Mumbai: Promoters of nearly three dozen midcap companies bought shares in their own firms from the open market in the past month, underscoring optimism over the economic recovery. Aditya Birla Capital, Gabriel India, Polyplex Corporation, Motilal Oswal Financial, Alembic Pharma, Vardhman Textiles and Mastek are among the companies which have seen promoters raising their stakes.Big shareholders including founders raising stakes in companies is often considered a positive indicator of their prospects. The logic is promoters are usually most knowledgeable about their firms’ prospects.For instance, IGH Holdings, a firm owned by Kumar Mangalam Birla, has bought 6.2 lakh shares of Aditya Birla Capital worth 74 crore from open market since February 26. The stock has rallied 38 per cent in the last one month. BofA Securities in a note last week said the company’s profit will double in two years.Similarly, promoters of Gabriel India, a leading player in the domestic suspension space, have bought over 31 lakh shares from the market. The stock, according to analysts, offers a good play on India’s electrification drive due to its presence with leading electric 2-wheeler manufacturers.81384391“Promoters increasing own stake in a tough business environment shows their commitment to their own business,” said G Chokkalingam, CEO, Equinomics Research & Advisory.“The availability of easy and cheap money both in India and in the overseas markets may have given some promoters the opportunity to increase their stake in their own companies.”Many company promoters have been increasing their holdings of late with the government taking measures to revive the economy and businesses after Covid-19-induced disruptions.Founders of Alembic Pharmaceuticals have increased their stake in the last two quarters. In a note, HSBC said the company is set to monetize investments for the US market while recovery in India sales supports the build-up phase for the US.Vardhman Textiles’ promoters have also bought shares from the open market. The company’s yarn business is witnessing strong demand while demand recovery for the fabric segment has picked up pace in the December quarter. The management recently said that profitability in the yarn business has improved owing to higher yarn spreads, the impact of which could be visible in ensuing quarters, said analysts.The other company in which promoters hiked their stake include Motilal Oswal Financial Services, which is among the beneficiaries of the revival in the stock market amid the lockdown.