The focus is on results, takeovers, buybacks - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

The focus is on results, takeovers, buybacks

Oct 21, 2000

Just when it seemed that the domestic markets were headed lower, the surge in the US bourses came to the rescue. The NASDAQ infact jumped nearly 10% in three trading sessions. As a fall out, domestic TMT (technology, media and telecom) stocks rallied. So did some other stocks owing to a good performance in the second quarter. Among the top gainers in the A group during the week were NIIT (up 40%), Great Eastern Shipping (20.1%), HFCL (18.2%), TVS Suzuki (17.7%), Ashok Leyland (17.5%) and Tata Steel (13.9%). The broad mix of sectors these companies belong to itself highlights the fact that the buying interest in the markets was very stock specific.

Of the above group, two companies, NIIT and Tata Steel, announced results that exceeded market expectations. This drove buying interest in the stock resulting in large appreciation in stock price. Another two, Great Eastern Shipping (G E Shipping) and Ashok Leyland saw their stock prices spurt after the companies announced plans to buy back stock. In case of G E Shipping the move was triggered by a takeover threat looming large over a group company GESCO Corporation (up 34%, B group).

The top losers in the A group during the week included Zee Tele (down 16.6%), Pentamedia (11.6%), BSES (11%), Punjab Tractors 9.5%), Hindalco (8.7%) and Bajaj Auto (7.1%).

Pentamedia suffered on account of its unimpressive quarterly results. Zee too met with unloading on similar expectations. Indeed, Zee has announced a 60% growth in profits, one third of which is accounted for by other income. Among the other losers, was Bajaj Auto which met with selling pressure on account of disappointing quarterly results. The Hindalco stock reacted to the decline in global aluminium prices.

The stock markets have had their hands full in recent days. On the one hand corporate India is in the midst of unfolding its financial scorecard even as the volatility on the US bourses has created a flutter in global markets. On the other buyback offers and the takeover threats have given a new twist to the entire scenario. These factors have created a scenario in which the domestic bourses have been trading in a range bound manner. Gains in recent days have been eroded, while sharp falls have drawn buying interest. The BSE Sensex declined by a marginal 1.2% during the week.

In the coming week the focus will continue to be on the takeover battles brewing in Corporate India, involving GESCO Corporation and Bombay Dyeing. Another stock to look out for would be Tata Engineering (Telco). The company has announced a much higher than anticipated loss of Rs 1.46 bn for the quarter. Also Colgate, ITC and M&M are scheduled to announce their results. With their peers already having reported disappointing results, market expectations are already running low from these companies. Whether the markets will be finally able to break away from existing levels is however difficult to say. Nevertheless, the week promises to be an interesting one.

Equitymaster requests your view! Post a comment on "The focus is on results, takeovers, buybacks ". Click here!

1 Responses to "The focus is on results, takeovers, buybacks "

shweta

Sep 23, 2009

sir,
I want to know about the listing price of Himachal futuristic communication ltd. and the life time high of hfcl in equity market

Like 
  
Equitymaster requests your view! Post a comment on "The focus is on results, takeovers, buybacks ". Click here!

More Views on News

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

ONGC to NMDC: Here are 5 Stocks Value Investors Should Closely Track (Views On News)

Nov 26, 2021

Before investing in value stocks, research the company and gain insight into why the market is discounting it.

Top 5 Stocks FIIs Bought and Sold Recently (Views On News)

Nov 25, 2021

FIIs have largely stayed on sidelines for the past few months, withdrawing money across emerging markets.

Everything to Know About the Upcoming Tega Industries IPO (Views On News)

Nov 27, 2021

Are you looking to apply for the Tega Industries IPO? You must ensure that you know specific details.

3 Charts on Why the Indian Bull Looks Tired podcast (Views On News)

Nov 27, 2021

Rahul Shah explains the key reasons behind his pessimistic outlook on the stock market.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

How to Hit Rs 100 Crore Wealth in Your Lifetime (Equitymaster Wealth)

Nov 15, 2021

This is how you can achieve the ambitious goal of a net worth of Rs 100 crore.

Don't Sell these Stocks if the Market Falls (Profit Hunter)

Nov 17, 2021

These are the 3 types of stocks that you should not sell in a market crash.

MobiKwik IPO Opens for Subscription Soon. Key Things to Know Before Subscribing. (Views On News)

Nov 20, 2021

The Rs 19 bn issue is set to hit the market soon.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Nov 26, 2021 (Close)

COMPARE COMPANY

MARKET STATS