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BUSINESS STANDARD
Last Updated : Jun 12 2001 | 12:00 AM IST

Nobody expects life to be a cakewalk after July 2, the day on which the ban on deferral products will be complete. Market players are slowly learning to take it as a new learning curve which one would have to go through.

Old liking

ITC is like an old flame with Uncle Sam. The more the stock is hated, the more fondness for it returns. Unfortunately, the huge volumes which one used to witness at the counter are a thing of the past with operator-interest totally having evaporated. Today Uncle Sam picked up 1.5 lakh shares in a market otherwise devoid of activity.

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On the fundamental front, although the short-term prospect are seen chaotic due to falling volumes, the bet on the stock is that it would save money and enhance earnings by a judicious advertising policy and lower income tax.

Doubt bug

The Jan Fund is turning jittery with its holding in Reliance Industries, if its behaviour at the counter is any indication. The fund is reported to have sold around one million shares today. It could also be a minor reshuffle of no real consequence considering its exposure to the stock.

The fund's holding is of a long-term nature since it exceeds the total traded volumes by at least 20 times. However, the views on the stock are turning more realistic and funds are not exactly excited as before -- the weak petrochemical cycles being a major reason for this.

Against the tide

The E-Name Brokerage seems to be taking a contrarian view on BPCL and is pushing the stock at a time when many are double-minded about its future growth.

The firm reportedly bought around two lakh shares today. It feels that the short-term negative factors on the stock have already been factored in. The provisioning which the company has made in its latest figures is expected to be reflected in its future results.

The impending deregulation of the oil sector and re-rating of sector stocks after the IBP disinvestment could also aid the stock.

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First Published: Jun 12 2001 | 12:00 AM IST

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