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Heard on the street
Bulls caught off guard in XL Tele as FIs
Bulls who have tried bottom-fishing in shares of XL Telecom & Energy recently could be in for trouble as some of the institutional investors have been dumping their holdings. The company’s balance sheet is under strain, and it has already applied to the Corporate Debt Restructurring (CDR) cell to recast its high-cost loans. One of the sub-accounts of Morgan Stanley & Co International has sold 6.6 lakh shares of the company early this month and pared its stake to 0.87% from 4.05%.
The shares were sold on November 6, and the company was informed on November 17. An earlier filing with the BSE shows that the sub account had come to own 11.19 lakh shares (5.4% of equity) of XL Telecom through conversion of FCCBs on October 23 this year.
Strangely, the company’s shareholding pattern for the quarter ended September 30, shows the Morgan Stanley sub-account as holding 11.19 lakh shares. At the peak of the bull run in 2007, XL Telecom was tipped as an upcoming blue chip, with some of the savviest investors on Dalal Street buying sizeable stakes in the company. The stock, which had touched a peak of Rs 595 sometime in December 2007, closed at Rs 38.55 on Tuesday, down 4% over the previous close.
Dalal Street gets a pedestrian look
NOT been to the Bombay Stock Exchange (BSE) for some time? Your next visit to the exchange may surprise you with some changes that have just taken place around the iconic Jeejeebhoy Towers and the Rotunda building housing the exchange and broker offices.
Heightened terrorist threat has prompted the police and the exchange authorities to leave no stone unturned to beef up security in the premises. The lanes surrounding the two buildings, including the famous Dalal Street, have been declared as a pedestrian zone and no parking is allowed for any vehicle in those lanes.
Even the exchange’s own underground parking is no longer available for its officials and the members. All this ahead of the forthcoming anniversary of the 26/11 terrorist attacks that had caused tremors globally.
Banks gain on fund infusion talk
Buzz is that government is set to infuse more funds into public sector banks in order to help them boost their capital and to possibly smoothen the consolidation process.
Market sources say Syndicate Bank, Andhra Bank, Union Bank, Dena Bank, Corporation Bank and Bank of Maharashtra are some of the banks that are likely to get capital from the government.
Talks of recapitalisation and merger spurred buying in second-line banking stocks on Tuesday. Union Bank, which was bought in large numbers by domestic mutual funds, ended 2.4% higher at Rs 284 on the BSE.
Dena Bank and Bank of Maharashtra ended 3.3% and 0.1% higher at Rs 83 and Rs 50 respectively.
Contributed by Santosh Nair, Vijay Gurav & Shailesh Menon
Src:Economictimes.Indiatimes.com