The capital markets discounted international rating agency Moody's lowering of the country's local currency rating to negative on Thursday.
Buying by foreign institutional investors on Wednesday, the day after S&P's downgrade of the country's rating, is enough proof for their confidence in the country. Buying in select heavyweight stocks such as Hindustan Lever and Reliance Industries pulled up the indices after ruling in a flat zone.
Recast move
Big Daddy continued its selling spree on Thursday. Shares of Reliance were among those being discarded by it along with HDFC and Reliance, despite these stocks been the performers during the year. Though one cannot expect commodity prices to move up in a slowing global economy, Big Daddy's move is more directed towards restructuring its portfolio leaned towards debt.
Quarterly glitch
The Savvy Fund Manager is said to have sold almost 1 lakh shares of HCL Technologies along with Universal Banking. Savvy seems to have been influenced by the Pioneering Fund's decision to downgraded this software company to market outperformer. It also cut its price targets for the medium term. The yearly performance along with growth prospects marred the enthusiasm on the stock.
Rumour target
SSI was the target of rumours in the markets on Thursday. The buzz was that the promoters of SSI are using the low stock price to increase their stake. As per the holding pattern in June 2001 available with the National Stock Exchange, promoters own around 19.31 per cent stake in the company. Institutional investors have about 44 percent stake, while the balance is with retail investors. Low stock price is normally an invitation to raiders but that is not applicable to software stocks as their real asset is intellectual property.
Tailpiece
Buyers were after the Castrol stock on Thursday for a few foreign portfolio investors. The Prudent Fund and Tailor Fund together are said to have bought three lakh shares of Castrol. Golden Fund continued its selling at the Zee counter and is said to have sold a substantial chunk on Thursday. Numero Uno is reported to have bought two lakh Satyam Computer shares.
