Markets at a glance

TRADING DESK

It was another volatile week with a second weekly loss for the markets, in spite of gains on four out of five trading sessions. The Sensex shed 96 points, settling at 15,138.40 - 0.63 per cent lower compared to the previous week's close.

The Nifty lost 44 points and closed 0.96 per cent lower at 4401.55 points. Information technology and automotive stocks were on a downtrend, while banking and capital goods stocks gained marginally.

What to expect this week
In spite of the domestic bourses being awash with liquidity, the indices have been moving in tandem with global markets, which is likely to continue over this week.

Strong macroeconomic drivers, money raised by asset management and insurance companies which is likely to be routed to the equity markets and decent corporate earnings continue to support a healthy undercurrent for a potential uptrend.

Stock to watch

BALLARPUR INDUSTRIES
Last week's close (Rs):	133.80
Prev. week's close (Rs):	131.65
Week's high (Rs):	141.13
Week's low (Rs):	125.50
Last week's ave. daily turnover (Rs cr):	17.82
Prev. week's ave. daily turnover (Rs cr):	25.04
Number of up/down moves	3/2

Ballarpur Industries has plans to restructure the undertakings of the company, split its shares and buyback 40 per cent equity shares from all its shareholders. Under the reorganisation scheme, the company plans to hive off its commodity paper business into a separate subsidiary.

The stock-split will be in the ratio of 1:5, dividing the face value of its share from Rs 10 to Rs 2 per share, reducing the total number of shares outstanding from 18.61 crore to 10.71 crore. This reorganisation is aimed at generating a higher valuation for its commodity paper business.

The company had acquired plantations in Malaysia last year, and has a sizeable forest inventory and captive pulp. Further, it has plans in place for expansion of its captive power generation company Bilt Power, at an investment of Rs 6,000 crore.

With strong value unlocking potential and a good past track record of the company, analysts believe there is a potential upside for the stock from its current levels. At Rs 133.80, the stock trades at about 9 times its estimated FY08 earnings.