Buying by foreign funds and institutions pulled up the scrip price of Gujarat Ambuja Cements Ltd (GACL) to Rs 178.60 in intra-day deals today.
The share closed at Rs 177.15, up by 6.24 per cent. The traded volume on the National Stock Exchange and the Bombay Stock Exchange (BSE) were 5.88 lakh shares and 5.53 lakh shares, respectively. In afternoon trades, the stock was among the top gainers on the BSE.
There have been rumours that cement prices are expected to increase further. While the veracity of the reports could not be ascertained, they served to induce a positive sentiment in cement stocks.
There were also rumours that domestic institutions such as the Life Insurance Corporation, General Insurance Corporation and its subsidiaries are active on the counter.
One of the main drivers behind the rise in the share price of GACL has been an expected pick-up in demand -- which is usually happens at the end of the monsoons.
Other cement stocks such as ACC, Grasim, Larsen and Toubro also showed bullishness and ended with gains.
