The Hindu Business Line : How can index gallop when crude leaps to $60?

After the cathartic destruction of `evil' to mark puja festivity, Jogin hops to his PC for the weekly chat on stock market, just when Sridevi, Khan and Dakshinamoorthy too log in. Raise your antennae.

Jog: Is it true they found sandalwood oil in

Veeru's jungle?

Sri: If only they found oil! Crude price is leaping to $60.

Winter is coming up.

Kay: Shivers! US heating oil inventories are on a decline.

Even stocks with positive news flow show muted price

increase as crude concerns mount.

Dax: Domestic petro-product prices may be revised on

Sunday (Oct 31).

Sri: Market will move in a narrow range. Derivatives

contract expire this week.

Kay: Leading index companies

including RIL will announce

results - and show the

direction.

Dax: Many markets are in a

declining trend. Watch the

direction and magnitude of FII

flows closely.

Jog: How about ONGC and

Sundram Fasteners? Dividend

announcements are imminent.

Sri: Buoyancy in retail loans

growth, impressive growth

rates that continue to keep coming on a rising base

and ADS plan may pep HDFC Bank. Bank on my opinion,

at your risk! :-)

Jog: If RBI decides to fight inflation with a combination of

higher Bank Rate, CRR hike and repo rate hike in the

Credit Policy, due on Tuesday, bank stocks may not be

adversely hit.

Dax: But HDFC Bank, ICICI Bank, Corp Bank and Kotak

Mahindra have strong retail orientation!

Sri: Sterling Biotech plan for overseas acquisition with

funding tied up with Rabo Bank may provide a

speculative prop even as the process is at a nascent stage.

Any idea on Roche?

Kay: Stock split and $22 million payment from Roche

(that may prompt expectations of a hefty one-time payout

towards end FY 05) may aid Nicholas Piramal paper over

insipid earnings numbers.

Dax: BHEL, which was the star performer in the Sensex

basket last week, may show a firm undertone. It has

bagged a Rs 1,800-crore order that could the drive the

price trend. Hear the bell ring?

Sri: Tightening aluminium market point to firmer prices

next year. Hindalco may be a value buy, especially if it

shows weakness on earnings announcement. Just my

opinion!

Jog: Havell's in the limelight as a private placement with

CLSA Private Equity appears imminent?

Kay: Integration of MICO's production capacities with

those of Bosch Power Tools at the global level and plans to

target a 40 per cent share in Indian markets may support

former's stock.

Dax: Kundli says continuation of weak trends in Nifty

with a downside bias of about 60 points.

Sri: Overall mood bullish. Firm time for mid-cap and

small cap stocks. Jayaswals Neco ko sneekoon?

Kay: Formerly Nagpur Engineering. NSE-listed. Big

players in the game. Debt restructuring likely.

Jog: Trigyn Technologies is completely written off, but

smart players are accumulating it??

Kay: Well, Welspun Gujarat raising global funds. FIIs and

foreign investors looking on. Take care!

* * * * *

Lee, with inputs from Vir, Nat and Sve.

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