Eicher has Castro, Tumble Ton drooling

STREET SIGNS

Looks like foreigners have gone on a long weekend. Whatever foreign buying was there, was limited, which resulted in a rather flat day for the Sensex, which is a rarity in this record-breaking season.

Eicher encounter
Castro fund and Tumble Ton were involved in block deals in Eicher Motors. In two separate deals, Castro bought nearly six lakh shares at Rs 307 levels.

Castro's interest in the counter seems to have been inspired by the company's changing strategy to focus on businesses in which it could attain a strong market position.

Eicher recently completed the acquisition of Design Intent Engineering, a Detroit-based engineering services provider, in an all cash deal of $2.5 million.

Also it had recently sold its tractors, engines and gears divisions for Rs 310 crore to Tafe Motors and Tractors. With the sale of the tractor business and acquisition of the Detroit firm, Eicher will now focus on its core business, commercial vehicles, apart from expanding its operations into the business of engineering services outsourcing. Evidently, Castro thinks highly of this strategy.

Swift move
Jeweller fund was among those making a beeline to Ind Swift Laboratories. The markets have been abuzz with rumours that the company is likely to receive a big order for the drug Lipitor from a leading pharmaceuticals major.

The talk about big orders has seen the stock moving up again after a lull in the first half of the year. Though nothing earth shattering compared with the rise in some other counters, the stock has risen by 22 per cent in the past three months.

Metro musings
Metro fund was a seller in Hindustan Organic Chemicals. The fund is said to have sold nearly five lakh shares at Rs 42 levels. The stock had been hammered following a dismal performance in the June quarter.

The company reported a net loss of Rs 15.60 crore during the quarter compared with a net loss of Rs 4.27 crore during the corresponding quarter in the previous year.

However, since the start of May, the stock has been in the thick of action, with the price moving up nearly 200 per cent. Evidently, a good profit booking opportunity for Metro.

Lending takes position
Lending Brokerage was a buyer at Bombay Dyeing counter. It bought more than four lakh shares at Rs 412 levels. Though many were left wondering about Lending's decision to buy the stock, others say it may been prompted by the good outlook on the textile sector.

They also note that the company had recently resumed operations at its DMT plant at Patalganga, which was stopped owing to the disruption of power supply for some days.