MRF hits ceiling on heavy institutional buying

DALAL STREET SPIKES

MRF leaped 5 per cent or Rs 159 to Rs 3,339.10, touching the maximum permissible level for the day with 10,145 shares traded at the Bombay Stock Exchange (BSE).

The scrip closed at Rs 3180.10 on Wednesday. The stock witnessed a solid surge in the last one month whereby the scrip jumped 39 per cent.

According to market sources, institutional investors are responsible for the sudden surge. MRF is one of the leading players in the Indian tyre market with more than 20 per cent market share.

For the quarter ended June 2005, the company's net profit was down 1.2 per cent to Rs 16.88 crore but its net sales rose 21.1 per cent to Rs 795.12 crore.