The markets, at present, seems to be influenced more by rumours than fundamentals with vested interests having a field day. The latest rumour on Monday had it that King Panther was getting active. A rather illogical assumption considering the fact that surveillance agencies are hot on the King Panther's trail.
These rumours are probably being propagated by a section of the market to use upsides in the momentum counters.
Fresh attraction
Eveready Fund is reported to have been a major buyer in NIIT shares. Despite the company having reported a disastrous performance for the June quarter, the fund is believes that the performance is an aberration. Moreover, given the fact that it has lost considerable value in the recent times, this is the most opportune time for long-term investing in such software training brands. Slightest recovery in the software sector should have a positive impact on the education business leading to better financial performance.
Digital age
The Savvy Fund Manager is rumoured to be smitten by Digital Equipment after it flirted with the stock over the last couple of weeks. Now with the sentiment for tech sector having improved after the Numero Uno brokerage upgraded the chip sector abroad, the Savvy Fund Manager is enthusiastic about not missing the bus. Digital had displayed a good June quarter performance. Its non-Compaq business saw strong growth of over 40 per cent sequentially. Compaq, the parent of Digital accounts for about 85 per cent of business revenues and this is stable business.
Castrol
The ruling of the Mumbai high court regarding the open offer by BP Amoco for Castrol India is expected on Wednesday. The markets regulator has directed BP Amoco to make an open offer at Rs 350 against its offer price of Rs 311 and the markets are speculating that the court ruling might favour the Sebi. However, there is a possibility that BP Amoco may appeal to the Supreme Court. At Rs 311, BP Amoco would have to shell out Rs 768 crore for a 20 per cent stake and Rs 864 crore at Rs 350.
East is the best
East India Hotels (EIH) is again back in the news. There were rumours that ITC was interested in picking up stake in East India Hotels. Last year too, some ITC group investment companies had lapped up 5 per cent shares of EIH. The Oberois hold 39 per cent, while institutions, mutual funds and FIIs have about 33 per cent stake. Given the situation it looks unlikely that ITC can launch a hostile bid unless it can get the persons acting in concert with EIH on its side, analysts said.
Sterlite Optical
It was a rude shock for investors. Sterlite Optical's buyback proposal at Rs 250 per share got the market price of the stock spiralling downwards on Monday as the expectation was that it would be around Rs 300. Moreover, the limited buyback rider has also turned out to be a dampner.
Tailpiece
Big Daddy is reported to be gradually but steadily offloading its holdings in Infosys Technologies and Satyam Computer Services. Since the markets are displaying a positive trend, Big Daddy deems to fully utilising the opportunity.
