Sintex Industries dips 6% because of being a high beta stock

Shares of Sintex Industries slipped over 6% on Monday, with stock brokers attributing it to the stock being a high beta having tendency to move more sharply than the broader market.

While there may be some merit in brokers' technical reasoning, there was also a buzz in the market that certain fund managers took the advantage of the fall to accumulate shares at lower levels in anticipation of rerating in the coming days.

Goldman Sachs is learnt to have included Sintex Inds in its conviction list due to the company's cash generating ability with limited direct risk to the global macroeconomics environment, strong revenue growth and attractive share price.

Apart from a healthy order book, it is likely to be a key beneficiary of government's non-cyclical and growing social spending and has positive future cash flows. Sintex closed 6.4% down at 145.6 against a 2.2% fall in the Sensex on Monday.