Weak global markets played spoil sport as the markets ended on a losing note at the end of the week. | |
| At the same time several milestones were crossed. The Sensex breached the 14000 level in intra-day trading on December 6 and closed at an all time high of 13972 the very next day. |
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| However, fragile international markets meant that the Sensex lost all gains and was down 45.29 points to settle at 13799 at the end of the week. The Nifty lost 35.6 points to settle at 3962 during the week. |
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| What to expect this week |
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| Markets are expected to consolidate this week as profit booking is likely to continue. |
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Market observers do not see any triggers that could boost sentiments. Bank stocks would be under pressure due to the CRR hike. Bond portfolios of banks are likely to get hit as interest rates rise.
| Stock to watch | Malu Paper Mills | | Last week's close (Rs) | 43.45 | | Prev. week's close (Rs) | 30.38 | | Week's high (Rs) | 44.15 | | Week's low (Rs) | 29.38 | | Last week's ave. daily turnover (Rs cr) | 11.75 | | Prev. week's ave. daily turnover (Rs cr) | 2.38 | | Number of up/down move | 3/2 |
Though Malu Paper Mills had a subdued start ever since its listing in April this year, it has started attracting attention recently. The stock shot up by 43 per cent in the past one week and almost doubled in the last one month. The stock has given a return of more than 40 per cent over its issue price of Rs 30. The company's expansion plan involves an 80 per cent rise in its Kraft paper capacity of 8250 tonnes per annum. Further the company is expanding its newspaper and writing and printing paper capacity to 150 tonnes per day. The company is reportedly looking to grow inorganically. Paper prices are buoyant and companies are expected to raise their prices. Malu could be one of the gainers. |
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| Stock of the week | Bayer Diagnostics India Ltd | | Last week's close (Rs) | 918.35 | | Prev. week's close (Rs) | 727.90 | | Week's high (Rs) | 940.00 | | Week's low (Rs) | 736.00 | | Last week's ave. daily turnover (Rs cr) | 8.27 | | Prev. week's ave. daily turnover (Rs cr) | 0.29 | | Number of up/down move | 5/0 |
Bayer Diagnostic ended the week with a gain of 27 per cent backed by spike in volumes on the announcement of a hefty dividend of Rs 97 a share on the face value of Rs 10 share (970 per cent) to be paid on December 22. The company operates in the medical diagnostics space, and sells reagents and equipment in the immunology, critical care and the haematology therapy areas. It has a strong position in the high-end, high-value segments of the immuno-diagnostics and hematology products. In half year ended FY07, the company's net sales grew 5 per cent and profit grew 10 per cent. In September, Siemens AG made an open offer to acquire an additional 20 per cent at Rs 629.45 per share as part of a plan to buy out the diagnostics business of Bayer AG. |
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