Heard on the Street: Gold, Cummins shares
With gold quoting at well over Rs 24,000 per 10 gm, one would expect a rush of people, who invested in gold at lower prices, to offload the old jewellery or bars purchased at lower sums.
By ET Bureau | Updated:
Barricades at Zaveri Bazaar hit trading in yellow metal
With gold quoting at well over Rs 24,000 per 10 gm, one would expect a rush of people, who invested in gold at lower prices, to offload the old jewellery or bars purchased at lower sums. However, that's not happening, as people have been barred from bringing their vehicles into the kilometer-long stretch of Zaveri Bazaar, Mumbai's gold hub. That has made many scared to walk into or out of bullion traders’ shops with either jewellery or cash received after scrap sales. Ironically, the ingresses and egresses have been barricaded by cops after last month’s terror attack at the insistence of the traders themselves. Now, said a trader, cops were being asked to allow cars to only drop and pick up the consumers and not park outside the shops since business was suffering. An irony indeed.
Contributed by Ram Sahgal
Bonus announcement fails to stop wild swings in Cummins shares
Awild fluctuation in share price of Cummins India took the market by surprise on Thursday. The company’s bonus announcement that hit the market at noon, triggered a sudden upswing in the price which climbed to the day’s high of Rs 650.90, up 6.6% intra-day, on the BSE. But the euphoria in the counter proved short-lived as the stock came off sharply within next few minutes to touch the day’s low of Rs 595.6. It finally ended marginally up at Rs 614.4 on volumes six times higher the twoweek average.
Contributed by Vijay Gurav
With gold quoting at well over Rs 24,000 per 10 gm, one would expect a rush of people, who invested in gold at lower prices, to offload the old jewellery or bars purchased at lower sums. However, that's not happening, as people have been barred from bringing their vehicles into the kilometer-long stretch of Zaveri Bazaar, Mumbai's gold hub. That has made many scared to walk into or out of bullion traders’ shops with either jewellery or cash received after scrap sales. Ironically, the ingresses and egresses have been barricaded by cops after last month’s terror attack at the insistence of the traders themselves. Now, said a trader, cops were being asked to allow cars to only drop and pick up the consumers and not park outside the shops since business was suffering. An irony indeed.
Contributed by Ram Sahgal
Bonus announcement fails to stop wild swings in Cummins shares
Awild fluctuation in share price of Cummins India took the market by surprise on Thursday. The company’s bonus announcement that hit the market at noon, triggered a sudden upswing in the price which climbed to the day’s high of Rs 650.90, up 6.6% intra-day, on the BSE. But the euphoria in the counter proved short-lived as the stock came off sharply within next few minutes to touch the day’s low of Rs 595.6. It finally ended marginally up at Rs 614.4 on volumes six times higher the twoweek average.
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A significant part of the day’s volume was concentrated in just half-an-hour of trading after the bonus announcement. Brokers attributed the hyper volatility to the possibility that many investors may have opted to exit their positions at higher levels as the bonus ratio would have turned out to be below their expectations. The Cummins India board on Thursday recommended a bonus issue in the ratio of two for every five existing shares. The company’s equity and reserves stood Rs 39.6 crore and Rs 1,766 crore, respectively , as on March 31, 2011.Contributed by Vijay Gurav
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