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

  • Right to reveal

    Delhi is India’s first state to announce a scheme for witness protection. But what about the witnesses in other states?

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Urs Schoettli

New masters of the Financial Times

A few days ago, Japan’s leading financial daily Nihon Keizai ...

Anuja Sharma

Focus mindfully to get the result

Have you ever tried to light a fire using the ...

Gautam Gupta

Our fashion schools need to notch it up

“Creativity is the key to success and primary education is ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture