Shares of Castrol India touched an intraday high of Rs 207.50 on the Bombay Stock Exchange (BSE) today, on the back of rumours that the parent company would come out with a second open offer.
The share was the biggest gainer during early afternoon trades on the BSE sensex, where it finally closed 4.14 per cent higher at Rs 199.55.
Rumours about the second open offer have been going around the market for close to a year now, and frequently acts as a driver to pump up the stock price.
Relatively high volumes accompanied the rise in prices today. More than 4 lakh shares were traded on the BSE, while volumes on the National Stock Exchange were even higher at 6.18 lakh shares. Operators used the rumours as an excuse to buy into the scrip. There was a lot of profit booking as well.
Following the global takeover of Castrol Plc by BP Amoco, the parent had hiked its holding in Castrol from 51 per cent to 71 per cent.
Analysts said the company's fundamentals have not changed, and in fact prospects could worsen with the drought conditions, and threat of a rise in crude oil prices if the US decided to take some action against Iraq.
