Players Looking Inward For Leads

The bounceback of the past few days has surprised a great many. But the fact that it is on the back of unimpressive volumes does worry a few. The contrarian view on this is that this is a sign of the market going through a consolidation phase. Votaries of this line feel that with most of the weak bulls having exited, the scope for further panic sales has been substantially reduced.

Interestingly these days, participants are focussing on more on local matters than at overseas markets for inspiration and direction.

Satyam seduces Scud

The Scud Fund has turned into an aggressive believer in the Indian software story. Proof of this lies in its purchases. On the other hand, Satyam continues to skyrocket, leaving the ones who exited the counter early counting their lost notional gains. The Scud Fund is a strong believer in the future growth of Satyam. Though the level of its purchases are a matter of speculation, it is believed to be well over 1,00,000 shares.

 

The value hunters

Mr Big has emerged as the a big value hunter during the recent turmoil. This week itself the fund has purchased 75,000 shares of Infosys Technologies, providing good momentum to the stock. The fund is also believed to have lapped up over 50,000 shares of Hindustan Lever, but the scrip's rise was curbed by Uncle Sam's sales at the counter.

Another possible value-pick deal was Uncle Jam's decision to buy 2,00,000 shares of Zee Telefilms, just as the ICE (information technology , communications and entertainment) sector resurgence is being registered.

The Pricey Fund is also said to have picked up a good amount of software scrips, though the names and quantities could not be confirmed. Among the deals which could be confirmed was Pricey's decision to lap up 75,000 shares of Global Tele-Systems.

SAB TV in focus

Small Daddy's research team is bullish on Sri Adhikari Brothers Television Network Ltd (SAB TV).The rationale SAB TV is one of the major content suppliers for cable TV and Doordarshan. It also cites the fact that the media content library has high recycle value.

The research house believes that SAB TV's strategy of launching a Hindi channel of its own has a high probability of succeeding because the company has a proven record of good content creation. However, it does sound a warning note by saying that the general entertainment Hindi channel would bring pitches it in direct competition with established players like Zee, Sony and Star Plus.

SAB's further plans include an initiative to improve its product mix by venturing into telefilms and music videos. The market outperformer recommendation was at Rs 545 and the stock firmed up yesterday to close at the Rs 440 levels on volumes of 29,000 shares.

More ICE deals

The reasons for the consolidation of ICE stocks are many, but the impact of the buying momentum is slowly getting reflected. Himachal Futuristic Communications announced excellent results bringing cheer on the face of Jordan's client who has bought 3,00,000 shares of the same.

The Dutch Brokerage has been the beneficiary of several of its clients taking a relook at the ICE sector.

The broking house has executed quite a few ICE deals this week, the more prominent among them being the purchase of 1,00,000 shares of DSQ Software and 1,50,000 shares of Global Tele-Systems.

Tailpiece

Less than a decade ago, finance ministers did not blink when the capital markets showed massive gyrations. But market participants are glad today that the current incumbent realises the importance of a vibrant capital market.