Is the market near its bottom? That is the question every player in the market is trying to address. Most fund managers are of the view that for those looking at a one-year perspective, one could invest at least one third of the money at current levels.
While most fund managers and leading operators are not averse to investing at current levels, the sudden developments in the global markets is restraining players from committing funds in a big way. Players are desperately looking for signs that could possibly indicate that the market has bottomed out.
The slide in software stocks over the past couple of trading sessions is being interpreted by a section of the market as signs of bottoming out. Software stocks have been able to hold on so far despite the bearish sentiment prevailing over the past few months. The ITC scrip, once the barometer of sentiment at the bourses, is now moving in the reverse direction. Apart from a leading domestic fund having made purchases at the counter aggressively over the past week, there is also a buzz in the market that the Cegat ruling in the excise case could be in favour of the company.
The BPCL scrip has suddenly found itself at the mercy of a leading US-based fund which has been pressing sales at the counter over the past couple of trading sessions. On Monday, the fund is reported to have sold around 1.5 lakh shares. A domestic brokerage is reported to have sold 60,000 shares on the same day though the identity of the fund could not be confirmed. Yesterday, too, the US-based fund was reported to be a seller at the counter though the quantity could not be confirmed.
After a US based fund, it now seems to be the turn of a Europe-based fund to hammer down the EIH scrip. Relentless selling pressure over the past few trading sessions has bought down the price of the scrip to Rs 155 levels.
The Zee Telefilms scrip witnessed some buying interest yesterday even in a falling market. A leading US-based fund with a presence in India is reported to have picked up around 50,000 shares at around Rs 520 levels. In all , funds are reported to have picked up between 1-1.25 lakh shares of the scrip yesterday. A leading BSE brokerage with a merchant banking arm and the UTI are reported to be regular buyers at the Punjab Tractors counter over the past few trading sessions. The Morgan Stanley Asset Management is reported to have sold around 40,000 shares of the scrip on Monday.
First to the post
There is this operator who has been regularly beating a domestic fund on its orders. Be it buying or selling, the operator always takes a position before the fund carries out its orders. Now, the operator has started doing it so blatantly that it is causing an eyesore to other leading players.
Role reversals
There used to be a time when fund managers used to talk about long term perspective while traders used to talk only of intra-week settlements. But given the sharp volatility being witnessed at the major bourses over the past few trading sessions, there seems to be a gradual reversal of roles.
Ask any fund manager today on what he feels about the India and chances are that he will be talking about specific scrips rather than the broad market.
So heavily has he lost over the past few months(except software) that he will not be willing talk long term. Now try asking a trader on the hot tips for the day or settlement. The poor guy has lost so heavily that he is now having second thoughts on punting. Now the trader's refrain is: "Do not risk speculating at current levels. The market is near its bottom. One should look from at least a six month perspective."
