Weak global markets and rising crude oil prices provided no comfort as the markets once again closed on a losing note. | |
| Last week also saw the SEBI coming out with some much needed clarity on a range of issues from short selling by institutional investors to IPO grading and circuit stipulations on listing. |
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| The Sensex closed 213.8 points (1.6 per cent) down over the week to end FY07 at 13072.1 points while the S&P CNX Nifty lost 39.5 points (1 per cent) to end the week at 3821.55 points. |
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| What to expect this week |
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| RBI's announcement to hike the repo rate and the CRR will have a negative impact on the markets. Market participants expect the Sensex to open weak on Monday and continue to remain under pressure for the rest of the week. The hike in repo and CRR will hit banking and auto stocks more, which are expected to fall. |
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| Though the markets may decline, investors should be cautious, as there are no positive factors. Going forward, the market will now be driven by fourth quarter results expectations. |
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| Stock to watch | Eveready Industries | | Last week's close (Rs) | 66.8 | | Prev. week's close (Rs) | 60.2 | | Week's high (Rs) | 69.6 | | Week's low (Rs) | 58.6 | | Last week's ave. daily turnover (Rs cr) | 5.5 | | Prev. week's ave. daily turnover (Rs cr) | 0.2 | | Number of up/down move | 3/1 |
Battery major Eveready Industries could well be worth looking since its phenomenal move on the bourses last week. After touching its 52-week low levels of Rs 58 on Thursday, the stock rebounded sharply to Rs 67 levels closing with a weekly gain of 11 per cent. Moreover, the stock has seen a continous upside in its closing price with a consistent rise in volumes. The stock has been a major underperformer in the last one year mainly due to its weak financials in the last few quarters led by the rising input costs (read soaring zinc prices in the year 2006) and the company's inability to pass on the entire costs. However, the worst seems to be over and the situation is expected to improve going forward as the demand is expected to be robust and zinc prices are unlikely to touch skyrocketing levels again. Eveready commands a 44 per cent market share in the dry cell battery market. |
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