Booster shot
An interesting tug of war playing out in Dr Reddy’s following the fourth quarter numbers. Massive volumes were seen in the ADRs on Friday, and on Monday too ADR volumes were higher than usual. Dr Reddy’s has been among the laggards in the pharma pack, and near term outlook remains cautious given continued price erosion in the US generic space and increased R&D spend. Price action seems to indicate that some local players are trying to boost the price, but the premium to ADR is turning out to be a problem. If the premium to ADRs widen beyond a point, it makes sense for foreign funds to sell the stock in India and buy the ADRs.
Chill pill
Disappointment over the fourth quarter numbers appear to have subsided for now. The PMS fund affiliated to the Pearl brokerage is said to have trimmed its positions in the stock, having made a tidy profit over the last few months. For a rerating to happen from these levels, the company will need to come out with a strong margin performance in the June quarter.
Capital gains
AB Capital shares climbed after a strong fourth quarter performance. The midcap Mugul is among the big bulls in the stock, and is heard to have added to his positions last week.
Flying high
Interglobe Aviation shares have managed to maintain altitude even some of the early bird investors have been booking profits. With the aviation industry in general is grappling with staff issues, it is Air India and Vistara which have been making headlines of late. And that seems to be persuading some of the Indigo investors to remain seated. Meanwhile, the Calculator Fund is said to have trimmed some of its positions in the stock last week.
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