still, the undertone of the market is bullish as the FII funds are still flowing in.