Despite serial blasts, hawkish stance by the RBI, mixed numbers from corporate earnings and higher inflation (11.98 per cent), the Indian markets displayed a mix of resilience and optimism, drawing strength from the bounce in global markets and decline in crude oil prices ($123).
The Sensex rose 381 points to 14,656, while the Nifty gained 101 points to 4413, in the week ended August 1. The 30-share benchmark did get a 557-points jolt on July 29, when the RBI raised the CRR by 25 bps and repo rate by 50 bps at its quarterly monetary policy review.
But the market recovered gradually during the week, possibly on the back of expectations that the reforms process would be speeded-up and the nuclear deal operationalised.
What to expect this week
With the earnings season drawing to a close and absence of any domestic triggers in the coming days, global equity markets and crude oil prices could decide the movement in the Indian bourses.
Investors would keep a close watch on US Federal Reserve’s meeting on Tuesday to get cues regarding movement of interest rates going forward.
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A lack of clear direction resulted in a poor July series rollover; Nifty rollover positions stood at 65 per cent (70 per cent in the previous series) while the single stock futures rollover positions were muted at 79 per cent (82 per cent in the previous series).
A thumbs-up given to the nuclear deal at the IAEA meet on Friday is a positive sign for the market in general and power and capital goods sector stocks in particular.
Stock to watch
Investors may turn bearish on the HCL Technologies scrip in the coming days, following the company’s announcement of a standalone net loss of Rs 13.54 crore for Q4 FY08 on account of foreign exchange losses. | ||||||||||||||||
The company recorded a net profit of Rs 391.23 crore in the same period last year. Results were declared on Friday after market hours. The current quarter included forex loss of about Rs 300 crore, while the year ago period had a forex gain of about Rs 250 crore.
On a consolidated basis, net profit declined by 71 per cent y-o-y to Rs 141 crore in Q4 FY08. For the full year ended June 2008, consolidated net profit declined 20.25 per cent y-o-y to Rs 1,051.4 crore on an increase of 25.5 per cent y-o-y in total income to Rs 7,755.5 crore. The stock made a 52-week high of Rs 336 on December 31, 2007 and 52-week low of Rs 180 on January 22, 2008.