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Markets at a glance

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S I Team Mumbai
Last Updated : Jan 29 2013 | 2:54 AM IST

Indian markets were came close to their October lows on the back of a relentless rout in the world equities and sustained selling by FIIs. World stocks fell on worries of a prolonged recession in Japan and on doubts about the survival of Citigroup Inc, the No. 2 US bank as well as the American car manufacturers. The markets however ended the week on a strong footing, on account of short-covering and remarks by Dr. Manmohan Singh that economy would grow at a rate of eight per cent.

The Sensex still lost 470 points or 5 per cent over the week to close at 8,915; down 56 per cent this year. The NSE Nifty on the other hand, declined by 117 points or 4.2 per cent to 2,693 for the week. The BSE Small-Cap and Mid-Cap indices were hit harder and tumbled by 9.9 per cent and 9.3 per cent respectively. FIIs have pulled out a net Rs 54,275 crore from Indian shares this year, with the outflow in the last week (until November 20) being Rs 1,866 crore.

What to expect this week

While it has become increasing difficult to predict the direction of the markets considering the fragile macroeconomic conditions world over, the market could embark on a relief rally and extend Friday's gains, feel marketmen. Expiry of November derivatives due this week could also trigger some short covering. However, the extent of upward move will depend a lot on the kind of newsflow that emanates from the West.

The market is expecting further rate cuts by the RBI and is also sensing a fiscal stimulus from the government that could provide relief to a number of sectors. While these developments could give rise to a snap rally, the broad outlook for the market continues to be negative due to the slowing domestic growth.

 

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Stock to watch
DABUR INDIA
Last week's close (Rs) 74.65 Prev. week's close (Rs) 85.40 Week's high (Rs) 86.08 Week's low (Rs) 73.48 Last week's ave. daily turnover (Rs cr) 14.24 Prev. week's ave. daily turnover (Rs cr) 6.90 Number of up/down move 0/5

Shares of Dabur India's (Dabur) could witness action on the bourses after the company's announcement that it would acquire 72.15 per cent stake in Fem Care - a leading player in the women's skin care products market.

While the offer price of Rs 800 per share is at 22 per cent premium to the current market price of Rs 656, the deal gives Dabur a headstart in the Rs 1,000 crore skin care segment. The acquisition would give Dabur an established brand name 'FEM' along with its diversified product portfolio and research capabilities.

The acquisition, which will be funded through internal accruals, translates into an equity valuation of Rs 282.4 crore and an EV of close to Rs 300 crore. Dabur would make an open offer for an additional 20 per cent stake in Fem Care and delist Fem Care subsequently.

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First Published: Nov 24 2008 | 12:00 AM IST

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