panch-tattva talk…profit booking


As was expected, the markets were up and down on Friday. After the Sensex touched the highest point in past one year, there was all-round profit booking. The market closed lower than on Thursday but up over the last week’s closing and recorded gain for the 14th week in a row. BSE’s gross market capitalisation stood at Rs 49.80 lac crs, a healthy level indeed.

The recent take-over of Dempo by Sesagoa has been given a welcome by market. ‘Sesagoa’ touched high of Rs215/- and closed at 203/- (only the last week you were advised to buy around 156/- and also sell partly at over 202/-, after its result announcement, under ‘panch-tattva/post result).

Vedanta launched $1.25 billion convertible debenture issue (this is largest from an Indain company).

R-Infratel is looking to raise Rs5000crs via sale of shares. The shareholders of RCom and Reliance Infratel recently approved transfer of Optic Fibre business from RCom to R-Infra.

It is now clear that the budget will be setting a higher figure for the social sector spending and the deficit ( 5.5pc in last year’s budget ) this year will also be high.

The IIP numbers have been better for the latest month. The inflation has been a ted higher at 1.48pc.

All in all, it is a precariously balanced situation and may tilt any time. The crude is inching up by the day and any further upmove will beyond $75/bbl will call for fuel price revision in India as per my estimate.


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