`The Price says itall' is a universal principle as far as stock markets go. The prices of, bynow erstwhile market favourites, clearly reveal that something is amiss.Even as stocks are getting battered beyond recognition, nobody is actuallyable to put a finger on the root cause of trouble.There are numerous theories, which in fact only worsen matters further byincreasing the uncertainty. Prices have been tumbling, that too on the backof good volumes. So where are the volumes coming from?
One-Man-Army does not seem to be interested in supporting his favouritecounters for the time being. No fund manager is willing to touch momentumstocks with a barge pole. Retail investors are shying away from the counterafter repeated setbacks. There is a limit to which the bravest of punterswould try to average their costs. So who is creating volumes at thesecounters. Is it circular trading, optimistic retail investors, adventurousfund managers or some powerful entity, which has a larger game plan in mind?
Nobody knows.
It's a steel Amidst the carnage at technology counters, the Tisco scripmanaged to hold fort. Of course, the latest Railway Budget was hardly infavour of the sector as a whole. And expectations are not high as far as theUnion Budget is concerned. But Babu Moshai seems to be very impressed aboutthe improvement in operational efficiency of the company. He is reported tobe very active at the counter, though it remains to be seen if he canconvince fund managers to share his view point. While Babu Moshai may haveset the ball rolling, institutional participation is essential to maintainthe momentum.
The bridegrooms
Certain stocks have earned the title of being Budget favourites. That is,these stocks are considered as safe bets immediately before and after thebudget. HDFC seems to be one of them. Of course, every Union Budget in thepast has always had a mention for the housing sector. And invariably,punters flock to the HDFC counter whose fortunes are linked to that of thesector. And then, there is also the talk of increasing the FII limit from 40per cent to 49 per cent. Institutional buying at the counter is yet to beconfirmed although prices testify to some interest.
No respite
Every (buying) action has an equal and opposite (selling) reaction. Perhapsthat could sum up the state of affairs at the Satyam Computer counter. OnMonday, close to 1.3 million shares were reported to have been picked upbetween the Kind Words Benson and Numero Uno brokerage. But today, close to2 million shares are reported to have been dumped by an unconfirmedinstitutional player, sending prices into a tailspin.
Today, the Why care brokerage is reported to have been a buyer at the NIITcounter, but to of little avail. Similarly the brokerage is also reported tohave made some bargain purchases at the Aptech counter which continued torace southwards.
Santosh Nairsantoshnair@myiris.com
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
