Fast track
Cipla: Morgan's prescription
THIS column tracks price movements on the Bombay Stock Exchange. The gains and declines in prices are with reference to the closing price of the first trading day in a cycle of 15 trading days. The Index Of Consistency (Column `N') shows the
difference between the number of days, prices gained and number of days they declined.
Impact
Finolex Cables: Consolidating operations
THE consolidation exercise undertaken by Finolex Cables may lead to firm trends in the stock price. The company has proposed to acquire the 50 per cent shareholding of SX Mauritius Holdings Inc, Mauritius held in the joint venture company
Finolex Essex Inds Ltd. Finolex Cables already holds a 50 per cent stake in the latter. The company plans to merge Finolex Essex with itself once the acquisition of the stake is completed. The move to consolidate the business under Finolex Cables fol
d may help underpin the stock price trends.
Gujarat Ambuja Cements: Seeking cash
THE proposal of Gujarat Ambuja Cements to sell some of its investments may augur well for its cash flows even as it has just completed the acquisition of DLF Cements (now Ambuja Cement Rajasthan) and the strategic stake in ACC. Since the company
has taken debt to bankroll these acquisitions, any cash flows that could reduce the debt burden may prove beneficial. In this context, the move of Gujarat Ambuja to sell its holdings in GRUH Finance and Hometrust Housing Finance Co (a group company
) may be viewed favourably by the markets. The board of directors is to meet on June 27 to consider the sale. The Gujarat Ambuja stock may be on firm ground. -- BL Research Bureau
HDFC: Adding more muscle
A FIRM undertone can be expected in the HDFC stock in the wake of possible investment in the equity of Hometrust Housing Finance and GRUH Finance. Since these two companies have established operations, they could strengthen HDFC's
business profile over the medium term. The board of directors is to meet on June 27 to consider plans in this regard. The board is also to consider setting up a company in India for undertaking the business of IT enable and allied services
, jointly with Tata Consultancy Services. These moves may lead to trading interest and some modest upside cannot be ruled out in the short-term. -- BL Research Bureau
Stocks
Cabinet takes beat out of VSNL, MTNL
SENTIMENT continued to be depressed during the day's trading at the Bombay Stock Exchange. The BSE Sensitive Index dropped by 72.46 points to close at 4,721.70 points for the day. That there was selling pressure was evident from the rise in trading turno
ver which was Rs. 4,478.32 crores compared to Rs. 3,575.86 crores on Thursday.
Technical Analysis
Sideways trend continues
THE sideways trend in the indices continued as the market remained range-bound during Friday's trading. Trading sentiment, measured by the number of counters in bull, bear or sideways trend, underwent major changes. The mildly bullish sentiment reading t
urned neutral.
