Foreign funds seem to have come to the rescue of local bulls who were just about beginning to show signs of fatigue. The fact that FIIs were net buyers to the tune of Rs 157 crore on Wednesday seems to have encouraged bulls to lead a fresh charge.
However, this time around, the buying interest should come in cyclical and commodity stocks rather than software stocks.
Going by pure logic, it does not make sense for foreign funds to buy into software stocks at least for the time being, considering the stratospheric valuations therein.
Also, since they are taking a call on the economy, they would want to have a good exposure to economy-related stocks, which offer a good upside from current levels.
IPCL sparkles
After remaining subdued all these days, despite an excellent corporate performance and the imminent government divestment, the IPCL scrip hit the upper end of the circuit filter on the NSE yesterday. Among institutional players, the Cowboy Fund is reported to have picked up close to 5 lakh shares yesterday. In fact, many institutional players have been making regular purchases at the counter over the last couple of months. However, at every rise, players who were stuck at higher levels dumped their holdings out of sheer frustration, thus keeping prices under check. With polymer prices on the downtrend, most of the buying interest is in anticipation of the bid for the government's stake coming at a substantial premium to the market price.
Mystery deal
