Equity Alert: Videocon Appliances up on report co to raise prices

[K.Karthik Raja]

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Equity Alert: Videocon Appliances up on report co to raise prices
MUMBAI--11:30AM--Shares of consumer durables major Videocon
Appliances
were up 20% at 36.15 rupees and locked in upper circuit on the back of
a
report in The Economic Times newspaper that the company intends to
hike
prices of its products by 5-10% shortly.
Over 1.24 mln shares have been traded today.
The report quoted Chairman and Managing Director K.R. Kim saying
that the
company will raise prices in two weeks, led by rise in input costs,
particularly of steel, copper, and oil.
Other consumer durable makers such as LG Electronics and Whirlpool
are
also planning to effect price increases.
The share may have also found support from talk that the company
is eyeing
acquisition of General Electric Co's appliances business, said
dealers.
Technical analyst Gurudatta Dhanokar of Almondz Securities
recommends a
'hold' for those already invested in the stock. "The stock faces next
resistance at 44 rupees, which can be achieved in a day or over a
month.
Support is at 32 rupees," he said. (Manuja Pandey)
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