Defensive Shot

With brokers in a rebellious mood owing to the recent changes in the trading system, the markets remained lacklustre today. The Federal Reserve's comment that the US economy will remain weak, which acted as a dampener to international bourses, also affected the domestic sentiment.

Golden oldies

The good old safe bets were being judiciously picked up by the King Kong Brokerage, which is rumoured to have bought around two lakh shares each of Bhel and Larsen & Toubro (L&T).

Bhel is being perceived as a decent defensive stock at its current valuation, though some analysts cannot make up their mind whether the government-holding is a positive or negative factor for the company.

Some think that the large government holding makes the stock a prime target for a strategic sale. The current market scenario would make such decisions more compelling and feasible, something which would not have been looked at seriously before.

Others feel that the large government holding would restrict the upsides to the stock since change would not be happening at the required pace. King Kong was also active at the L&T counter after its results presented a pleasant surprise.

Boost for Reddy's

Dr Reddy's may soon be seeing better times after its spat with Eli Lily over the Prozac issue. Indications are that the case may be decided in the company's favour, but more than that was the announcement to the effect that Novo Nordisk has roped in Novartis to partner it in its anti-diabetic drug commercialisation plans.

Dr Reddy's had earlier sold the drug to Novo Nordisk but has retained certain commitments of royalties. The scrip, though, was subdued since the good news came in much after the market closed. Some fund-buying was reported at the counter but could not be confirmed.

Savvy movements

The Savvy Fund was back trying to do what it was good at -- being a quick-footed trader in stocks which it has long-term views.

The fund was reportedly a buyer at the Sterlite Opticals counter, but having a substantial exposure to the stock the present moves could be more in the nature of a trading call with the focus on overall cost-reduction.

A few good trades could substantially reduce holding costs and most funds are trying to adopt such techniques in an otherwise bleak scenario. The irony being that, though all are positive on the bourses, the sentiment is making little headway.