A unanimous view that emerged in a conversation with Manish Raychaudhari of BNP Paribas and Sushil Kedia, Director – Quantative Strategies, CIMB, is that equities are more likely to head lower than higher in the near future.

The company announced a three-year, interline agreement with Singapore-based Tigerair, a move that is expected to increase the carrier’s load factor. An interline agreement involves issuing tickets for passengers with multi-airline itinerary for the partner carrier.

However, unlike a codeshare agreement, in an interline pact, the issuing airline will not stamp its code on the partner carrier’s flight.

The deal is expected to remain non-financial and no equity investment would be made by Tigerair, the company said. The Singapore-based low-cost airline, Tigerair, operates in several countries in the Asia Pacific region.

Sharemarket seems to have lost some of its fizz since the state elections. It is just taking a pause, says Ajay Srivastava, CEO, Dimensions Consulting. He feels the government needs to push for growth now and if the Reserve Bank too continues with its expansionary policy then the index is likely to move higher.

He advises investors to book profits regularly given the market volatility. He recommends subscribing to the GSK Pharma open offer as he believes the drug major will look at delisting eventually. Infact not just GSK, he feels companies with MNC parents will eventually delist. He, however, cautions against buying in euphoria.

Elder Oharma lost 7.5 percent and Torrent Pharma declined 1.2 percent after latter decided to buy former’s domestic branded formulation business for Rs 2,000 crore.

Credit Suisse maintains its neutral stance on Torrent with a target price of Rs 407. “Acquisition of Elder Pharma does not change its view but it will be earnings per share dilutive for the first two years with the net debt / equity increasing to 1.3 times with further acquisitions ruled out for the next 3-4 years,” the brokerage house report said.

Analysts are worried about the residual business of Elder Pharma which includes low margin API and European business, and lack of clarity on money that Elder will receive and how it will be utilised.

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