The Hindu Business Line : Fund of foreign reason for pharma to fall

Beaten by petrol prices and catcalls of VAT, Sridevi, Jogin, Dakshinamoorthy and Khan, assemble to think aloud on what they see for the week ahead. Overhear.

Kay: Hi, anybody out there!

Dax: I know I'm broadminded, but my outlook is narrow.

Sri: That's how markets will be for one more week - narrow range.

Jog: Hello, you forget derivative contracts expire on Thursday!

Dax: You're a genius, Jog, unlike what I thought. This week could see some volatility, not seen in the last few weeks.

Sri: Inflation data is out and is up sharply. You guys don't see the big picture! LOL

Kay: That's negative sentiment, Sri, for the market as a whole. Just watch how the bond traders behave.

Dax: Telecom and top IT stocks can provide space for investment and trading play, I feel.

Sri: You know what I heard?

All the telecom players are going full throttle with their expansion plans.

Jog: The FM may have good news for the telecom sector.

May think of calling up Bharti, Tata Tele, VSNL and the like. Remember, it's a long distance call! :-)

Dax: Kay, what do you think of Eveready? Are you ready?

Kay: I see some run-up, like Shoaib. Better accumulate the stocks to sell on Friday or next Monday.

Jog: Look! On June 28 the board meets to decide on demerger of FMCG and bulk tea business.

Sri: Did anybody see paper?

Kay: About Modi escaping the guillotine?

Sri: Yuk! I meant, Paper Products is another stock to watch. Its price is down 20 per cent in the last one month.

Jog: Overall fundamentals of the company are sound.

Good for investment! JMO - just my opinion.

Kay: When was it last you heard about cases regarding open offer for Colour Chem or Nalco Chem?

Dax: In SEBI, SAT or Supreme Court? Do you think a PIL for investors' redressal will help?

Kay: That may be easy way to a verdict. Many are stuck with the stocks whose promoters crossed the take-over code and forgot.

Sri: Pricing plus interest plus the opportunity cost - counters are now lost in valuation maze.

Miniscule volumes give you an eerie feeling. :-(

Jog: Good monsoon so far. I'll bet on fertiliser and FMCG stocks.

Sri: Heard this at the water-cooler! That a foreign firm downgraded pharma stocks to help an MF enter pharma stocks. Could give us the opportunity to pick up quality stocks at competitive valuation.

Dax: Also, watch out. Same pharma stocks will jump once the MF has invested its funds.

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Lee, with inputs from Vir, Nat and Jay.

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