Fast track
Second-rung IT stocks on uptrend
AS the information technology, media and telecom stocks, part of the convergence triad, failed to gather momentum and lend direction to the overall market movements, the market continued to remain in a bearish mode. Even though the BSE Sensex staged a l
ate rally of nearly 100 points to close on Tuesday at 3943.54, around 23 points higher than the previous day's close, it failed to impart strength to the overall markets.
Impact
Hinduja Finance: Access plans break off
THE Hinduja Finance stock may show some price weakness in the near term with a key joint venture plan falling through. The proposed joint venture between In2Cable.com (India) Pvt Ltd, a subsidiary of Hinduja Finance and Pacific Internet, Singapore, for n
arrow and broad internet access is unlikely to take off. The negotiations have been discontinued with the parties failing to agree on key terms of the joint venture. Since this joint venture may have provided a thrust to Hinduja Finance's move to emerge
as a convergence play, there may be some decline in store for the stock in the short term.
Aimco Pesticides: No quick perk likely
THE quality clearance received by Aimco Pesticides for the US markets may hold the potential for improving the revenue stream over the medium to long term. The company has received a certificate of Quality System Assessment issued by American Quality Ass
essors, Columbia, for manufacture and distribution of technical grade pesticides and pesticides formulations. This could improve export prospects. But any improvement in the valuation of the stock (which trades at around Rs.6) may come about only if ther
e is evidence of an improvement in the bottomline and this may come about only over a period of time.
Zee Telefilms: Hazier by the day
THE possibility of Zee Telefilms divesting some of its stake in a key subsidiary company may not enthuse market sentiment for the stock. The company has indicated that it would divest some stake in a 100 per cent subsidiary, Siticable Network. This is ex
pected to raise up to $200 millions. Though the proposal appears a fairly major exercise, the markets may prefer to wait and watch if this plan is taken to the completion stage. More so, in the wake of the uncertainties that have enveloped the ADR plans
of the company. The stock may continue to show a weak underlying trend.
Stocks
Market warms up to oil scrips
The action ended in a stalemate with the bulls and bears grappling for supremacy at the markets. However, neither managed to gain full control and the markets closed the day on a weak note.
LYONS RANGE
SENTIMENT did not improve much on Lyons Range. The two CSE indices changed marginally. The CSE-40 closed at 1840.17, up from 1833.46, while the CSE-50 settled at 111.35, a shade down from its opening mark of 111.8.
Technical Analysis
Bearish trend sustains
THE S&P CNX Nifty and the BSE Sensex continued to remain in the bearish trend for the fifth consecutive day. Market sentiment reading also remained bearish. However, even mild bull domination could reverse the downtrend to bullish in both the indices on
Thursday. The sentiment reading may also turn neutral in case of bull domination.
