Bonus issue fails to pump up Tata Steel

DALAL STREET SPIKES

Tata Steel's 1: 2 bonus announcement failed to enthuse the markets as the stock slipped more than 2 per cent after hitting an intra-day high of Rs 322. The stock finally closed at Rs 308.75, down 2.12 per cent from its previous close.

The stock was hammered following the company's announcement of 1:2 bonus in mid-afternoon trading. The counter witnessed a volume of more than 76.1 lakh shares at the BSE. The volume at the NSE was even higher with over 1.6 crore shares changing hands with the stock closing at Rs 308.70.

The bonus expectation was build up in the stock in the last few days and today's 1:2 bonus announcement was not a big surprise for the markets, said an institutional dealer.

The stock was in limelight over the past few day in anticipation of liberal bonus announcement and on reports that Maruti Udyog has asked Tisco to increase the supply of high value auto grade steel to 3,000 tonnes per month.