Bulls seem to have become an endangered species. They feel going bullish to be an unviable proposition. This attitude coupled with the total lack of interest are taking its toll on the bourses. The gradual erosion in volumes and prices is testimony to this effect.
Reliance effect
The Jordan Flaming Brokerage sold around six lakh shares of Reliance Industries today which not only dragged the counter lower but the indices as well. The selling seems to be more in the nature of a trading call.
In another related development pertaining to Reliance, Moody's, which has abolished the country-ceiling policy, is rumoured to re-rate the debt instrument of the company. Earlier debt plans were capped by the country's sovereign ceiling.
Now they can be upgraded from their current ratings so as to be rated higher than the sovereign debt. While it may not exactly trigger any bull run as far as the stock price is concerned, this development definitely bodes well for the company because of which it may be able to raise money in future at competitive interest rates, effectively having a positive impact on its bottomline.
Hurried unloading
Big Daddy is in a hurry to unload whatever it can while the going is good. Today it was reported to be selling chunks of Himachal Futuristic Communications and Hindustan Lever.
Unfortunately for the fund, the liquidity in the market is impairing its ability to sell quantities which it would have liked to. Big Daddy seems to be preferring higher liquidity to take care of uncertainties.
Gaga over Satyam
After successfully completing the American depositary receipt issue of Satyam Computer, which it was mandated for, the Big Bull Brokerage does not seem to have overcome the hangover.
In its latest report on the company yesterday, the firm has put out an intermediate and long-term buy call. It says that the company has a balanced mix of services with a limited exposure to the weak telecom space. The entrepreneurial orientation of the management and its flexible business strategies have also been appreciated.
