While the buoyant advance GDP estimates from the Central Statistical Organisation and stepped up FII buying provided positive cues, concerns over rising inflation, weak metals and surging crude oil prices meant that the bears were out in full force by the end of the week. | |
| Overall, while the Sensex lost 135 points to close at 14,539 points on Friday, the Nifty was down 36 points to close at 4,187 points. |
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| What to expect this week |
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| The positive impact of December 2006 results is factored in by market participants and now Budget expectations are likely to be the key drivers. Rising inflation and interest rates are a cause of concern as this could impact the market negatively. |
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| FIIs are likely to slow down fresh investments and traders may unwind positions further. Expect some profit booking. Property stocks may decline this week. |
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| Stock to watch | HT MEDIA | | Last week's close (Rs) | 185.05 | | Previous close (Rs) | 182.18 | | Week's high (Rs) | 203.18 | | Week's low (Rs) | 171.35 | | Last week's ave. daily turnover (Rs cr) | 5.15 | | Prev. week's ave. daily turnover (Rs cr) | 3.60 | | Number of up/down move | 2/3 |
HT Media's stock is gaining attention these days as the company has reported a top line growth of over 20 per cent year-on-year in each quarter since June 2006. In the December 2006 quarter, the company has registered a two-fold increase in its net profit at Rs 33.57 crore. Its operating profit went up from Rs 40.8 crore in Q3 FY05 to Rs 63.97 crore in Q3 FY06, an increase of 56.79 per cent. The company recently revamped its Hindi publication and launched a new business daily in partnership with the Wall Street Journal, and has plans to launch a radio initiative with Virgin Radio of the UK. The stock trades at 7.3 times estimated FY07 earnings, which is very cheap in comparison to Deccan Chronicle Holdings, which trades at about 57 times estimated FY07 earnings. |
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