Selling, Margins Play Spoilsport
Interesting as it may sound, after having touched a new high the Sensex invariably begins to slide within the first 30 minutes of trading. Yesterday, too, the BSE-30 Sensex opened almost 196.67 points higher at 6,130.23 at 09.55 am against its previous close of 5,933.56. Then in barely two minutes (09.57 am), it zoomed to a record of 6,150.69. However, within just 28 minutes of trading the benchmark index fell by nearly 74 points to 6,076.69 (by the time domestic and foreign fund managers take a decision to sell the stock). Thereafter, the Sensex gave way and the index continuously dropped every 30 minutes on continuous selling pressure across all major sectoral stocks like cement, pharmaceuticals, FMCG, auto, steel and cement.
Sebi's decision to enforce an additional 5 per cent margin on top ten counters also had a significant impact on the bourses. The Sensex finally closed at 5,924.31 (marginally higher than the intra-day low of 5,923.17 points).
Gaining momentum
Buying interest at the BSES counter is spreading fast as more institutional players are entering the fray. The treasury arm of the US-based bank continues to be a regular buyer at the counter even as he is finding company in other fund managers too. A little over a lakh shares are reported to have been picked up yesterday even the market was rife with rumours that the company was in the process of buying out a portal.
Wrong number
Close to 7 lakh shares are reported to have been dumped at the MTNL counter as the seller party took full advantage of the firm opening of prices. A couple of weeks back, the scrip had run up non stop from Rs 180 to Rs 324 and then fallen back till Rs 255 levels. After consolidation, the scrip once again moved up one way till Rs 390, before giving a correction signal yesterday. Till aggressive buying interest surfaces in the next couple of trading sessions, the supply overhang could restrict a sharp upsurge in prices. Overall outlook on the scrip still remains positive considering that a NYSE listing is in the offing.
Lone ranger
Even in a falling market, the ABB scrip managed to end the day on a strong note, in fact at the upper end of the circuit filter. The Question brokerage (just ASK) is reported to be a steady buyer at the counter. Currently, it is more of retail and high net worth investors, who are buyers at the counter. Not a bad bargain considering that the company is planning an increased software thrust as also the fact that the scrip available close to its 5-year low prices.
For old times sake
One of the surprise gainers in yesterday's weak market was the Videocon scrip. In the past this scrip has not really been a favourite with fund managers. In the last six to eight months, bulls at the counter have been trying their best to give a leg up to the prices. However the scrip has always failed to sustain at higher levels. One possibility could be that players who are still stuck with the shares purchased prior to the payment crisis, are selling at every rise.
Bank on it
The race between HDFC Bank and SBI is not over yet, with both players still running neck and neck. While buying interest at the HDFC counter has subdued of late, fresh buying interest seems to be emerging at the SBI counter. A little over a million shares are reported to have been picked up yesterday by a foreign fund.
Remains to be seen if this buying interest is good enough to generate follow up buying from the smaller players. A couple of weeks back, close to 2 million shares were picked up over a span of 4 days. However, they were not good enough to boost prices.