Markets at a glance

The markets witnessed an overdue correction after the Sensex crossed the 8500 mark for the first time on Tuesday. On Thursday, Sensex plummeted 265 points, recording the biggest single day fall since May 17, 2004.

During the week, Sensex shed 158.4 points and closed at 8,222.6, while Nifty shed 74.6 points to end at 2,477.8. The mood was cautious following a further hike in US rates by the Federal Reserve.

An increase in global crude prices and the stricter vigil from Indian stock market regulators, also affected sentiment.

200 point swings were the norm rather than the exception last week. Friday bought some cheer to the markets after a 260 point fall on Thursday.

Not that the Sensex soared again after another 200 point see-saw, but it closed with a gain of one point to end the week at 8222, much below its Tuesday peak of 8,500.

While profit booking was generally blamed for the sharp correction, the markets were unnerved by raids conducted on some brokers for possible violation of rules. However, frangipani and desi funds kept up buying support, which prevented further damage.

Metro Fund decided to buy The South Indian Bank stock at Rs 76 levels. The fund is said to have bought more than 2.8 lakh shares in a recent deal. Apparently, the fund is impressed by the bank's improving fundamentals.

The Thrissur-based bank recently mopped up Rs 65 crore by way of Tier II Bonds for augmenting additional capital for business expansion. Also, the bank has decided to strengthen its focus on serving NRIs and is planning to set up offices in West Asia and has rolled out exclusive products for the NRI community.

The Paris bank's investment arm has decided to book profits at the Videocon International counter. The fund sold more than four lakh shares at Rs 98 levels. The decision comes after the stock price has more than doubled since the start of May to its current 52-week high levels.

Markets witnessed a major correction with the Sensex declining 158.40 points last week. Majority of index constituents ended the week in red. HDFC proved to be the biggest drag on the Sensex. The scrip lost 10.20 per cent to close the week at Rs 955.90, thereby shaving off 44.13 points from the index.

Bharti Tele, Reliance Industries and Infosys were the other big contributors to the Sensex fall. The combined losses in these stocks took away 71.16 points from the index.

On the other hand only five stocks ended the week with gains. Majority of these gains came at two counters, viz, ICICI Bank and ITC. The gains in the former added 65.24 points to the overall index, while those in ITC added 57.93 points.

Compared to the previous week when all sectoral indices ended the week with gain, all bar one closed in the red last week. BSE Consumer Durable index posted the maximum losses, declining 8.86 per cent during the week.

The losses came mainly on the back of declines in top three stocks in the index, Titan Industries, Blue Star and Vidoecon International. BSE Metal (down 4.82 per cent) and BSE TECk index (down 4.44 per cent) were the other big losers. The only index to post gains was BSE FMCG index which benefitted from gains at the ITC counter.

US markets rallied on Friday, but benchmark indices ended the week lower. For the week, the Dow lost 2.09 percent to close at 10,419.59, while the Nasdaq ended 2.01 percent lower at 2,116.84. Investor sentiments were damp on worries about the impact of Hurricane Rita. Markets plunged earlier in the week, weighed down by concerns about an economic slowdown as oil prices edged near record levels and following the Federal Reserve's decision to raise US rates further.

What to expect this week

Markets are likely to witness volatility going forward, say analysts. This trend is likely to continue at least in the near term, till the expiry of September 2005 derivatives contracts on September 29.

Meanwhile, FIIs continue to pump in money into Indian stocks. For instance, on September 22, even when the Sensex lost 265 points, FIIs bought shares worth Rs 514.4 crore.

From Monday, many stocks from B1, B2 and S group, will attract 100 per cent upfront margin.

Stock of the week

Pidilite Industries
Last week's close (Rs)	93.13
Prev. week's close (Rs)	69.98
Week's high (Rs)	99.85
Week's low (Rs)	70.80
Last week's ave. daily turnover (Rs cr)	13.13
Prev. week's ave. daily turnover (Rs cr)	3.73
Futures close	NT
Number of up/down move	5/0

In a week when declines dominated advances, Pidilite Industries was among the few scrips that posted big gains. The stock closed Friday at Rs 93.13, a 33.08 per cent jump from its previous weekend close. The stock touched a 52-week high of 99.85 on Thursday. The volumes at the counter also showed a 225 per cent rise.

Market players noted that the upsides a the counter have come after the company approved sub-division of its equity share of the nominal value of Rs 10 each into 10 equity shares of Re 1 each.

Also, the company recently announced the launch of Fevicol, it's Rs 400 crore flagship brand of Pidilite Industries in Egypt. Fevicol is already being exported to over 20 countries in Africa, Middle East and the SAARC region.

After announcing its launch in Egypt, the company plans to launch the brand in Pakistan, Indonesia and Myanmar as well. The company plans to take Fevicol to 20 more countries in the next couple of years.