The Hindu Business Line : Nobody knows which new negative will crop up when

Dejected with India's performance in Athens, Sridevi, Khan, Dakshinamoorthy and Jogin despondently settle down at their PCs to look at the bourses. Will markets cheer them?

Jog: Hello! This is BSNL calling. Anybody to respond to

aggressive tariff cuts?

Sri: I can see pressure on Bharti stock. MTNL, too, would

be forced to effect cuts and this could affect its valuation.

Dax: Budget has been passed quietly, oil prices have

come down, and inflation is expected to come down by

mid or end-Sep.

Kay: Most of the negatives from the market are almost

over. However, nobody knows which new negative will

crop up any moment. KFC (keep fingers crossed!)

Sri: Softening trends in crude prices may ease concerns

of market players. Crude prices may settle in the $35

range. ONGC may not suffer,

as it did not piggyback on

the rally in crude prices!

Kay: IOC, HPCL, and

Bongaigaon Refinery look

attractive.

Jog: AFT syndrome seems to

have infected some tea scrips

operating in major bourses

relevant for large tea estates.

Remember, AFT chose to

delist, seeing "no purpose

remaining listed"?

Dax: Overall the undertone of market is quite bullish.

My crystal ball says `up' this week. But key indices will

not have any major uptick. Mid-cap and small caps stocks

in good demand.

Kay: Pharmas with antibiotic focus may face shrinkage in

profit margins. Pricing pressures are getting intense

across markets, domestic and global.

Sri: Do I see on afflicted list Lupin, Aurobinodo Pharma,

Orchid Chemicals and Kopran?

Kay: Right, Sri. Bigwigs Ranbaxy, Wockhardt and Dr

Reddy's may offset with other therapeutics.

Jog: See through glass! The industry is out of recession.

Haldyn Glass, Saint Gobain and Kojam Fininvest - all

these are small cap companies but with good returns

possibility. :-)

Sri: Haldia Petrochemicals management is ready for

Rs 450 crore-plus IPO. But HPL's liquidity is worrying.

Will it be a replay of Coal India? Coal merchants obliged

for its bonds!

Dax: In mid and small-cap list, I'm watching Bata,

Asian Elec, South Asia Marine, and Elder Pharma.

Jog: Dax, suno. Mid-cap and small cap stocks are

expected to rule the market till September end. Look for

companies that had good results in Q1. Handsome returns

expected in one month! :-)

Sri: Siemens VDO - an automotive supplier - may witness

enhanced interest as a merger with its parent Siemens,

which holds 74 per cent, appears likely. Siemens VDO

may be viewed as a proxy to buy Siemens! Expect firm

trend till swap ratio is announced. JMO - just my opinion.

Kay: Market seems to like breweries: United Breweries,

Shaw Wallace, Khoday, and Radico Khaitan. Buying these

shares should be under control and with strict vigil, to

avoid hangover! Gulp!

* * * * *

Lee, with inputs from Vir, Ray and Sve.

Send in your views to: Chat@TheHindu.co.in.