FDI hike lifts HDFC Bank scrip on BSE

DALAL STREET SPIKES

HDFC Bank witnessed hectic action in mid-trading session after the government hiked FDI limit in private sector banks to 74 per cent.

On the Bombay Stock Exchange (BSE), the stock surged 4.63 per cent to close at Rs 384.40, off from day's high of Rs 404.00.

Dealers said the huge spurt in the HDFC Bank stock was purely punter driven. From the recent low of Rs 290.25 touched on November 21, 2003, the HDFC Bank stock has risen 33.35 per cent to the current levels. Over a longer period, the stock has risen 106 per cent from Rs 188 on December 11, 2002.

HDFC Bank declared its third quarter results last week. For Q3 ended December 31, 2003, the bank posted a 32 per cent rise in net profit at Rs 130.36 crore (Rs 98.88 crore), on a 22 per cent increase in total income at Rs 779.39 crore (Rs 640.80 crore).

As on September 30, 2003, the promoters held 24.29 per cent stake in HDFC Bank, while institutions (including FIIs) and the public held 52.51 per cent and 22.01 per cent, respectively.

Essar Oil too

Essar Oil touched a new 52-week in mid-trading session on Thursday, after the government approved a 100 per cent foreign direct investment in private sector refineries.

On the BSE, the stock vaulted 15.10 per cent to close at Rs 25.15, off from day's high of Rs 26.25. The counter has hogged the limelight during the last few weeks on sustained buying from market participants.

The company, which launched its first retail outlet in November 2003, now plans to set up 1,700 retail outlets all over the country by the time its refinery goes on-stream in 2005.

Of these, 300 outlets will come up in Gujarat. In July 2003, Essar Oil announced that it would resume construction of its 12 mt refinery in Gujarat. Financial institutions have approved a new package for the project.