The market on Friday was torn between the positive overhang of Nasdaq and the depressing domestic situation, but ultimately the latter prevailed.
While institutional buying interest was seen in select tech stocks, following overnight gains in the tech-heavy Nasdaq, selling pressure was seen in select pharmaceutical and old-economy stocks.
The overall mood in the market stayed bearish on account of ongoing investigations into a number of stock market-related irregularities seen in the past few months and the disappointment over some June quarter results.
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Flying colours
Shares of Asian Paints were picked up by Cap-It-All on Friday. It is reported to have picked up 2.5 lakh shares at the counter expecting a better performance in the current quarter, just ahead of the festive season.
Normally, the demand for paint picks up on the eve of Hindu festivals beginning August stretching till October.
Interestingly, there are not too many shares available in the market and it is reported that Uncle Sam was the sole supplier of the stock to Cap-It-All.
Market players said the action on the Asian Paints front from Cap-It-All may continue as it is known fact that it is not just a long-term player but also believes in quantities.
It is also reported to have been a seller in Hindustan Lever for the past few days and now it is seen to be bridging the FMCG exposure with Asian Paints.
Moreover, the raw material prices are believed to have dropped as against the expected rise in paint sale especially in the quake ravaged Gujarat.
The reconstruction in the state is expected to be in full swing during the ensuing months, which is expected to bolster demand for paints.
With the monsoon gods being kind enough, paints demand in the rural sector is also expected to rise.
European impact
Bajaj Auto's plans to tap the rising European demand for ungeared scooters attracted fresh interest on Friday.
Though the number of shares changing hands were few, it seems to have reversed the downhill journey of the stock.
Europe is seeing a big boom in demand for ungeared scooters, with the market growing at 20 per cent per annum as ungeared scooters are smaller and easier to ride than motorcycles and have an engine size of around 100 cc.
Out of the global demand of 3 million of ungeared scooters, Europe imported around one million such scooters last year.
Bajaj Auto plans to exploit the opportunity through a tie-up with an auto giant (with good technology).
However, it is yet to short-list the names. Bajaj's low-cost production base for scooters should attract any foreign partner with technological skills, but lacking cost advantages.
Rumours galore
The stock markets, as usual, were thick with various rumours. A rumour of ex-UTI chairman P S Subramanyam meeting some journalists later during the day was very strong.
The rumours were that he may disclose some facts that would create political uncertainty in the country. However, his bail was rejected which put an end to the rumours.
There were also rumours that the Sebi board, which is meeting on Saturday in Mumbai, may consider re-introducing badla in a different form.
However, these rumours are more likely to be hopes than any informed guesses, because Sebi is not likely to reverse its decision of making the Indian markets internationally compatible. Moreover, the government is also not in the mood to oblige the broking fraternity.