Broader indices consolidated gains of previous weeks with BSE Sensex moving up 5.3 per cent to close at 14,625 and Nifty notched gains of 5 per cent to 4,449. While the Nifty rose 99 points in the first four days, on Friday, it notched up an impressive 112 points jump.
The Friday surge was fuelled by India's GDP growth that expanded to 5.8 per cent year-on-year in the March 2009 quarter. However, GDP grew slower at 6.7 per cent for FY09 compared to 9 per cent in FY08. Net purchases of Rs 5,530 crore by FIIs also helped the bulls take control.
Markets this week
Favourable economic data may help the markets extend their twelve-week gains. With election uncertainty out of the way indices could look at global cues, foreign inflows and the progress of monsoon for further direction.
Nevertheless, a section of the analysts believe that markets might see a correction on account of stiff valuations. President's address to the Lok Sabha on June 4 could give some indication of the government’s agenda. Announcement of May sales figures should see some action in the auto and cement stocks.
STOCK TO WATCH
Better than expected annual results for Voltas could bring the stock into play this week. Net profits for the air conditioning and engineering services company grew 21 per cent in 2008-09 to Rs 251 crore while total income rose 37 per cent to Rs 4,400 crore. | ||||||||||||||||
On Friday, the company announced that it has won orders worth Rs 300 from Kolkata and Chennai International Airports. Excluding these, its order book stands at Rs 4,720 crore as of March 31, 2009. The total order book at 1.2 times its FY 2008-09 sales provides good visibility.
More From This Section
At Rs 98, the stock is trading at 14 times its twelve month trailing EPS of Rs 7.