Fast track
Sterlite Ind: Holding ground
THE trends in the broad markets have not been favouring the bulls for the last couple of weeks. Given this scenario, the individual stocks could more or less follow the broad markets. Even firms which have reported a good earnings performance have not fo
und significant buying interest.
Impact
Raymond: Raking in the cash
THE proposed sale of the cement unit by Raymond may lead to a sizeable cash inflow and profit for the company. The cement division is being sold to Lafarge of France for Rs. 785 crores in all-cash deal. This development may move Raymond one step closer t
o a sharper focus on its core business of branded textiles. The sale may also trigger market interest in the stock with expectations of a sizeable one-time dividend payout by the company. The Raymond stock may show firm trends and some upside may be in s
tore in the near term.
Ranbaxy: Moving into German territory
THE agreement entered into by Ranbaxy with Bayer AG of Germany to acquire unit in Germany may augur well from a long-term perspective. The company plans to buy a generics business unit of Bayer AG which is valued at $4 millions. With the generic business
having a portfolio of 20 products with formulations, the acquisition may help Ranbaxy strengthen its presence in the German and other European markets. Since the regulatory clearances would be in place, it may also cut down on the lead time in tapping t
he markets. Though this agreement would be beneficial from a medium to long-term perspective, it may not lead to any significant improvement in the valuation of the stock in the short-term.
McDowell: Adding more presence
THE possibility of McDowell acquiring a Rajasthan-based unit may be viewed favourably by the markets. The board of directors has approved the proposed acquisition of Udaipur Distilleries. This would give McDowell its own manufacturing facility in Rajasth
an and help save on some costs by way of State Government levies. The acquisition could strengthen McDowell's market presence. The deal may, however, not lead to any immediate perk in the valuation of the stock.
Stocks
Downtrend in markets
A smart recovery in the Nasdaq index on Thursday failed to boost market sentiments at the Bombay and National Stock Exchange on Friday with share prices registering a moderate decline on speculative selling pressure from local operators as
well as institutional investors.
LYONS RANGE
the Raymond scrip hit the upper circuit filter on new of its sale of plant to Lafarge.
Market prescribes loss for pharma scrips
THE BSE Sensex ended at 4,657.55 points, down by 22.08 points (0.47 per cent) on the heels of traders squaring off outstanding purchase positions ahead of the weekend.
Technical Analysis
Bears under pressure
THE bearish trend in both the indices again survived on Friday. The markets were more or less sideways except for the mild bear domination towards the close. The bear trend in the indices had put the indices under pressure. A bull attack on Tuesday has t
he potential to terminate and reverse the ongoing bearish trend. The prevailing trends of the scrips are, however, expected to remain stable irrespective of bull or bear domination on Tuesday.
