Street Signs

SMART EYE

The rains came down hard enough for the markets to cheer up at the start of last week, but by the end of it, oil and inflation went up so high that the markets soon forgot about the monsoon.

Now there is more bad news ahead. As if inflation at 7.51 per cent - a three-and-a-half-year high - is not disheartening enough, the US Fed is said to be making plans to hike rates by a quarter of a point to 1.50 per cent this week.

Our government has sought to soothe frayed nerves at the bourses by assuring to check inflation by the middle of the month. Given confusing signals - a not-so-weak monsoon and better corporate results against rising oil prices and inflation - it remains to be seen where the markets will be headed in the short-term.

Meanwhile, the murmurs about activity at the GTB counter refused to die down. PC's men were apparently not too amused about the happenings and are believed to have quizzed Mr Know All about the people at the counter.

SSI-nging in the rain
There have been block deals galore at IT counter SSI in the past few weeks. Nosey Parker's version is that frangipanis Mr A B Amre, Merry Lunch and Metro Fund were busy selling at the counter to the combined tune of 14 lakh shares - which constitute 7.50 per cent of the company's equity - in July alone.

The talk is that pure profit-booking intentions must have led these funds to sell off the scrip, considering that it has appreciated by nearly 80 per cent during the past year and more than 30 per cent in the past month.

Eager beavers were so anxious to make money that one of them actually bought more than 1.2 lakh shares of the scrip at Rs 164.40, before selling at Rs 164.69, which translates to a tidy profit of Rs 36,000. However, the real story apparently lies somewhere else.

Heavyweight investors, who usually come to know of things before lesser mortals do, were said to be the ones picking up the shares, in anticipation of some 'very favourable news-flow' at the counter. Wait and watch.

Karur capers
Mr AB Amre is apparently in a selling mood. He was at it again at the Karur Vysya Bank counter, selling nearly 1.8 lakh shares at Rs 305. Whether he made some money out of the deal or not is open to question, considering that the scrip has been on a downward curve, shedding close to 27 per cent in the past 12 months.

But despite the damp price trends, Karur Vysya is still considered attractive by many. The bank posted a net profit of Rs 34.10 crore for Q1FY05, up 11.80 per cent from Rs 30.50 crore in Q1FY04.

The bank has targeted total deposits of Rs 7,000 crore and gross advances of Rs 4,800 crore by the end of the current fiscal. The bank is also focusing on improving its advances with a thrust on retail finance and lending to small and medium enterprises.

According to one domestic brokerage, at a P/E of 3x FY2005 estimated earnings, the bank's current valuations still remains attractive given its improving asset quality, growing business and attempts to become tech savvy. Wonder what the Lord of the Ring has to say about all this.

In another action, desi fund HS Busy's Opportunity Fund is said to have bought 2.2 lakh shares of Bombay Dyeing at Rs 145.23 per share.