Sesa Goa reverses early losses, gains 2%

Iron ore producer and exporter Sesa Goa on Friday swung from its morning losses and closed over 2 per cent higher in a volatile trade on the bourses, adding over Rs 516 crore to its market valuation.

After tumbling over four per cent in morning trade in what the market analysts described as a knee jerk reaction to the company's disappointing first quarter numbers, the stock closed up by 2.14 per cent at Rs 284 a share on the BSE and 2.95 per cent at Rs 286.25 a share on the NSE.

This led to the market valuation of the company rising to Rs 24,682 crore from Rs 24,166 crore yesterday. Over 13.22 lakh shares exchanged hands on the BSE and nearly 50 lakh shares got traded on the NSE.

Commenting on the stock movement, Ashika Stock Broking's research head (Equities) Paras Bothra said, "The scrip was down in the morning owing to weak numbers, but after the bad news was factored in, the stock witnessed an uptrend because buying emerged at low levels."

Sesa Goa on Thursday posted a consolidated net profit of Rs 840.59 crore for the first quarter ended June 30, 2011, from Rs 1,301.79 crore in the year-ago period. The results were not comparable consequent to the merger of erstwhile subsidiary Sesa Industries with the company, Sesa Goa said.

The results were announced after market hours on Thursday.