| Early week indications were that 7,000 was just a matter of time - 'one big hit away', to use a cricketing parlance. The markets resembled a Sehwagian innings in those early sessions, with the Sensex chugging along nicely towards its destined peak.
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| But alas! The fate that awaited it was similar to the one which awaited Mr Tendulkar at Mohali. The record was well within striking distance, but in the end it was not to be. The sell-off later in the week dragged the index well below the 6,900 levels; 7,000 and century number 35 can wait for the time being.
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Call on Pricol
The talk is that with the markets at an all-time high, it is increasingly becoming a stock picker's market, if not already. With almost all the well-known stocks trading at astronomical prices, the poor retail investor is left wondering which stock to pick.
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| Following the trading instincts of fund managers may be a better idea in such a scenario. One desi fund - Tumble Ton Fund - picked auto ancillary stock Pricol, buying 7.9 lakh shares at Rs 52.98. Pricol is not a run-of-the-mill stock. It is the largest maker of instrument panels for vehicles in the country, with a market share of 42 per cent.
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| It also has a portfolio of almost 60 products and supplies to nearly all big auto companies. The export part of the story is what is firing Tumble Ton's interest.
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| The company's exports, which stood at Rs 40 crore in FY04, are expected to double by the end of FY06. And here's the catch. Pricol is said to enjoy a 20 per cent cost advantage over its competitors in developed markets. Can't fault Tumble Ton's logic. Can you?
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Going hard at Wockhardt
Reliable Fund was also in action. The fund bought more than 9.5 lakh shares of pharma scrip Wockhardt at Rs 370.25. And guess who the seller was? A holding company of the promoters themselves, who dumped 10 lakh shares.
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| Prima facie, the fund seems to have made a good decision. That is if you go by what analysts are saying. Uncle Sam had upgraded the pharma stock to 'overweight' based on their expectation of earnings momentum in FY06 on account of multiple triggers and also inexpensive valuations.
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| A leading domestic brokerage, too, has taken up the story and has reiterated its 'outperformer' rating in view of the 31 per cent CAGR expected in profit in the next couple of years.
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In other news
Castro Fund, all ready to launch their Indian AMC later this week, sold one lakh shares of Mastek at Rs 382.81, while Mr A B Amre bought 2.5 lakh shares of BSEL Infrastructure Realty. Not that Jeweller has been sitting idle, as is clear from its 9 lakh Rain Calcining buy at Rs 28.70.
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| Meanwhile, a domestic brokerage has noted that they expect a re-rating of pharma scrip Surya Pharma over the next one-and-a-half years. This prompted one 'emerging' frangipani to buy 1.9 lakh shares at Rs 132 levels. The scrip has already risen by more than 215 per cent in the past year. Better late than never. |
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