Shares of Bank of India moved up today with news of blocks deals in its stock permeating the market. The scrip price went up by nearly 9 per cent in intra-day deals, but closed at 6.5 per cent up, against its previous close.
Dealers said the market rumour was that there were three block deals and the price ranged between Rs 23 to 24 per share. Number of shares which changed hands was in the region of 40,000-odd. Marketmen said Pioneer ITI Mutual Fund was learnt to be the seller of the stock, though the exact identity of the buyer could not be ascertained.
In noon deals, the scrip price had risen to a high of Rs 24.45 while later it slipped down to close at Rs 23.90, touching a low of Rs 22.45 during the day. Nearly 5.4 lakh shares changed hands at the counter on the BSE. The stock has gone up by more than 11 per cent in the past two weeks.
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Marketmen attributed the interest in the stock to the general attractiveness of banking stocks and the relatively cheap valuations. Fund managers however said FII interest in the stock was missing and it was mostly domestic brokerages who were pumping up the stock.
Many broking houses have recommended accumulating the stock at this stage as they feel there is a lot of shareholder value locked in it, which is not reflected in its current market price.