But in every industry, there comes a time when consolidation starts. Sometimes smaller players are absorbed by larger ones while in other instances, smaller players join hands to remain in the competition. This has happened with the telecom industry and then in the realty sector.
On Thursday, HSBC Asset Management, which is a minor player in the industry, said it will acquire the 12th largest mutual fund house in the country: L&T Mutual Fund. HSBC said it plans to be a leading player in the country.
However, investors were not happy with L&T Finance’s decision to sell the mutual fund arm. Even though it contributes 2.5 per cent of its consolidated income, investors dumped shares and the counter plummeted 7 per cent on Friday.
Ceinsys Tech extends gains
Heavy buying continued at Ceinsys Tech counter as it further jumped 15 per cent to hit its 52-week high level. This comes on top of a 20 per cent addition in share prices on Thursday.
The stock has gained prominence after the engineering services company announced the acquisition of Allygrow Technologies, a technology-driven firm with a presence in the US, Europe and India.
Infosys hits a milestone
Heavy buying in IT stocks has been a trend during the market’s consolidation phase. The result of that is not just visible in the investor portfolio but on the companies’ market cap as well.
IT major Infosys hit a record high of Rs 1,913 on Friday and became the only second IT firm in India to cross the market value of Rs 8 lakh crore. The stock’s market value was neck-to-neck with HDFC Bank, the third most valued stock on Dalal Street. IT giant TCS enjoys a m-cap in excess of Rs 13.5 lakh crore while Reliance Industries tops the m-cap chart with Rs 16 lakh in market value.
Though, profit-booking at the high level pushed prices lower near the flatline.
HCL Tech gets a booster
If already surging share prices of IT companies were not enough, promoters are also providing reasons to investors to binge on them. HCL Tech added 3 per cent in early trade Friday as reports said that the company’s promoters are set to purchase 45 lakh shares of the firm in the open market.
The reverse booking for block purchase was launched at up to a 5 percent premium to the closing price, CNBC Awaaz reported on Thursday, adding that Citi is said to be the broker to the deal.
economictimes.indiatimes.com
