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Interest to remain high on bank stocks
Shares of banking counters will remain in traders’ focus this week, as they staged a sharp rally since Raghuram Rajan took over as the RBI Governor last Wednesday. In just two days of trading, Bank Nifty almost regained the 10,000-mark as Raghuram Rajan kicked-off his term with a slew of measures to support the embattled rupee and unveiling a raft of steps to liberalise financial markets and the banking sector. Traders who took short positions were forced to square-off their positions, as Bank Nifty was last seen above the 10,000-mark on August 2.
Divestment talk on Coal India
As the disinvestment process of five per cent stake in Coal India entering the crucial phase, the stock will remain focus. The company said it will hold a meeting with five trade unions next week to persuade them to withdraw their strike notice against the Government’s divestment move. Trade unions have decided to go on a three-day strike from September 23. Meanwhile, the Government is likely to clear the appointment of legal advisors to manage the disinvestment. The Centre, which currently holds 90 per cent stake in the company, pared a plan to sell 10 per cent stake in CIL to placate employee unions.
Selan Exploration and buyback
Shares of Selan Exploration are likely to come under the market radar, as the buyback window for the company comes to an end on Friday. The company, which intended to buy back shares worth Rs 20.28 crore, offered a maximum price of Rs 350 a share. However, during the buyback period, the stock has mostly been ruling below that level. The company has so far mopped up 5.79 lakh shares from the public. The stock hit a 52-week low of Rs 211 in May.
OMCs: will price rise?
Oil marketing companies will come under pressure this week, as the Government said it will not take any decision in haste to increase diesel and petrol prices. “No decision has been taken. No decision would be taken hastily and certainly no decision will be taken without weighing the pros and cons of the larger public interest,” Finance Minister P. Chidambaram said, while winding up a discussion on the first batch of supplementary demands for grants in the Rajya Sabha. Last week, Petroleum Minister M. Veerappa Moily pitched for an ‘appropriate’ hike in fuel prices. With crude oil remaining at elevated level (Brent crude is ruling $116 a barrel), one has to see how long the Government can wait.
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