Stock market today: India Cements shares have been on an uptrend for the last two straight sessions. After ending at ₹229.38 apiece on the NSE on Tuesday, the cement stock has been rising since Wednesday. Today, India Cements share price opened with an upside gap at ₹285 per share and touched an intraday high of ₹288.88, recording a rise of around 26 percent in the last two sessions.
According to stock market experts, India Cements shares are rising as Aditya Birla group company UltraTech Cement has declared buying 7.06 crores equity shares, which is around 23 percent of the total paid-up capital of the India Cements Limited. They said that market is taking this stock market news as a positive development regarding India Cements.
Speaking on the reason for India Cements share price rally, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “India Cements shares are rising because of UltraTech Cement board has approved stake buying in India Cements. The Aditya Birla group company has declared the move in its exchange filing today, which has attracted the attention of Dalal Street bulls on Thursday.”
Expecting further upside in India Cements shares, Sumeet Bagadia, Executive Director at Choice Broking, said, “India Cements shareholders can hold the stock as the stock is looking strong on the chart pattern. In the near term, India Cements share price may touch ₹325 apiece. So, one can maintain the trailing stop loss at ₹265 apiece mark.”
On the suggestion to fresh investors, Sumeet Bagadia said, “The stock has already surged over 25 percent in the last two days. So, one should wait for some retracement in the stock. Existing shareholders can maintain buy-on-dips until the stock exceeds ₹265 apiece.” He said that one can accumulate India Cements shares once it becomes available in ₹275 to ₹280 range.
In an exchange fiiling today, UltraTech Cement informed Indian stock market exchanges about stake buying in India Cements saying, "The Board of Directors of the Company at its meeting held today approved making a financial investment to purchase upto 7.06 crores equity shares of The India Cements Limited, a company incorporated under the Indian Companies Act, 1913, having its registered office at Dhun Building, 827, Anna Salai, Chennai 600 002, (“ICL”) at a price of upto Rs. 267/- per share. This non-controlling financial investment constitutes around 23% of the equity share capital of ICL."
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