Pharma Stocks upbeat as Glaxo Pharma announces

to up its stake in Indian Biz

Markets continue to struggle to remain in the green, with

continued profit-booking appearing at the slightest of upmove

in the heavy-weighted stocks. The news on GLAXO PHARMA’s

decision to enhance its holding in the Indian business at a

significant premium

has resulted into

some of the other

PHARMA & FMCG

stocks gain

momentum.

Additionally, there

also seems to be a

distinct vacillation

towards the large

cap IT scripts – INFY and TCS seem to be the current favorites in

the market, given the strong possibility of a turnaround led

upmove in operating revenue for the larger players in the US

markets.

Banking stocks continue to confuse marketmen esp. with the

RBI’s mid-quarter credit policy around the corner later this

week though there seems to be a wide consensus on the

possibility of a 25 bps repo rate hike. It would also be worth

mentioning that the RBI governor in his recent public

appearances has been talking about adding liquidity into the

system which may seem contrarian to the very clear need to

hike repo rates particularly to rein in inflation. So it remains to

be seen how the RBI governor does this tightrope walk once

again and markets could take further cues from there by

Wednesday. Before the RBI policy announcement, we also face

the trigger of the FOMC’s announcement on the taper and we

expect market volumes during the day’s session to be on the

lighter side in light of this event on Tuesday.

The new 10-yr benchmark continues to be edging stronger on

yields, almost within kissing distance of the 9% mark – the 25

bps repo rate hike almost seems to have been factored in. Any

deviation from the expected move by the RBI on Wednesday

would only impact the yields going ahead.

Catch Financial Adviser – Sachin Karpe @

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