The Hindu Business Line : SC ruling turns sentiment for Kothari Products

THE counter of pan masala maker Kothari Products on Tuesday witnessed increased volumes along with rise in the stock price. The stock gained 4.79 per cent at Rs 215.55 on the BSE with volumes of 19,357 shares. On the NSE, it closed at Rs 216, up 5.29 per cent with volumes of 40,320 shares.

Dealers said the interest in the counter has been revived in the last couple of days. This is due to the recent ruling by Supreme Court, which ruled that various States cannot impose ban on pan masala. Last year several States had banned the sale of pan masala and that affected the profits of the company. In the June quarter, the profit of the company had declined by almost 50 per cent compared to corresponding quarter of last year.

Down on inflation worries

SEVERAL frontline banking stocks are on the downward move. If the market talk is to be believed, several market players have turned bearish on the sector due to rising inflation.

Dealers said high inflation rate is negative for the banking sector as this could lead to higher interest rates in the next few quarters. This in turn would affect the bottomline of most of the banks when they value their investment in government securities.

On Tuesday, selling in some leading bank stocks was seen due to this concern. ICICI Bank was down 0.92 per cent at Rs 273.55 on the BSE, SBI (down 0.54 per cent at Rs 439.90), HDFC Bank (down 1.81 per cent at Rs 365.20), Bank of Baroda (down 0.80 per cent at Rs 161.25), Oriental Bank of Commerce (down 1.07 per cent at Rs 236) and Canara Bank (down 3.01 per cent at Rs 122.55).

Nifty under pressure

STOCK price of most of the index stocks fell in the last one hour of trading. The fall in the stock prices was due to selling of Nifty index by a leading domestic financial institution. Dealers said this institution sold Nifty index valued around Rs 50 crore.

Talk is that after this institution sold the index, the sentiment in the market turned bearish.

Virendra Verma

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