The Sensex slumped 454.59 points this week, closing at 12,430.40, while the Nifty dropped by 109.45 points closing at 3,608.55 "� largely driven by the movements in global markets. | |
| Although the markets rose in three out of five trading sessions, volatility haunted investors as FIIs and mutual funds remained net sellers. |
| |
| Rising inflation and worries regarding high interest rates too, played villains. IT, real estate, oil and gas, banking and pharma stocks led the slump. The two IPOs of the week too, listed below their issue prices. |
| |
| What to expect this week |
| |
| The bearish outlook continue to extend for this week as well, however market participants do not see heavy selling and possible buying is expected at lower levels. |
| |
| Last week's inflation number at 6.46 is not very encouraging for the market. The market is now looking at March 2007 results to provide direction. Meanwhile, sectors like information technology, banking and cement may provide some cushion as they have fallen a lot. |
| |
| Stock to watch | INDIA CEMENTS | | Last week's close (Rs) | 158.00 | | Prev. week's close (Rs) | 153.25 | | Week's high (Rs) | 165.00 | | Week's low (Rs) | 142.98 | | Last week's ave. daily turnover (Rs cr) | 199.65 | | Prev. week's ave. daily turnover (Rs cr) | 154.32 | | Number of up/down move | 3/5 |
Amid selling across the cement counters on account of the negative budget proposal and government intervention in cement prices, the share price of India Cements dropped by almost 43 per cent from its recent high of Rs 254.80 to Rs 145.65 per share last week. With HSBC Global Investment Fund buying 20 lakh shares at Rs 155.35, the stock recovered closing the week at Rs 158 per share. Considering the steep fall, market participants believe that the value buying, started by HSBC, is likely to continue this week. Analysts believe that the macro outlook continues to be good in the South with strong demand growth of 16.8 per cent y-o-y for the period April-December 2006. The South is expected to face a deficit of 1.2 million tonne of cement till 2009. This is expected to benefit India Cements, which is a leading player in the south India market. At the current price of Rs 158, the stock is trading at PE multiple of 9.75 times its trailing twelve month earnings. |
|
| |
