It was a special week for the Sensex, as it breached the 15,000 mark, while the Nifty crossed 4,400 points. Both the indices settled at their all time highs "� the Sensex at 14,964 points and the Nifty at 4,384.85 points. | |
| With expectations of interest rates peaking out, inflation at a low and the monsoon settled in, the overall sentiment has improved significantly, which may have sparked the rally. |
| |
What to expect this week
Movements in the Sensex during the week would take cues from Q1 results. The results to be announced during the week include Infosys on July 11 and Bajaj Auto on July 12. |
| |
| Global markets too, may play a significant role, as Asian markets hit record highs in the first week of July 2007. Rising oil prices could hold back the rally as London Brent crude nears the previous year's record high. Stock to watch | Paramount Communication | | Last week's close (Rs) | 35.85 | | Prev. week's close (Rs) | 30.08 | | Week's high (Rs) | 40.55 | | Week's low (Rs) | 30.80 | | Last week's ave. daily turnover (Rs cr) | 10.12 | | Prev. week's ave. daily turnover (Rs cr) | 1.95 | | Number of up/down move | 4/1 |
Paramount Communication seems to have regained its upward march after a severe beating between January and April 2007 and post its underperformance since April. The stock trades at 4.5 times its FY07 earnings. The optimism about the stock is also due to its robust performance in FY07 wherein net sales has jumped 61 per cent to Rs 313 crore. Operating profit has grown faster at 87 per cent to Rs 71.3 crore while net profit rose by 75 per cent to Rs 37.6 crore. Paramount Communication provides cabling solutions to power, telecom and IT, Railways, petrochemical and other industries. However most of its revenues come from the telecom segment, especially through jelly-filled telecom cables (JFTC) and optical fibre cables (OFC). The company has a flexible manufacturing capacity, which enables it to shift focus from one type of cable to another, depending on demand. |
|
| |
