Reliance, HDFC Bank among 34 stocks seeing increasing investor interest

Market participants tend to treat several stocks like hot potatoes when there are concerns that share prices are perceived to have run up too soon. At this point, the focus is on stocks that are seeing an increase in investor interest. In the BSE500 index, 34 stocks including Gujarat Pipavav, Finolex Industries, TCS, VA Tech Wabag, HDFC Bank, Brigade Enterprises, and Reliance Industries, have seen a steady increase in trading and delivery-based volumes over the last four days.

Delivery-based volume in a stock is widely watched as it shows whether the buying interest is coming from investors who intend to hold it for a longer time or from traders who want to make a quick buck. Delivery-based trades in the cash market generally peak when the market is nearing its highs.

“A rise in volumes with delivery indicate some investors, especially institutions are accumulating a few undervalued stocks that have great growth potential,” said G Chokkalingam, founder and CEO, Equinomics Research & Advisory.

Delivery-based volumes in Gujarat Pipavav Port have increased from 53% to 81% in the last four trading sessions, with an average volume of 1.82 lakh shares. Delivery volumes in TCS have gone up from 46% to 66%, with the stock gaining nearly 4%. HDFC Bank also saw a gradual increase in delivery volumes from 52% to 62%, while for Reliance Industries, delivery volumes have surged from 39% to 60% over the same period.

The stock of TCS has rallied 19% in August, while HDFC Bank and Reliance Industries have gained 11% each.