Strategic Purchases

HDFC Bank was back in the limelight, with Credit Lyonnais Securities reporting two major negotiated deals at the counter. One deal of 1.17 crore shares was reported on the trade-to-trade segment of the NSE at Rs 61.50 while on the BSE, the FII's brokerage outfit reported a deal of 8.8 lakh shares at Rs 60.66.

Although the FII refused to divulge any further details on the deal, the market was agog with rumours that the deal was reported on behalf of ChaseManhattan which picked up over 14.9 per cent of the bank's equity.

The deal follows the bank's move to replace its original strategic partner Natwest with Chase Manhattan Bank.

Post-close Gains

Brokers have once again begun to question the need for the 10 minutes post closing session on the NSE. The questions rose in the light of the sharp rise in the price of ITC during the post closing session. The stock jumped from Rs 950 to Rs 975 and about 66,000 shares were traded at this price.

This spurt led to a further difference of Rs 30 in the closing price of ITC on the two exchanges. While the weighted average price of ITC was pegged at a low of Rs 909.71, the closing at Rs 975 on account of the deals reported in the post-closing period saw the stock register a net gain of 5.86 per cent over its previous close.

According to brokers, the stock should be traded at a premium on the BSE considering the high badla rates since the stock entered into no-delivery for dematerialisation on Tuesday.Another important feature of the day was the average volumes registered at the counter. While the average hourly volume was close to 4.23 lakh shares, the last one hour of trading on the NSE saw the volumes rise to a high of 6.71 lakh shares.

Demand Pull

Brokers now seem to have turned bullish at the counter of Punjab Anand Lamp, a non-specified group stock listed on the BSE. The stock which is currently trading in the no-delivery category attracts attention at Rs 169 levels. According to market sources, Philips Netherlands has already increased its stake in the company from 74 per cent to 80 per cent, and the electric division of Philips would soon shift to this company. Another rumour making the rounds is of the company's name being changed to `Philips Electric'.

Similarly, another UK based FII is rumoured to have picked up nearly 8 per cent of this stock at the lower levels. Since the equity of the company is only Rs 7 crore and with the stock concentrated in few hands, the floating stock hasbeen reduced to a meagre 5-6 lakh shares.

Market observers strongly feel that even a slight demand could pull the price up. With the MNC name, traders are expecting a major re-rating of this stock.

Contributions from Nalini D'souza and Parul Monga