Larsen & Toubro (L&T) soared 5.87% to Rs 860, extending recent gains on strong buying support.
Shares of Larsen & Toubro (L&T) jumped 11% in five consecutive trading sessions to its current trading price of Rs 860 on Monday, 13 April 2020 from its recent closing low of Rs 774.75 obtained on Wednesday, 1 April 2020.
The recent gains were triggered by hopes that L&T could see an increase in weightage on MSCI indices. On 3 April 2020, depository institutions CDSL and NSDL notified changes to the foreign investment limits in individual companies, raising the same to their respective sectoral caps. Higher foreign investment limits in Indian companies would lead to MSCI (Morgan Stanley Capital Investment) to raise Indian companies' weightage on its indices.
Meanwhile, L&T's board on 9 April approved long-term borrowing of up to Rs 9000 crore, either through external commercial borrowings, term loans, non-convertible debentures or any other instrument as may be appropriate.
Further, on 9 April, L&T announced that the power transmission & distribution business of L&T Construction bagged 'major' orders in India and abroad. As per the L&T's classification, the valuation of the 'major' order stands between Rs 5,000 to Rs 7,000 crore.
On a consolidated basis, the company's net profit rose 15.21% to Rs 2,352.12 crore on a 5.87% rise in net sales to Rs 36,242.68 crore in Q3 December 2019 over Q3 December 2018.
Larsen & Toubro is an Indian multinational engaged in technology, engineering, construction, manufacturing and financial services.
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