Sell Syndrome

The 'Sell what you can' theme seems to have gained ground on the domestic bourses. Despite reassuring reports that foreign portfolio investors will not turn to heavy sell-offs, players turned to offloading. Some dealers feel the sell-offs could have emerged from hedge funds or the participatory notes route.

There could also be some pressure from foreign insurance funds as insurance companies are likely to take a hit in the US following the aircraft crashes.

Techno torment

Technology stocks were the worst hit on Thursday with several foreign funds discarding them like hot cakes. The lead names responsible for the savage offloading include Uncle Jam and Cap-it-all.

Also, some emerging market players were said to have sold technology stocks in general -- popularly known as basket selling. Satyam Computer was being discarded by Uncle jam.

Sources said that the redemption pressure for the fund continues and reports are that it is out to dispose off more than 20 lakh shares of Satyam. Indications are that even Infosys is under the hammer.

Infosys and Satyam faced weakness due to the impact analysis after the US aircraft crashes. Polaris rose from Wednesday's lows and retraced some of the losses, while MphasiS BFL was punished for issuing what was clearly a revenue warning. Digital was under attack facing a repeat penalty for the folly of its parent's proposed merger.

Promo plan

Balaji Telefilms, which has seen some negative impacts on account of the TRP rating fiasco, was back in action on Thursday. According to dealers, Big Bull Brokerage was active at the counter. Players are expecting some interesting developments in the near term. The company is also meeting select media persons on Friday. While not any major announcement is expected, one can always look forward for surprises.

Sour taste

Bhel had another fall due to late selling by a few US funds. There are worries about some voluntary retirement scheme provisions which would lead to lower yearly earnings for the company. Cement counters faced institutional selling on the back of concerns that fuel prices might go up due to rising crude prices.

Power is a significant component of cement manufacturing cost and an apparent power cost inflation may lower the segment's profitability. The other concern is that if government hikes fuel prices, the freight cost would go up, which would be negative for the cement industry. The impact is negative since freight cost contributes to around 15-20 per cent of the total manufacturing cost.