Most broking houses have a bearish view on two-wheeler stocks due to slowdown in the rural economy. Despite the weak outlook, foreign investors were seen increasing their holdings in motorcycle makers during the March quarter. Hero MotoCorp, TVS Motor and Eicher Motors have reported increase in FII holdings of over 100 basis points during the quarter. Bajaj Auto is the only one to see FIIs paring their stake. Shares of most two-wheeler companies saw huge correction between January and March.
Sebi's commodity prep
The Securities and Exchange Board of India (Sebi)'s commodity division is no minimalist affair. It could be made up of as many as 40 officers, according to a source. However, many of them have limited commodity exposure. Training plans are, therefore, underway at National Institute of Securities Market. Meanwhile, co-ordination meetings with the ministry and the Forward Markets Commission are ongoing. The plan seems to be to make sure the division can hit the ground running once the merger between the two regulators is complete.
Sachin Mampatta
Valuation question for Sharekhan
The huge interest in acquiring retail-focused broking house Sharekhan has sparked hopes that mergers and acquisitions activity in the broking sector could see a revival. Warburg Pincus and General Atlantic are the frontrunners to acquire the firm for around Rs 2,400 crore, according to media reports. Prima facie, the acquisition amount looks substantial, but experts believe the valuation could be much better, in view of the cash on Sharekhan's balance sheet.
Sneha Padiyath
