The markets began on a weak note with the BSE Sensex closing at its six-week low on Monday. Later, robust advance tax numbers triggered a rebound in the broader indices. Corporate advance tax payments for the quarter were up 44 per cent to Rs 48,300 crore against a decline in June quarter and a 15 per cent increase in September quarter. The market gained in three out of the four trading sessions in the week. While volumes were low ahead of an extended weekend on account of Christmas. FIIs bought stocks worth Rs 1,360 crore. The Sensex rose 640 points or 3.8 per cent to 17,361, while Nifty gained 190 points or 3.9 per cent to 5,178. However, mid caps and small caps underperformed.
Markets this week
The markets, which are at a 19-month closing high, could see further gains believe analysts. Robust advance tax numbers and government voices regarding a sustained growth momentum in the Indian economy is positive. Trading this week would be truncated due to Moharrum that falls on Monday. Nevertheless, equities may remain volatile in the derivative segment ahead of December expiry. The trading volumes are expected to be lower as foreign and local investors go on a year-end vacation. Overall, FIIs have bought stock worth $1.3 billion in December and around $12 billion in the last six months.
| Stock to watch GAMMON INDIA Last week's close (Rs) 239.80 Prev. week's close (Rs) 237.83 Week's high (Rs) 247.90 Week's low (Rs) 234.25 Last week's ave. daily turnover (Rs cr) 3.65 Prev. week's ave. daily turnover (Rs cr) 7.59 Number of up/down move 1/3 With one of Gammon’s under-construction bridges collapsing on Thursday, the stock may come in focus this week. This bridge is being constructed over Chambal River (Kota district) in partnership with Hyundai Engineering. Legal action and penalties could follow if Gammon is found to be negligent. A few months back, an under-construction flyover of Delhi Metro project being built by Gammon had collapsed. For now, the extent of the damage is not known. However, the markets could react negatively. The incident may prove to be an overhang on the stock’s prospects in short term, which is trading at 19 times trailing 12 month EPS. |