Indian bourses underperformed several global peers due to lack of positive triggers. The Finance Minister’s statement that India can move ahead towards full convertibility of the rupee in a calibrated way boosted sentiment. The rise of industrial output to 16.7 per cent in January 2010 from a year earlier, slightly stronger than market expectations, was also a positive sign.
The food price index rose to 17.81 per cent, marginally lower than an 17.87 per cent in the previous week. FIIs bought stocks worth Rs 7,820 crore in March. Overall, BSE and NSE added 1 per cent each during the week on the back of reduced market volumes and volatility suggested declining investor interest.
Markets this week
Investors will look at advance tax numbers of Indian corporates, as the fourth and the last installment of advance tax is due on March 15, 2010. After a surge in industrial production in January, 2010, the next major data is of monthly inflation for February, 2010, to be released on March 15, 2010.
The headline inflation is seen surging to around the 10 per cent mark for February, 2010 from a rise of 8.6 per cent in January, 2010. A rate hike before the next scheduled policy review in April 2010 looks unlikely after RBI deputy governor recently said it would be premature to take any mid-term policy action.
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| Stock to watch GODREJ CONSUMER PRODUCTS Last week’s close (Rs) 270.93 Prev. week’s close (Rs) 256.97 Week’s high (Rs) 276.00 Week’s low (Rs) 255.28 Last week’s ave. daily turnover (Rs cr) 2.64 Prev. week’s ave. daily turnover (Rs cr) 1.22 Number of up/down move 4/1 Shares of Godrej Consumer Products (GCPL) could come into play after the FMCG major bought over Nigerian personal care company, Tura. Though the company did not specify the acquisition amount, it is estimated that GCPL paid Rs 300-Rs 500 crore for the acquisition. Tura would not only help GCPL to enter the Nigerian market, but also build a pan-African presence for core categories such as personal wash and hair care in these markets. |
The present management team at Tura is expected to continue to lead the business. GCPL has already made its plans clear of acquiring the global household business of its earlier partner, Sara Lee. At Rs 270.95, the stock trades at 34 times its 12 month trailing EPS of Rs 8.