Even the worst of news seems to be no news for the ITC scrip. If one were to take a look at all the negative news to have hit the counter over the last six months and study the price movement, the downtrend looks insignificant.

Few other topline stocks would have been able to withstand negative publicity to such an extent as ITC has been able to do so. Also, ITC seems to be the only counter where fund managers have decided to go against the general view. For any fund manager looking for a defensive destination, ITC is the stock to be, if the scrip is any indication. First came the government’s decision to ban tobacco companies from sponsoring sporting events. Analysts have never tired of pointing that ITC’s growth through better price realisation is unlikely to be sustained for long. Then there is the occasional news item about tobacco companies in the west having had to compensate smokers.

Last week, a prominent financial institution is believed to have said that it would not take any further exposure to the stock purely on ethical grounds.

That still could not stop fund managers from flocking to the counter on Monday, with nearly 1.5 lakh shares reported to have been picked up on Monday. The name of probable buyers also included Uncle Sam who is reported to have been a seller at the counter about a week back. Incidentally, the Life Boat Corporation is reported to have mopped a good chunk on Thursday and Friday after preaching ethical values earlier in the week.

Making merry?
It appears as if the Merry Lunch brokerage has still not had its fill of the Satyam Computer scrip. After having mopped up close to 9 lakh shares on Friday (taking the tally to about 2.6m for the week), the broking firm was seen scouting for the stock at lower levels on Monday. Considering that few players are in a tearing hurry to get into the stock, Merry was content playing the waiting game. It is estimated that close to half a million shares could have been picked up on Monday, with bulk of it going into Merry’s kitty.

Getting defensive
With most fund managers having reconciled to a rangebound market, some of them are seen occasionally heading for the defensive counters. HLL and Cipla were among the prominent stocks on the buy list on Monday with close to a million shares of Lever and close to a lakh shares reported to have picked up.

At both counters, the Solo Smith brokerage is reported to have been one of the executors though the identity of the fund is yet to be confirmed. Cap-It-All still continues to be a regular buyer at the HDFC counter even as the Pacific Trust is reported to have sold close to 3 lakh shares on Friday. Meanwhile, the last supporter of Castrol, Cap-It-All, finally seems to have thrown up its hands in despair. It accelerated its ongoing sales at the counter, offloading another 50,000 shares on Friday.

Santosh Nair, santoshnair@myiris.com