Domestic fund managers seem to have gone wrong with the timing of their bet on Sun Pharmaceutical. The country's biggest pharma company was the most-bought stock by mutual funds in April. A total of 27 million shares worth Rs 2,534 crore were bought at an average price of Rs 940. Subsequently, the stock has fallen over 10 per cent, after the company posted weak March quarter earnings on account of the Ranbaxy integration. The stock, currently below Rs 850, is expected to remain under pressure in the short term, say analysts.
Market correction sparks buybacks The stock market correction since March has triggered a spate of share buy backs. In the past two months, about five companies, including CRISIL, Just Dial and Bayer CropScience, have announced share repurchase programmes. The benchmark indices are down 10 per cent but share prices of a lot of companies have been hit harder. Analysts say the buybacks are being announced to support share prices and more might follow.
Nifty around key support The benchmark Nifty is currently around 8,100, a key support level. The index has formed a triple-bottom around this level in the past month. On previous occasions, the Nifty has managed to bounce back sharply whenever it has slipped below 8,100. Technical analysts say 8,055 remains a key support level for the index. The Nifty could bounce back sharply if it trades just above this level.
 "Sun Pharma woes for fund managers")
