To turn a Nelson’s eye to all the things happening within and outside the country is the way the markets function, discounting good and bad events, the market often goes in opposite directions.- the BP fiasco, slashing Greece’s credit rating to “junk” status by Moody’s, inflation on the home turf and the impending fear of an off-cycle rate hike by RBI and all such events have been conveniently ignored by market participants. Thus the bulls have been pampered and coaxed to continue raging and consequently the Sensex closed the day at 17412.83, up by 74.66 and the Nifty rested at 5222.35, up by 24.65 points.. Thus in just two days, the sensex gained 347.88 and the Nifty gained 103.points.
The market breadth as reflected by Nifty stocks was quite positive – 36 advances and 14 declines. Reiance Power, Suzlonand RCom were the top three gainers registering gains of 5.69, 4.75 and 5.43 per cent respectively.
Wipro lost a lot and closed at Rs.408 – it fell by Rs.266 [ 29.4 % ] BPCL lost 5.78 per cent and ONGC lost 2.56 per cent.
In corporate news, HCL Technologies signed a US $ 110 million, around Rs.3.66 billion five year deal with Singapore Exchange.
BP Plc is struggling hard to keep at bay the possibility of hostile takeover and out of sheer fright it has appointed three bankers including Goldman Sachs and Blackstone Group Plc to look into this aspect. BP Plc shares have come sliding down from its 52 week high of $ 62.38 to $ 31.92 [ today’s close on the American bourses ] and its just $ 2.92 off its 52 low mark. As the days pass by, a takeover or bankruptcy cannot be ruled out. So, can any one guess what’s going to be the fate of BP plc which boasts of a refining throughput of 2.3 million barrels per day. No prizes for guessing!
Kishor S. Khot, [Kishor@hbjcapital.com], Equity Strategist, HBJ Capital Services Pvt Ltd
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