MC Inside Edge | Cement biggies break word, land bank worries for Godrej bulls, ultra HNI’s spiritual quest, PMS managers take cash call

Know all the major deals and all the inner goings-on from Dalal Street.

God promise

A few months ago, the big guns of the cement industry met up at a Mumbai mansion and over food and drinks, promised to hold back production increases and not undercut each other on prices. But meet, greet and eat parties like these usually are greet, eat and cheat parties in disguise, be it any sector. A little over a month after the bonhomie, one player increased production. Another followed, and then one more. With the result that cement prices have been flagging despite strong demand, and stocks are under pressure. Having realised that a price war benefits nobody, moves are afoot to convene another meeting where the big guns will again promise the same things as they had in the previous meeting. Some brokers are said to be building positions in cement stocks in anticipation that the gentlemen will honour their word this time round.

Land ahoy?!

Godrej Industries' shares tanked on Thursday even as the family settlement is being viewed by the Street as a major positive. Some wealthy HNIs, including South-based Kochi Tusker, and many PMS funds had loaded up on the stock over the last year in anticipation of this development. But the market appears to be disappointed at the fact that there is no clear mention as to where exactly the land bank of the group will sit. That appears to be a secret for now, something that big investors are not liking.

Spiritual leaning

Market swings in the last couple of months have left even the most seasoned of players perplexed. That could probably explain why the Honey-tongued fund manager-turned-ultra high networth individual decided to seek some spiritual answers in Bali before diving back into the chaos. Honey is said to have taken off for 10 days to spend time with his spiritual mentor who is also a motorbike and sports car enthusiast, and is now back in action.

Keeping powder dry

A section of PMS fund managers is learnt to be booking profits on hugely profitable bets and increasing cash holdings in the portfolio. Their call is that a huge upside looks unlikely given that the market has already priced in an NDA victory. And even if election results were better than expected, these fund managers do not mind buying at prices 10 percent higher. However, should the results disappoint, they want to be well positioned to scoop up bargains.