Metro finds South Indian Bank spicy

STREET SIGNS

The sight of 8,500 made even the normally sure - take a few steps backward.

The result was that the Sensex snapped a 4-day upward spiral, which resulted in a 310 point gain to close at 8,471.

The statisticians were quick to pour through their records to see whether this was a day fit to be ranked alongside the days where the index had witnessed maximum volatility.

To their general disappointment the day ranked only sixth best. While most players blamed an interest rate hike by US Fed books for today's declines, the uncharitable has pointed to news reports of an IB probe into the current boom, which has led many to run with their profits.

Going South

Metro Fund decided to buy the South Indian Bank stock at Rs 76 levels. The fund is said to have bought more than 2.8 lakh shares in a recent deal. Apparently, the fund is impressed by the bank's improving fundamentals.

The Thrissur-based bank recently mopped up Rs 65 crore by way of Tier II Bonds for augmenting additional capital for business expansion.

Also, the bank has decided to strengthen its focus on serving NRIs and is planning to set up offices in West Asia and has rolled out exclusive products for the NRI community.

Not impressed

The Feeder Fund has had enough of the goings on in BPL Ltd, which explains its decision to sell more than a lakh of BPL shares at Rs 57 levels.

BPL had recently signed an MoU with Eveready Industries to sell its dry cell battery business to the latter. But it has decided to keep its alkaline battery business.

According to BPL, the reasons for it exiting the dry cell battery business is that it did not want to enter the price sensitive paper jacket battery segment but instead wanted to focus on its core competence in entertainment electronics, medical electronics, engineering plastics and tooling for the auto and consumer electronics sectors.

In February, BPL Ltd had commissioned Pricewaterhouse Coopers for a strategic study of the company and on the basis of which the company is planning a re-launch of the BPL brand in October after its corporate debt restructure plan got the Kerala High Court approval and its 50:50 joint with Sanyo is ready to take off.

But none of it has seemingly made an impression on the Feeder Fund.

In other news...

The Paris bank's investment arm has decided to book profits at the Videocon International counter.

The fund sold more than four lakh shares at Rs 98 levels.

The decision comes after the stock price has more than doubled since the start of May to its current 52-week high levels.

One India-focussed fund was a buyer at KLG Systel counter, buying some 20,000 shares at Rs 210 levels.

Phoenix Bank was a buyer at Vardhman Polytex counter. The bank bought more than 78,000 shares at Rs 121 levels.