Street signs: Market trend turns weak, Laurus Labs stock rises, and more

Market trend turns weak

The benchmark Nifty declined 2.4 per cent last week to end at 11,642. After a sustained bull run, the markets are expected to enter a turbulent period. According to technical analysts, the Nifty is precariously positioned. “The Nifty on the weekly chart has formed a long-bear candle and is at the edge of significant trend line support at 11,600. The lower support of 11,600-11,550 is going to be crucial for the bulls to hold on their defence. A decisive move below this support could open further weakness down to 11,200 levels in the next few weeks,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Sundar Sethuraman

Insider may get top job at HDFC AMC

HDFC Asset Management Company may select an internal group candidate to replace Milind Barve, who has agreed to stay on as managing director until January 31, 2021. While the names of a few senior executives from rival mutual funds have been doing the rounds, people in the know said the replacement will most likely come from the group. Other likely contenders include the boss of a rival insurance firm and an internal candidate from the AMC.

Ashley Coutinho

Small investors board Laurus’ ship 

Pharmaceutical company Laurus Labs has seen a near threefold increase in its retail shareholder base amid a sharp jump in its stock price. At the end of the September 2020 quarter, the company had 125,095 individual shareholders, up nearly 2.9x from 42,994 at the end of June 2020 quarter, the data provided by the BSE shows. Since July 1, shares of Laurus Labs have soared more than 3x. “Many small investors are buying into the stock after the eye-catching rally. One has to be careful given the surge in valuations,” said an analyst at a domestic brokerage.

Sundar Sethuraman