Fed By Fed
Domestic bourses survived the Nikkei index's fall to a 17-year low on Thursday as Alan Greenspan announced a 25 basis point cut in US Federal Reserve's rates.
The Fed had also hinted at the possibility of a further rate cut at its next meeting on October 2. However, one can also take the future indication of another cut as negative as it can also mean that the US economy may be in for further trouble. But Indian markets pay more heed to present than future and Thursday is a classic example, dealers said.
In sell mode
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Big Daddy was a seller at the Satyam Computer and Reliance Industries counters, say market players. Though the Golden Fund had upgraded the earnings of Reliance on Thursday, Big Daddy does not seem to be impressed. While the supply overhang from Big Daddy will continue to affect the stock in the short-term, there is not much the risk of downsides as the maximum buy-back price on the stock is Rs 303.
Tough climbing
Castrol, after going through a weak patch, witnessed a marginal rise on Thursday. This has led to speculation over the Securities Appellate Tribunal (SAT) hearing on the interest component of its parent's open offer. No decision was taken at the SAT hearing on August 16 neither was the date of the next hearing. The situation remains the same and nothing has changed as yet.
Indications are that institutional selling seems to be over for the time being which has helped the stock to register some gains.
Indications are that Cap-It-All had been discarding Castrol as well as Bajaj in the last trading session. Cap-it-all has been a regular seller at the Castrol counter and it looks like there is no interest in the interest component of the open offer.
Cap-It-All sold 80,000 shares of Castrol and 1.5 lakhs of Bajaj Auto. However, Castrol is also seen attracting some other funds such as Pioneering Fund and the Savvy Fund manager.
Cap-it-all also sold 1.75 lakh of Bajaj. The bike segment has been doing very well for Bajaj, as it is concentrating on the new launches to increase the market share.
Sweet Pill
Ranbaxy Universal Banking interested on Tuesday and was seen picking up 5 lakh shares. Asasbe and Big Daddy were offering their holdings in Ranbaxy. Indications are that Asasbe sold 2 lakh shares while Big Daddy dropped one lakh shares.