The increase in day trading vis-a-vis delivery-based deals notwithstanding, there is a perceptible sag in enthusiasm on the bourses.
Cassandras aver that it will not be long before institutional investors also start to day trade, of course with the benedictions of the regulator. In which case, both the foreign and domestic institutional investors could be treated on par with the domestic day traders.
Such a turn of events can galvanise the soporific bourses, and give volumes the viagra treatment.
Rumour-mongering
Uncle Jam is reported to have been facing redemption pressure and may have employed Jordan Flaming to sell a few of its holdings, including 9 lakh shares of Reliance and about 1 lakh shares of ITC, along with unquantified shares of BPCL and HPCL. As against the selling, it is reported to have been a consistent buyer in Hindustan Lever. Looking at the contradictory activity, the redemption pressure talks sound more tilted towards speculation. The latest note on Indian strategy by Uncle Jam is quite cautious than it had been earlier. Uncle Jam is waiting for a trigger which could be in the form of a successful handling of the UTI crisis, a good monsoon, recovery in domestic economic activity, a US recovery or political stability. However, Uncle Jam says that even if these occur in the next three-to-four months, they are unlikely to prop up the Indian market, which is an unmistakable sign of a maturing bear market.
The rumours that the Golden Fund had picked up substantial amount of Zee shares now seem to have been unfounded as new rumours emerged that the buyer was the Savvy Fund Manager.
Stocktalk
German Remedies is losing attraction as its shares continued to remain weak as the open offer made by Cadila to the share holders of German Remedies has been over subscribed. Cadila made an open offer to the share holders of German Remedies, subsequent to the acquisition of 27 per cent stake held by Asta Medica. The oversubscription of the open offer indicates that more investors are willing to offload their holdings in the company. The shares which will not be accepted in the open offer will find its way into the market.
The hopes of an open offer by the parent company brings back investors confidence on the counter of Philips India. The open offer hopes pulled up the stock by 11 per cent. During the end of last year, the Philips parent had made an open offer to acquire all 49 per cent outstanding shares of its Indian subsidiary at a price of Rs 105. As the parent is keen to delist the company from the market, further open offers could be possible, analysts say.
