The markets started the week on a strong note, buoyed by a 75 basis point cut in prime lending rate by some public sector banks. However, the markets lost momentum in the middle of the week on the back of negative global sentiments, profit booking and higher-than-expected inflation (10.72 per cent).
The Street finally ended the week on a high, boosted by rise in India's infrastructure sector output and the positive response by markets abroad to rate cuts by the Bank of England and the European Central Bank. India's infrastructure sector output grew by 5.1 per cent in September from a year earlier, well above the 2.3 per cent annual growth in August.
The BSE Sensex gained a slender 176 points or 1.80 per cent to 9,964, during the week that was extremely volatile in nature. The NSE Nifty on the other hand hand rose 87 points or 3.02 per cent to 2,973 in the week.
What to expect this week
Analysts expect the markets to extend Friday's gains further in this week but expect it to remain range-bound. The next big trigger could come from the IIP data for the month of September, which will be released on November 12 (Wednesday). Growth in core industries had dipped in August, tracking the overall decline in IIP to 1.3 per cent.
Sustained fall in crude oil prices to $60 mark and dollar depreciating to sub-Rs 48 levels are positive signs.However, concerns over health of the global economy and weak macroeconomic outlook with reports that companies have been cutting down on production will keep a tab on the upside.
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| Stock to watch Alembic Last week's close (Rs) 34.68 Prev. week's close (Rs) 30.00 Week's high (Rs) 35.90 Week's low (Rs) 28.13 Last week's ave. daily turnover (Rs cr) 0.46 Prev. week's ave. daily turnover (Rs cr) 0.28 Number of up/down move 3/1 Vadodara-based pharmaceutical firm, Alembic could tread in the positive territory in the coming days, as its board would meet on November 14 to consider buy back of equity shares. After the announcement on Friday, the stock closed 12.30 per cent higher at Rs 34.70. |
After the announcement on Friday, the stock closed 12.30 per cent higher at Rs 34.70. While anti-infectives contribute more than 50 per cent to Alembic’s domestic formulation sales, the company is gradually enhancing its presence in the high growth chronic therapeutic segments such as respiratory, orthopaedic and gynaecology in the last one year.
For Q2FY09, Alembic posted net sales of Rs 344.7 crore, registering a growth of 13.1 per cent y-o-y. Net profit however declined by 67 per cent y-o-y to Rs 15 crore, partly due to a forex loss of Rs 22.5 crore. The stock is trading at 4.3 times its 12-month trailing earnings.