Heard on the Street - ET

Heard on the Street

Bears move in for the kill on Bharti counter
The tug of war at the Bharti Airtel counter continues. Just when it seemed that the stock was recovering lost ground, the bears have struck again. The stock was the among the biggest losers in Tuesday’s volatile session, shedding over 4% to close at Rs 293. Near-term outlook on the sector is bearish because of the ongoing tariff war.

But bears have not been able to make a killing so far. Most fund managers have an exposure to the stock, and talk is that they have been supporting the price at lower levels. Traders see Rs 280 as a key support for the stock, as it was the lowest level touched during the market meltdown in October-November last year. Bears will be looking to push the stock below this level so as to trigger technical-based selling pressure at the counter.

KSK Energy hops on to the QIP bandwagon
Even as the near-term outlook on the equity market remains uncertain, the qualified institutional placement (QIP) bandwagon continues to roll on. The latest company to raise funds through this route is KSK Energy Ventures. The indicative price band for the issue is Rs 194.50-196, and the company hopes to mop up around $125 million. KSK shares on Tuesday closed at Rs 198.60, up 0.2% over the previous close.

Market fails to warm up to interest rate futures
Despite interest rate futures having been made accessible to a wider base of participants in its new avatar, the segment is yet to generate excitement among market participants. The buzz is that most of the players, mutual funds and financial institutions are waiting for the first round of settlement of contracts.

The main concern is about the physical delivery and the fact that it’s a 30-day delivery period. Industry participants say the product in itself needs to be tweaked to make it more ‘user friendly’.

Spinning a yarn to make a pile
An investor-cum-operator, who runs an investment company named after an ocean, is believed to be active again in his favourites — Welspun Gujarat Stahl Rohren and Gokul Refoils. The operator, who has been booked by Sebi on various counts of front-running and circular trading, and his friends have been spreading rumours about both the companies securing large orders from overseas clients, market sources said.

Grapevine has it that the operator and his friends ramp up stock prices, while floating rumours, and dump the stock after it reaches a specific price target. Shares of Welspun ended 0.7% lower at Rs 275.25 on Tuesday while Gokul Refoils closed 1.5% higher at Rs 56.80 on the BSE.

Contributed by Santosh Nair, Deeptha Rajkumar & Shailesh Menon

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Nifty may find it tough to breach 4900-mark
11 Nov 2009, 0230 hrs IST, Devangi Joshi

The Nifty appears to be facing a tough time crossing the 4900-mark. The resistance at 4900 is highlighted by an addition of 12 lakh shares.

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Src: Economictimes.Indiatimes.com