The Hindu Business Line : Mind that mounts higher than a bird can soar

Jogin clapped slowly when Nalbandian defeated Federer in the Masters Cup. Khan tracked satellite images of tropical storm Gamma. Dakshinamoorthy wondered why PSU boards should become unmanageable while complying with clause 49. But Sridevi summoned them all for the market chat. Leap in!

Sri : Hi all! You know what’s on this week apart from Bihar poll results?

Dax: Expiry of derivatives contract! There could be run-up in stock price.

Sri : Chart patterns suggest continued up trend. Plus a brief correction.

Kay: Let’s not be surprised at a new high in Sensex and Nifty this week!

Jog: It can hit headlines… just when it would be the right time to exit.

Dax: Singing ‘High diddle doubt, my candle’s out’! :-)

Sri : For that rhyme, here is a line from King Henry VI: “‘tis but a base ignoble mind that mounts no higher than a bird can soar.”

Kay: Ah, the Bard’s! But mid-cap and small-cap should do well this week.

Dax: Be careful while investing in them. Look only for good companies.

Sri : Last week a leading domestic broking firm had a conference of fund managers with the management of some of the mid/ small-caps.

Jog: Such as Sintex, IPCA Laboratories, Mawana Sugar, Paper Products, Sanghvi Movers, Esab India, JSW Steel and Ador Welding.

Dax: Fund managers were happy with the management presentations!

Kay: A few stocks moved sharply after the meeting.

Dax: Though most of the companies look good. JMO

Sri : Shall I buy these stocks with a target of 1-2 years, not 1-2 weeks?

Jog: Check October performance of stock prices. Last Monday, kya hua?

Dax: I have the numbers. On Nov 14, Aegis Logis, Empee Sugars, Nicholas Pira and Crest Anim made about 5 per cent gains.

Sri : Gateway Dist earned around 3 per cent profits. Spanco Tele and Bharti Tele were up by about a per cent on November 14.

Jog: Hind Petro and Bajaj Auto stayed positive.

Kay: HMT reported a modest loss in 2005 Q2 but stock seems spirited!

Dax: On Friday, it closed at Rs 98.95, straight Rs 8-plus gain!

Sri : Interestingly, only 12 per cent of the traded quantity (over 53 lakh shares) was deliverable. Marketmen are asking about the fate of the so-called “recovery package” for the company.

Jog: Bilt is said to be adding tissue paper to its product suite. Stock is now at about Rs 108, down from the 52-week high of Rs 134.

Kay: Subex Systems, any capital issue in the offing?

Sri : It has decided to double its authorised capital, investors point out.

Dax: Its stock is trading at Rs 640 or so. Volumes are quite low, though.

Sri : Bajaj Auto likely to continue its upward march.

Jog: Stocks such as Nagarjuna Construction and Gateway Distriparks may show firm trend ahead of proposed overseas offerings.

Kay: Government’s decision to dilute 15 per cent stake in SCI is positive.

Jog: The stock became very active after the news.

Sri : Aptech gained after the board okayed hike in FII limit to 74 per cent.

Dax: Thermax going strong after it has got orders worth Rs 178 crore!

Jog: M&M racing ahead after signing JV with International Truck, US.

Kay: ICICI Bank may rule flat as its mega equity offering is to open soon.

Dax: Ferrous metals stocks will be weak; global prices appear to soften.

Jog: Sical, emerging as a pure logistics player, could attract interest, as investors have been eyeing this sector in recent months.

Kay: Firms dealing in irrigation systems are likely to gain from a proposal that the Agriculture Ministry is to make to the Union Cabinet.

Dax: The idea of a 50 per cent subsidy for drip and sprinkler irrigation?

Sri : Currently, it is 25 per cent. Hike in subsidy may see more farmers taking to such irrigation system. “The task of the modern educator is not to cut down jungles, but to irrigate deserts,” advises C. S. Lewis.

Jog: Jain Irrigation and other companies stand to gain, therefore!

Sri : Poultry, specifically, egg exports are on a roll.

Dax: SKM Egg Products, Godrej Industries and Venky’s would gain.

Kay: “Will you take eggs for money?” as in The Winter’s Tale! LOL

Lee, with inputs from Vir, Nat, Mad, Nil, Sub, The and Sve.

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