Videocon Updates...

Tuesday, December 04, 2007


During the bull run in the late 90s any stock with a technology story would be besieged by frenzied buyers. The ongoing rally at the bourses that began in 2003 has seen many fads. The latest appears to be companies with an oil story to it. After the spectacular upswing in Reliance Petroleum and Essar Oil stocks, bulls are flocking to the Videocon Industries counter. The mutual fund arm of a corporate with interests in energy and telecom, and a former star fund manager at the erstwhile Alliance Capital, are reported to have taken huge positions at the counter.

The company had made a presentation to some deep-pocket investors last week, though the details are not yet known. Bulls in the stock are circulating the theory that the company’s oil exploration arm has made a huge find in Oman, which has not yet been made public. When contacted, a senior official of the company denied any such development. The stock of the company surged 20% to close at Rs 491.70 with 21.8 lakh shares changing hands on BSE alone, more than twice the 2-week daily average volume.