Focus Shifts To Fed Cut

The markets are in a state of animated suspense. The much-awaited US Federal Reserve rate hike was to come later in the day, much after the markets had closed. As a result, participants are hedging their bets for now. This was reflected in the narrow rangebound movement in pivotals yesterday.

Talk of divergence between Nasdaq and the local bourses have ebbed for the moment. And apart from the Fed, the other thing spawning debate is the Morgan Stanley Capital International index recast. Any dramatic reduction in exposure to India due to this could cause a lot of distress to diehard bulls.

 

Punting on Nirma

Nirma has caught the attention of punters after a long hiatus. Speculators feel the benefits of backward integration are now being reflected in the improved financial performance.

The Salesman/ Saleswoman further adds that though the return on net worth will remain low for a couple of years on account of the equity dilution, the return on capital employed will improve from 21.6 per cent to 30.6 per cent in the present financial year.

He/ She further adds that the positive cash flow in the coming years coupled with better working capital management will enable Nirma to reduce its gearing and move closer towards a debt-free status.

Satyam entices

Satyam has again caught the fancy of institutions and speculators, alike. During the last couple of trading sessions, Jordan has lapped up 80,000 shares of Satyam for one its prominent off shore clients and Universal Banking bought another 50,000 shares.

Big Daddy is also providing support at lower levels. A reflection of this phenomenon was its decision to purchase 50,000 shares of Infosys.

Silver Bull surmon

The Silver Bull feels that India over the last few years has witnessed a lot of transformation in its corporate sector. However it feels that large investors and institutional firms need to play a more proactive role in the area of corporate governance. It all sounds like a rich, wise man talking.