Fast track
Will Fed meet lend direction?
A SCRUTINY of the major gainers of the last fortnight throws up only few names of note _ HDFC, HDFC Bank, BSES, Procter & Gamble and Knoll Pharmaceuticals. But by and large, the broad markets continue to show price weakness.
Impact
L&T: Postponed revamp may not help
THE decision of Larsen & Toubro to push back the restructuring of its cement business may not be viewed favourably by the markets for two reasons. One, the proposed restructuring schedule may prolong the uncertainty with regard to a key bu
siness of the company. Two, though the top management has indicated that it would like to take the capacity to 15 million tonnes and improve profitability levels, the frequent changes in the plans may not help the valuation of the stock. The
company now expects to complete the process of hiving off the cement division into a separate company only next year. The stock, which has been on a steady downtrend in the last couple of months, may at best languish around the current price levels
.
Avery India: Doubts over open offer
THE conditional exemption granted by the Securities and Exchange Board of India (SEBI) from an open offer by Weigh-Tronix, US, for Avery India may dampen market sentiment in the stock price of the latter. The conditional exemption is linked to the
shareholders of Avery India passing a special resolution approving a change in control through a postal ballot. If this is done, the US company would not be required to make an open offer under the SEBI takeover code. The weighing and food proc
essing equipment business carried on by the Avery Berkel Group is to be sold to WeighTronix. GEC Avery International Ltd of the UK, the Indian company's promoter, is a group company of the Avery Berkel Group. This transfer is now unlikely to lead to a
n open offer for Avery due to the SEBI decision and the stock which has been on an uptrend may show price weakness in the short term. _ BL Research Bureau
Stocks
LYONS RANGE
EQUITY prices on Lyons Range were volatile on Tuesday even as the CSE-50 closed at 115.18, up from 114.08.
A lack-lustre day, awaiting Fed decision
bourse on Tuesday as the Sensex closed just mildly higher than on Monday. The Sensex opened at 4239.40 and touched a high of 4247.19 before closing at 4230.13 , up 17.60 points (0.42 per cent) from the previous day's close. At present there seems no indi
cation of the underlying trend of the market index as most investors seem to be unsure whether to buy or sell. The market is nervously awaiting the outcome of the US Federal Reserve meeting on Tuesday on whether they will raise interest rates.
Technical Analysis
Downtrend in danger
THE markets were bearish in the initial hours of trading, leading to the survival of the downtrend in both the indices. The market sentiment remained mildly bearish on Tuesday. However, the bull domination during the mid-session has posed a severe thre
at to the prevailing downtrend in both the indices. Hence, even a slight move in favour of the bulls is sufficient to put an end to the prevailing downtrend.
