Women’s Bill stand-off may hit Finance
The events unfolding around Women’s Bill have given rise to fears of a deep-market correction among institutional investors.
Even if Mulayam Singh-led Samajwadi Party (SP) and the Lalu Yadav-led Rashtriya Janata Dal (JD) were to oppose the Bill, the government will be able to get it passed with BJP’s support. However, things would be difficult when the government comes up with the Finance Bill, which is up next in the Parliament proceedings’ list.
The government will find it very difficult to pass the Finance Bill without SP’s or RJD’s support. “A couple of defections from the UPA will force the government to seek a confidence vote from members. This will dampen the sentiment of the market. In such a situation, the market is likely to slip into a deep correction mode,” an institutional dealer said.
Block deal in Nifty April puts raises eyebrows
The huge build-up of positions in Nifty’s 4800 April puts last week, when the index was trading around the 5100-mark, has intrigued market participants. The position is stoking curiosity in the market, as almost 13-14 lakh units out of the existing 19.65 lakh units of open interest were built up in a single deal.
Market participants are anxious to know the intention behind the purchase of this contract. If the purchase is part of a volatility trade, the market participants would be relieved, but, if it is based on a directional view, then they have something to worry about.
According to market grapevine, the buyer of this contract is the US-based Golden Socks, and that the trade is part of a volatility strategy.
Fund managers spoilt for choice
It was a hectic day for fund managers with several blocks of shares to choose from. In addition to Daimler Chrysler’s offer for sale of Tata Motors shares, India Cement and battery maker Exide Industries were looking to raise funds through qualified institutional placements (QIPs).
India Cement is looking to raise around $48 million at a floor price of Rs 120.2, and an option to increase the issue size to $75 million. It is learnt that key investors in India Cement include Halbis, Bajaj Allianz and Templeton.
Exide Industries which is looking to raise around $110 million at Rs 108 has been subscribed almost three times. Key investors in Exide were Jupiter, which applied for three million shares, Kotak Mutual Fund (75 lakh shares) and Mirae and India Capital (20 lakh shares each). SBI Life and Reliance Life are learnt to have applied for shares worth Rs 80-100 crore, while Amansa is said to have applied for approximately shares worth Rs 50-60 crore.
(Contributed by Shailesh Menon, Nishanth Vasudevan & Apurv Gupta)
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