Weekend Brainstorming Helps

Market-makers spent the last weekend closeted in brainstorming sessions and the results were visible for all to see on the first day of the new week. Though valuations continue to be an esoteric exercise, some consensus seems to be emerging on this score. The more brash section of participants is of the view that since most ICE (information technology, communications and entertainment) stocks have seen massive erosions from their peaks, it is a good time to re-enter. The pick-up in select ICE counters yesterday indicates that this section called the shots yesterday.

However, a minority _ but weighty _ section feels that like the last time round, every rise could attract a fresh round of selling. In the absence of strong signals in either direction, the suspense should continue till US Federal Reserve chairman Alan Greenspan reveals his mind.

 

With opinion makers preferring to hedge their bets, one thought it was a good time to bring ASK ME into the picture.

ASK MEspeak

The research house believes that the toothpaste major Colgate Palmolive has got its act together in the oral care market. The view is that the initiatives by the new management team, bolstered by the R&D set up will help the company gain market share and improve operating margins. Figures suggest that even today only 35 per cent of Indians use modern dentrifice. The logical conclusion is that the potential for industry growth is huge. Colgate's rural market share has increased during the last three quarters. Further there are various distribution initiatives on the anvil, which could result in further consolidation of Colgate's leadership.

Babu Moshai emissary

The rather dramatic swings in several speculator favourites has caused an emergence of distress signals from different quarters. Even the big punters of Calcutta have been caught flat footed. Lots of them have landed in Mumbai, hosting meetings in guest houses and plush restaurants. While speculation continues to be rife about the purpose of the appearance, brainstorming with institutional investors is believed to have been high on the priority list.

Big Daddy reacts

Worried that a sustained fall can be a huge dampener on sentiments, Big Daddy decided to take a more pro active role yesterday. Big Daddy is believed to have pumped in Rs 100-odd crore yesterday. A buy of 50,000 shares in Satyam was one of them. However sustained FII selling is spoiling the Daddy's party for now. With latest available figures suggesting FII sales of Rs 308 crore on Friday, the extent to which Big Daddy can determine sentiments is open to debate.

Some more support

Uncle Sam is said to have emerged as a bottom fisher yesterday. With talk about Zee Telefilms been included in the MSCI Index Re-surfacing, any decision of the Fund to pick up shares of the same should come as no surprise. Savvy also joined in, as reflected in its decision to lap up 60,000 shares of Satyam.

ICE deals

A strong product company, Visualsoft has attracted the attention of the Scud Fund. The fund which had plans of pumping in Rs 1000-odd crore into the Indian market struck a block deal at this counter last week. One of the few aggressive FII funds on the buy side during the recent sell off, Scud is reported to have picked up 80,000 shares of Visualsoft.

Punter's diary

The rather dramatic volatility of the new millennium is causing the Punter to update his diary rather quickly, to say the least. GLTS (go long then short) is what most punters have traditionally been most familiar with. However, the new credo on the Street is GSTL (go short then long). However, intra-day volatility is creating bottlenecks for the new credo to be put into use.