The Reliance Energy (REL) was the biggest loser among Nifty scrips last week. The scrip crashed 11.51 per cent to close at Rs 549.17, following the controversy over "ownership issues" in the Reliance group.
Six directors of REL, which is controlled by Anil Ambani, resigned en masse last week, fuelling a sell-off at the counter. Following the resignations, the scrip fell 7 per cent to an intra-day low of Rs 542.20 on Thursday, before closing at Rs 549.10, 5.83 per cent lower than Wednesday's close.
Reliance Industries holds a 41.03 per cent stake in the company which supplies electricity to Mumbai and Delhi suburbs. Some time ago, Reliance Industries had decided to postpone by two years the supply of gas to Reliance Energy for its proposed power projects in Uttar Pradesh and elsewhere.
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The stock is expected to be in focus after the company announced plans to buy out pharmaceutical companies in Spain and Italy. The company recently signed a strategic alliance with the $460 million Italian company Zambon group. The company, which had acquired 100 per cent stake in Alpharma SAS in France last year, will also act as an outsourcing partner for pharma majors with the global outsourcing market pegged at $25 billion. It has been on a acquisition spree in the past few years. During 2001, the company acquired German Remedies, while in the very next year it acquired Banyan Chemicals.
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The shipping scrip touched an all-time high of Rs 897.45 on Tuesday. For the week, the stock gained 13.20 per cent before closing at Rs 855.55. According to market watchers, strong quarterly numbers and talks of a stock-split generated buying interest at the counter. Mercator Lines has decided to split its equity shares of paid-up value of Rs 10 each into 10 shares of Re 1 each. Shipping sector stocks have been running high in the recent past on the back of buoyant freight rates. Freight rates are ruling firm on account of a surge in demand for oil from China. Most shipping companies have reported robust results in the past three quarters. Mercator's net profit jumped 276 per cent in the second quarter to Rs 31.63 crore.
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The stock of SRF Polymers shot up 34 per cent last week before settling at Rs 60.30. Activity at the counter was boosted by a 'buy' recommendation by a leading domestic research firm. On Wednesday, the scrip had closed 20 per cent higher at Rs 81.40, a 52-week high. Volumes at the counter have seen a big spurt last week. SRF Polymers manufactures industrial synthetics, coated fabrics, belting fabrics, polyester films, refrigeration gases and pharmaceutical intermediates. It is expected to benefit from the imposition of anti-dumping duty of Rs 30 per kg on import of nylon tyre cord fabrics from China. The company is also into pharmaceutical contract research and manufacturing.
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