The optimism in the global financial markets has helped the Sensex inch past the sentimental 10,000-point barrier. The BSE Sensex spurted 1,082 points or 12.06 per cent to end the week at 10,048 and the Nifty jumped 302 points or 10.74 per cent to 3,109. Mid and small cap indices registered smaller gains at 6.3 per cent and 4 per cent respectively, compared with broader indices.
Apart from positive global cues, inflation stood at 30-year lows decreasing from 0.44 per cent to 0.27 per cent for the week ended March 14, 2009. FIIs, who were the major sellers over the last year, made net purchases of around Rs 1,315 crore in the week. Short covering in the expiry week has also helped to end the week with major gains.
Markets next week
The markets have spurted around 23 per cent from the earlier lows in March. Experts feel that profit-booking could be the order of the day. The political uncertainty ahead of elections would be a dampener. On the macro front, worsening fiscal deficit, slower GDP growth are concerns along with declining corporate profits.
As per estimates, exports for February are down by 13.7 per cent, which would mean a fall for the fifth straight month indicating that global economic slowdown woes are far from over. Inflation on the downward journey has raised expectations of a further easing of the monetary policy. The extent of FII buying in the future will decide the fate of the present upturn.
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| STOCK TO WATCH ONGC Last week's close (Rs) 1,548.38 Prev. week’s close (Rs) 1,338.88 Week’s high (Rs) 1,582.70 Week’s low (Rs) 1,352.00 Last week’s ave. daily turnover (Rs cr) 1,422.74 Prev. week’s ave. daily turnover (Rs cr) 825.16 Number of up/down move 4/1 Reliance Industries (RIL) shares will be in the limelight on announcement late last week that the company has entered into gas sales and purchase agreements with twelve fertiliser sector players. These include public and private sector units such as NFCL, RCF, IFFCO, GNFC and Tata Chemicals. The signing of agreements with customers is a precursor to the initial start of gas production of around 15 mmscmd in April. RIL is expected to reach peak production of 80 mmscmd in a year’s time. |
RIL would sell gas to the companies at $4.20 per mmbtu for a period of five years. Reliance Gas Transportation Infrastructure, a group company along with GAIL and GSPC will be transporting gas to the fertiliser companies. At Rs 1,548, the stock is trading at around 15 times of its trailing EPS.