Institutional activity picks up

After its spectacular performance, MNC-pahrma major, Novartis is the latest craze among the institutional investors. A number of funds including a few Hong Kong based funds have gone bullish on this pharma company. UTI and a few pharma funds funds are also believed to be active buyers at the counter.

The scrip, even in this volatile market, has been on the rise and shot past the Rs 1,000 mark to Rs 1,010 after a gap of almost two months. It is now inching towards a new high. After peaking at its all-time high of Rs 1046 in March, it dropped back to Rs 733 on April 26. Since then, the scrip has been in demand and the activity has picked up after the announcement of the results. Novartis8217; net almost doubled to Rs 74.7 crore from a 13 per cent jump in turnover to Rs 747 crore. The dividend payment too more than doubled to Rs 8.5 per share.

Finolex is turnaround counter

Turnaround expectations in the full year coupled with delivery-based buying by a Mumbai-based operator has resulted in hectic activity at the Finolex Industries counter. Marketmen, on the back of a rise in the prices of poly-vinyl chloride PVC, are betting on this Pune-based company and expect it to outperform the market.

Although the scrip, after zooming to its new 52-week of Rs 28, dropped back to Rs 20, the activity at the counter has been hectic. The scrip shot back on Monday and froze at the upper end of the filter at Rs 22.4 on the National Stock Exchange.

The company has already staged a turnaround in the first half with a net profit of Rs 12.32 crore against a net loss of Rs 8.14 crore in the corresponding period of the previous fiscal. The net profit for the third quarter ended April shot up further to Rs 12.21 crore, thereby taking the nine month profit figure to Rs 24.53 crore. The upward revision of prices and the growing demand for PVC pipes augurs well for Finolex Industries, which may end the full year with a net profit of over 35 crore. The cause of concern, however, remains the huge equity of Rs 148.7 crore, which the company plans to bring down through buy back.

Still bullish on IPCL

Investors were disappointed with the full year performance of IPCL. The drop in net was due to the fact that petrochemical prices throughout the current year were depressed and therefore the company posted poor results. Investors are now looking at it as a phenomenon peculiar to the industry and looking forward to the changing fortune of the petroleum industry as investors expect the current year to be good for the industry. The investors are buying the stock for the medium term now as IPCL is expected to show substantial improvement in the current year profits. 8220;Typically, the petroleum industry globally is not volatile and it goes with the cyclical downturn and the cyclical upturn of 2-2.5 years. The cyclical upturn in only the beginning and the sector has a lot of positives to unfold in the current year,8221; said a fund manager.

IFC stake propels Moser Baer

Moser Baer has been witnessing a lot of activity on the bourses with the stock hitting the upper circuit consistently for the last few trading sessions. With International Finance Corporation planning to invest in the company on both debt and equity side, the price has rallied. 8220;Moser Baer is in the Data Media business and the company has positioned itself as an OEM supplier to reputed brands like BASF, Data write, Sony which should take the company a long way from its current levels,8221; said a BSE broker.