Heard on the Street

Heard on the Street

Blame it on BoR merger, ICICI Bank sheds 3% Shares of ICICI Bank shed 3% to Rs 842.20 on Monday, leading the decline in banking stocks. According to dealers, a foreign institutional investor, which bought a sizeable chunk in the bank in the past month or so, was a seller on the stock. ICICI Bank has been in news recently after its decision to merge Bank of Rajasthan with itself, a move that was not appreciated by many in the market. Investors fear the move could hurt the bank’s asset quality. PSU insurer buys Essar Oil on price deregulation hopes A large PSU insurance major is believed to have been mopping up shares of Mumbai-based Essar Oil in the past few sessions. Brokers said that the insurance firm was a big buyer in the stock on Monday, though the stock closed 1% lower at Rs 127. According to dealers, market participants were anticipating some positive development on deregulation of fuel price. This could have helped the company in getting some relief in expanding their fuel retailing. The company has recently announced its plans to raise up to $300 million by issue of FCCBs in one or more tranches, on preferential offer basis to promoter company, Essar Energy Holdings to part finance its scaling up of Jamnagar refinery capacity by 25% to 3,75,000 barrels and increasing its complexity. Fairfield gains 14% on delisting hopes Shares of Fairfield Atlas rose 13.9% to Rs 55 on Monday on speculation the recent government rules on minimum public shareholding requirement would prompt the company to consider delisting. Promoters hold 83.91% in the company. Reliance Capital Trustee is one of the key FIs in the company with a 8.46% stake. The buzz is that Fairfield’s promoters are not in favour of diluting their stake in the company for meeting the new rules, while Reliance Capital is unwilling to sell its stake in an open offer, if any. Grapevine has it that Reliance Capital is not ready to tender shares around this level, as its average purchase price of this stock has been ‘much higher’. In 2007, TH Licensing Inc, the company’s promoters, had made an open offer to buy all of public shareholding at Rs 81 per share, but was not successful as Reliance Capital did not participate in the open offer. Contributed by Harish Rao, Apurv Gupta & Nishanth Vasudevan

If market goes below 4950, its a confirmed downtrend: Deepak Mohoni

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TRADING DESK

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Src: ET and DP blog and Smartinvestor.in