Grasim, Bharti Airtel cement pending Sensex correction!

After a shorter week, the stock markets finally witnessed an inevitable correction today. The major losers on the Sensex were Bharti Airtel, which was down nearly 8%, dropping below the 400 mark during the day's trade. Another big blow to the Sensex was Grasim. The markets did not welcome the proposed restructuring of Grasim, pushing it down more than 7%.

StocksCenter view of Grasim is contrary to what happened today in the stock market. We feel that since Samruddhi would remain a subsidiary of Grasim, the consolidated results of Grasim would not be affected adversely, only there would be an increase in minority interest in its subsidiary. The shareholders of Grasim would get additional and direct exposure to this subsidiary, which is planned to be merged with Ultratech in a process that would create the largest cement maker in the country.

The global markets were in the red as well, however in early trades, the US markets bounced back after a battering. So, we should see a better Tuesday tomorrow.

Bharati Shipyard formally announced the revised Open Offer for Great Offshore shareholders today- Rs. 560 a share.

The week has Infosys results coming up which would shape investor sentiments towards IT for a nearer term.

The markets are poised for a big move in this month - on either side, but the current sentiment makes one think it is the upper side. Also, the month after the next will be even more interesting as the speed of October will have to be absorbed.

All in all, a satisfying trade today.