Exide slips as funds turn wary

Exide , whose stock has been outperforming the market in the past one month, ended weak on Wednesday amid talk that some fund managers had sold the stock in a portfolio rejig. The stock slipped 2.5% to 151.7 on the BSE. According to sources, the management has asked employees to implement cost-cutting measures, which some marketmen interpret as signs that things are not too hunky dory at the company. Exide has also taken similar initiatives in the past. "Since lead constitutes about 65% of the total cost of a battery, Exide keeps tinkering with the balance 35% of the cost and tries to save wherever possible," said a broker. The month-long gains were triggered by strong batteries demand from replacement market.


Contributed by Nishanth Vasudevan & Anuradha Himatsingka