Heard on the Street: Alfa Laval, Tata Motors
Activity has picked up in the Alfa Laval counter, ahead of the delisting, which will open in mid February. Many domestic funds and HNIs that specialise in short-term arbitrage play are flocking to the counter.
By ET Bureau | Updated:
Alfa Laval counter in the thick of action
Activity has picked up in the Alfa Laval counter, ahead of the delisting, which will open in mid February. Many domestic funds and HNIs that specialise in short-term arbitrage play are flocking to the counter. The stock saw over 75,000 shares changing hands on Wednesday. The strategy is simple: buy in the range of Rs 2,800-2,900 and tender the shares in reverse book-building next month. These investors are expecting the discovered price to be anywhere near Rs 3,000-3,100, resulting in a quick gain of 5-10% in 6-8 weeks. The stock closed at Rs 2,862, trading at a P/E of around 38, considered to be expensive by analysts.
Tata Motors on a dream run
The run-up on Tata Motors continues unabated, with the stock rising 4.1% to Rs 230.95 on Wednesday. The truck giant recorded its biggest percentage gain since January 3 and hit its highest level in eight months on expectations its earnings for the December quarter will be ahead of analysts’ forecast. Tata Motors is also being accumulated by two American funds, a dealer said.
Compiled by: Apurv Gupta & Shailendra Bhatnagar
Activity has picked up in the Alfa Laval counter, ahead of the delisting, which will open in mid February. Many domestic funds and HNIs that specialise in short-term arbitrage play are flocking to the counter. The stock saw over 75,000 shares changing hands on Wednesday. The strategy is simple: buy in the range of Rs 2,800-2,900 and tender the shares in reverse book-building next month. These investors are expecting the discovered price to be anywhere near Rs 3,000-3,100, resulting in a quick gain of 5-10% in 6-8 weeks. The stock closed at Rs 2,862, trading at a P/E of around 38, considered to be expensive by analysts.
Tata Motors on a dream run
The run-up on Tata Motors continues unabated, with the stock rising 4.1% to Rs 230.95 on Wednesday. The truck giant recorded its biggest percentage gain since January 3 and hit its highest level in eight months on expectations its earnings for the December quarter will be ahead of analysts’ forecast. Tata Motors is also being accumulated by two American funds, a dealer said.
Compiled by: Apurv Gupta & Shailendra Bhatnagar
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