Bonus issue leg-up for Tata Steel

DALAL STREET SPIKES

Tata Steel was among the biggest gainers from the Sensex stock basket on Friday as investors mopped up the share ahead of its bonus announcement.

The share closed up 5.91 per cent ahead of the company's meeting on June 7 to consider a bonus issue. Market sources said the stock is moped up in anticipation of a favourable bonus ratio. The counter today witnessed brisk trading with the volume accounting for more than 59 lakh shares on the BSE.

The scrip, after hitting the day's high of Rs 317.95, closed at Rs 315.45. There were reports that Maruti Udyog might have asked the steel company to increase the supply of its high value auto grade steel. Reports suggest that the automobile maker wants the supply to go up three times.

Dealers tracking the scrip said there was extreme volatility at the counter during the day. Over the last two weeks the scrip has been swinging from a low of Rs 263 to Rs 330.

The company's board is scheduled to meet on June 7 and rumours have been gaining ground that a bonus issue is likely to be announced.