A Vat Regime Seems Nearer

With every passing day the threat of war seems to be getting bigger and bigger. Yesterday's mid-session crash was a direct outcome of the escalating tension at the border. Meanwhile, rumour-mongers played havoc with bourses believing that the situation is really getting out of hand. Most players prefer sitting on cash rather than watching their investments erode.

The net outstanding positions in the market has come down to Rs 1,071 crore, which when compared to previous Tuesday's figure is a drop of Rs 130 crore.

Believe in the best

Big Daddy's new-found love for BPL continues even as the stock crashed to Rs 425 levels from the high of Rs 500. Even on Monday, the fund is reported to have picked up close to 3 lakh shares of the company. What comes as a big surprise to the market is the sudden change in Big Daddy's attitude. Less than a year ago the same stock was available at nearly half the prevailing rate. However, since the stock continued to be at the bottom of the price band for days on end, the retail investors could not sell the stock and, hence, they were in the lurch. The poor retail guy would now be cursing his luck for dumping the stock at throwaway prices.

Having a ball

The Silent Operator seems to be having a gala time if one were to look at the stocks that he has picked in the recent past. It may be recalled that Silent Operator had turned bullish at the SKF Bearings counter and yesterday the stock hit the upper end of the price band. He is reported to have turned bullish two other stocks _ Ballarpur Industries and Thermax, which has been a big favourite with him.

Market players are of the view that Ballarpur Industries may benefit from the increase in pulp prices. The firming up of pulp prices took place because some of the south-east Asian countries, that traditionally have been net exporters of pulp, have suddenly turned importers. Also, the pulp futures too are ruling firm indicating that the price of pulp may not come down in the recent future.

Perhaps, the Silent Operator sensed this early and cornered huge quantities of Ballarpur Industry in recent times. The volume at this counter has steadily moved up as a result. Though some buying by Uncle Sam is also reported, this could not confirmed from sources.

M&M's charge

Even as most other stocks in its category either declined or remained stagnant, the Mahindra & Mahindra scrip seems to be having a dream run. The buzz on Dalal Street is that the company has bagged a huge defence order following the tension on the border. It is learnt that the company has bagged a big order for supply of Jeeps.

The other reason for the sudden trading interest at this counter is the recent announcement made by the company officials made at an analysts' meet. The company officials stated that in the near future M&M plans to form a holding company.

Mahindras are expected to transfer their holding in Mahindra British Telecom, a profitable joint venture, to this holding company. M&M also has two other 100 per cent subsidiaries which are also engaged in the manufacture of infotech gadgets. The company plans to transfer its holding in these wholly owned arms to the holding company. At a later date M&M also plans to list the shares of this holding company.

Essar Oil spurts up

On an otherwise dull day, Essar Oil witnessed increased trading activity. It witnessed a combined volume of 4.6 lakh shares and the stock touched a new 52-week high at both the bourses.

While most other commodity stocks came under some selling pressure, Hindalco moved up backed by some sustained buying by a London-based fund. It is learnt that 60,000 shares were picked up by this fund. As a result of this, the net outstanding position at the end of yesterday's trading came down to 1.9 lakh shares as against 2.3 lakh shares as on Monday. {color:Black; text-decoration:none} a:hover {color: '#CC0000'; text-decoration:none} -->