Robust IT results, good monsoon forecasts and recovery in the global markets had a ripple effect on the Indian bourses. The Sensex gained 513 points or 3.83 per cent to end at 13,897 points. | |
| All sectors, except information technology witnessed a rally. While banking stocks saw some value buying at low levels, cement stocks gained on strong fourth quarter results. However, rising rupee marginally affected IT stocks. |
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| What to expect this week |
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| The markets are expected to remain volatile due to expiry of April derivatives contracts. |
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| Moreover, market experts are keenly awaiting the outcome of Reserve Bank of India's monetary policy review slated on Tuesday, April 24. The general consensus is that the central bank will hold interest rates steady. |
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| On the results front, heavyweights like Maruti Udyog, Reliance Industries and Ranbaxy Laboratories will be announcing their quarterly results on April 24, 26 and 27, respectively. |
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| Stock to watch | STERLING BIOTECH | | Last week's close (Rs) | 170.98 | | Prev. week's close (Rs) | 143.88 | | Week's high (Rs) | 175.85 | | Week's low (Rs) | 143.05 | | Last week's ave. daily turnover (Rs cr) | 49.40 | | Prev. week's ave. daily turnover (Rs cr) | 19.15 | | Number of up/down move | 3/2 |
Volumes on the Sterling Biotech counter went up and the stock ended the week with a gain of 19 per cent as the company announced good fourth quarter results and raised bonds for expansion. While net sales jumped about 30 per cent year on year (y-o-y) to Rs 174 crore in the quarter ended March 2007, the net profit grew about 26 per cent to Rs 38.06 crore. The company also issued zero per cent Foreign Currency Convertible Bonds (FCCBs) aggregating $250 million due by the year 2012 and expected to be listed on the Singapore Stock Exchange. The bonds are convertible into equity shares of the Company any time after June 18, 2007 at a conversion price of Rs 204.576 per share. Due to these positive developments, the company is expected to see some movement in the stock with the positive bias given its underperformance in the last three months. |
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