The bourses were lacklustre on Wednesday but showed strong resilience by remaining in positive territory despite the US Nasdaq losing about 2 per cent. The markets were also unaffected by Reserve Bank of India's concerns over economic deceleration and industrial recovery. Technology bellwether Infosys slipped sharply towards the end of the day down 4.9 per cent during the end of the day. Two heavy-weight old economy stocks also recorded their 52-week lows today.
Buyback drama
Cummins is believed to be planning a buyback at about Rs 80 per share. The company is, however, denying this even though it's buyback and open offer time. The stock has seen a smart rally over the last few days. No one knows how much weight can be placed on the so-called talks on buyback.
We understand that some of the funds are offloading their holdings of Cummins at the current price levels. One of the local funds seen booking profits. This fund is believed to have bought huge chunks of the company's shares at about 48 levels and is using the current upside, thanks to rumours.
Bombay Dyeing
Bombay Dyeing counter witnessed interest as the company announces its plans to buyback shares in the first week of September. Bombay Dyeing will look for buying back around Rs 1.02 crore of equity shares -- 25 per cent of the total existing share capital of the company -- at a maximum price of Rs 60 per share. This will take the promoter's stake in the company to 54 per cent. Raising the stake in the company would help its promoter Nulsi Wadia to thwart any takeover bid from raiders like Arun Bajoria.
Satyam
Punters were busy at the Satyam counters as the company is believed to have indicated to a leading investment house that it is exploring the idea of giving away shares of SIFY as stock dividend to shareholders of Satyam. This means that SIFY could get listed in India and all shareholders of Satyam would get shares of SIFY free of cost. This would get Satyam rid of the losses of its loss making-subsidiary and would get the SIFY scrip listed on the domestic. Uncle Sam and Savvy Fund Manager were busy at the counter.
