Why are shares of India Cement soaring right now? — clarified
The last two sessions have seen a roughly 26% increase in India Cements shares.
Current stock market: Over the past two sessions, shares of India Cements have been rising. The cement stock has been climbing since Wednesday after closing at ₹229.38 each on the NSE on Tuesday. The share price of India Cements saw an upward gap at ₹285 per share when it opened today and reached an intraday high of ₹288.88, marking a gain of about 26% over the previous two sessions.
Experts in the stock market said that UltraTech Cement, a firm in the Aditya Birla group, has announced plans to purchase 7.06 crore equity shares, or roughly 23 percent of India Cements Limited’s total paid-up capital. This news has caused shares of India Cements to rise. They claimed that the market is viewing this news about the stock market as a favorable development for India Cements.
India Cements share triggers
The UltraTech Cement board’s approval of stake purchasing in India Cements is the reason for the recent surge in the price of India Cements’ shares, according to Avinash Gorakshkar, Head of Research at Profitmart Securities. Dalal Street bulls became aware of the plan on Thursday after the Aditya Birla group business announced it in an exchange filing today.”
Target share price for India Cements
Sumeet Bagadia, Executive Director at Choice Broking, expressed optimism for additional gains in India Cements shares, saying, “Shareholders of India Cements can hold the stock as the stock is looking strong on the chart pattern.” The share price of India Cements could reach ₹325 in the near future. Thus, the trailing stop loss can be kept at ₹265 per share.”
Sumeet Bagadia commented, “The stock has already surged over 25 percent in the last two days,” in response to the recommendation for new investors. Thus, it is best to wait for a stock retracement. Buy-on-dips are permitted for current owners up until the stock price hits ₹265 per share.” When India Cements shares go on sale, he said, anyone can buy them for between ₹275 and ₹280.
India’s UltraTech Cement purchases a stake Cements
“The Board of Directors of the Company, at its meeting held today, approved making a financial investment to purchase up to 7.06 crore 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 up to Rs. 267/- per share,” UltraTech Cement said in an exchange filing today about stake buying in India Cements. This financial investment, which has no controlling influence, makes up about 23 percent of ICL’s equity share capital.
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