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Dabur, HCL Tech: Useful stock-splits

THE proposed stock-split by Dabur India and HCL Technologies may help underpin firm trends in the prices of the two stocks.

Dabur India has proposed a stock-split in the ratio of 10:1 and the face value of each share would be reduced to Re. 1 from Rs. 10 now. While this is a formal announcement, in the case of HCL Technologies, the top management has indicated a 2:1 stock-spl it. This would lead to the face value moving to Rs. 2 from Rs. 4. The stock-split could enthuse some speculative interest in these stocks in anticipation of higher price levels once they start to trade on a post-stock-split basis. The stock-split announc ement could provide some support to the Dabur stock which has shown some feeble signs of weakness in recent trading. In the case of HCL Technologies, the overall market sentiment for technology stocks may also be a factor in the price formation process. -- BL Research Bureau