Select stocks reached a fresh 52-week high on Wednesday despite the benchmark indices Sensex and Nifty opening flat and drifting into negative territory. State-run energy major GAIL (India), private sector lenders Yes Bank and Kotak Mahindra Bank, and NBFC L&T Finance Holdings fell from their new highs and were trading with either losses or marginal gains at around 12.40 pm on the BSE.
Yes Bank hit Rs 1,473.30, Kotak Mahindra Bank (KMB) Rs 839.75, L&T Finance Holdings Rs 121.45 and GAIL (India) Rs 534.40.
The state-run energy major had declared 85 percent interim dividend and a bonus issue of 1:3 (1 share for every share held) a few weeks ago. The record date for bonus shares is March 11 and the shares will be trading ex-bonus from Thursday (March 9).
KMB shares spurted for two reasons: A block deal involving 27.6 million shares though the details of the concerned parties are not yet known. In a filing, the private sector lender also said that its board has approved a resolution, subject to statutory approvals, to increase the ceiling limit for investment by foreign investors (FIIs, FPIs, QFIs) and NRIs in its equity from the current 40 percent to 42 percent.
Polling for the seventh and last phase of Assembly elections in Uttar Pradesh is underway for 40 seats spanning seven districts, including Prime Minister Narendra Modi's Varanasi constituency.
A lot hinges on the results that will be declared on March 11. The BJP winning UP elections will serve as a positive trigger, while a poor show will dampen sentiments for investors, at least in the near-term.
