The movement of indices on Wednesday proved the fact that artificial curbs imposed by the market regulator saved the day.
Despite apprehensions, foreign portfolio investors did not resort to sell-offs. In fact, few long-term investors were seen picking up blue-chip stocks. Intervention from Big Daddy and The Life Saver Fund helped the bourse trim losses. Old economy stocks shined, while pharmaceutical shares were the talk of the day with expectation of higher exports to the US.
Real daddy
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Big Daddy was indicated to be a buyer in Larsen & Toubro, Grasim and Cipla. There were also reports of the London-based fund selling in Ranbaxy. Big Daddy is normally expected to support the market in bad times. Since things have changed a bit with Big Daddy having its own problems, the rescue act may not continue for long.
Lifeline provider
The Life Saver Fund along with and Generous Insurance Fund as usual emerged as supporters of the market in trying times. Market players said that the Savvy Fund Manager and the Prudent Fund were also seen as buyers of old economy stocks. It is important to remember that insurance companies would be the major causalities owing to the air attacks in the US. Hence they are likely to conserve resources.
The rest
Wild rumors were doing the rounds that Aksh Optifibre and Sterlite Optical have lost some top level people in Tuesday's attack in the US. Sterlite Optical officials have denied this and sources said that Aksh Optifibre too has not lost any personnel. However, Wipro is reported to have lost some people. Universal Banking is said to have bought unconfirmed amount of Dr Reddy's shares, while Numero Uno is reported to have bought unconfirmed amount of Wipro shares, dealers said. Markets are unlikely to recover from this shock in the near term.
The developments in US and around the world will need to be closely watched. Cement is another sector which will attract attention. Though oil prices may act as a hindrance, any price increase by cement companies will bring back investor interest in the sector.