Below 6,400 and back...

The Sensex briefly went below the 6,400 mark, but recovered from those levels. However, indices continue to cool their heels in the red, as investors display wariness over the crude oil and inflation issues. All sectors have been equally hit by this pessimistic sentiment. Of the Nifty 50, only 7 companies are in the positive.

The BSE Sensex is trading at 6,403 (down 76 points) and the Nifty is trading at 2,008 (down 23 points). The rupee is trading at Rs 43.72 per US Dollar.

The country's premier credit rating agency is back in the news again. Global rating major, S&P, which had earlier offered to acquire over 55% stake in the company at an offer price of Rs 680 per share has sweetened the deal further. The global major has hiked the open offer price to Rs 775 per share for shareholders. It has also hiked the offer size by 10% to over 65% stake in the company. It should be noted that the offer is conditional and is based on a minimum level of acceptance at around 41% stake. If the offer is accepted in full, S&P will hold 75% stake in the company. In case of minimum offer acceptance threshold, its stake will be 51% in Crisil (CRSL.BO, news) . Currently, the stock is up 6% at Rs 747 levels.

Some newspapers had opined that oral care major, Colgate (COLGd.BO, news) , was strengthening on expectation of a buyback by the parent. The company however, has clarified in a statement today that the parent company has no plans to increase its stake in Colgate India, nor do they have any plans as of this date to make a buy-back offer with a view to delisting the company on the stock exchanges. In our view, the strength in the scrip is largely a result of expectations of improved volume growth scenario in FY06, as well as the fact that the parent may utilise the company's services as a manufacturing hub for its products going forward. However, when that will happen, we do not know. The concerns of course, continue to be the impending entry of P&G into the Indian oral care market. The stock is lacklustre today.

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