Heard on the street
Silent Operator at work on Hindalco
After underperforming its Sensex and Nifty peers for more than a year, shares of aluminium major Hindalco appear to be gradually regaining favour with investors. The stock, which closed at Rs 197.20 on Tuesday, has risen 10% over the past one week and 14% over the last one month. In comparison, the Sensex has fallen 2% and 4% respectively during the same period.
Grapevine has it that the Silent Operator has recommended his inner circle of high networth clients to start accumulating the stock. In fact, he is said to be so bullish on the stock that he has advised them to switch from Reliance Industries (a perennial favourite with Silent) to Hindalco.
But he has also cautioned his acolytes not to expect huge returns immediately and be patient. Such bullishness on Hindalco at a time when the direction of the overall market seems uncertain, suggests that the Silent Operator may be on to something. For the moment, the stock does not figure high up on the rankings of most brokerages.
Earlier this month, brokerage house Goldman Sachs downgraded its rating on the stock from neutral to sell, and slashed its price target by 13% to Rs 154. A tight copper concentrate market and no contribution to earnings growth from Novelis have been cited as the reasons for the downgrade.
Lalu gives investors a reason to cheer
The Rail Budget may have brought cheer to most Indians, but investors in certain shares were left happier than those in some others. Steel scrips surged as the proposed doubling of lines, renewal of old tracks and new tracks is expected to boost demand for steel.
SAIL, Jindal Steel & Power, Tata Steel and JSW Steel were among the best performers of the day. Jindal Stainless topped the chart amid high volumes (up 7.2% to close at Rs 160) on market talk that the company can expect a large share of the ‘stainless steel coaches by 2010’ proposal of the railway minister. Dealers are also recommending Bartronics (up 8.4% at Rs 224) to their clients as there is a feeling that ‘smartcard ticketing systems’ will benefit the company immensely in the coming years.
Texmaco is also expected to be in focus in the coming weeks as the company is expected to get a good chunk of the order for new wagons. Meanwhile, shares of Kernex Microsystem hit the circuit on rumours that the company has bagged orders for anti collision devices from the Indian Railways and is expected to make a formal announcement shortly.
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