Fed Bank enthused by bonus declaration

DALAL STREET SPIKES

While, Tisco's bonus announcement failed to impress the investors, Federal Bank's liberal bonus issue fueled its stock price in today's trading. The stock zoomed 7.19 per cent to close at Rs 354.20 after touching an intra-day high of Rs 363.75.

The counter was very active and witnessed volumes of 8.12 lakh shares at the BSE. Market analysts said, Federal Bank was among the few gainers as the gain was purely news-driven on back of bonus announcement.

The stock bounced back from lower levels in the last few days, albeit in a volatile trade. From a low of Rs 225.90 on May 17, the stock surged 45.5 per cent in a few days to Rs 328.75 on May 26.

In fact, the rebound in the stock came ahead of the bank's announcement after trading hours on May 27 that its board would consider a bonus issue.