Heavy borrowing cost on Bhel signals aggressive shorts

Tags: BHEL, Companies
The high costs charged for lending and borrowing on Bharat Heavy Electricals Ltd indicate shorts are building up, analysts say.

The average lending fee on Bhel in the NSE was at 2.54 rupees a share on Thursday, which on an annualised basis works out to 21.05 percent yield for the lender, NSE data shows.

Yogesh Radke, head of quantitative research at Edelweiss Securities Ltd, said interest on Bhel under the securities lending and borrowing scheme (SLBS) has surged.

"Under the SLBS mechanism, Bhel has witnessed active interest from borrowers in the past six-seven months. The borrowing happening at an average cost of 12-20 percent per annum indicates short aggression in the counters," Radke said.

Bhel shares were down 0.4 percent at 11.49 am.

EDITORIAL OF THE DAY

  • Enhanced allocations are needed for research to ‘Make in India’ for India

    Even as India flaunts its ambitious ‘Make in India’ initiative from February 13, it spurs several questions.

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Urs Schoettli

The importance of Indonesia

A few weeks ago, the wo­rld was shocked by a ...

Rajgopal Nidamboor

Try to awaken the archaeologist within

Our mind is far ahead of René Descartes’ famous maxim, ...

Bubbles Sabharwal

Social media versus real life

It’s amazing how social media brings out the best side ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture