What to expect this week

Buying support from investors, robust inflows from FIIs, a benign monetary policy and strong second quarter earnings boosted the sentiment and catapulted the markets to all-time highs.

The markets may continue their northward march backed by liquidity, though there could be increased volatility. While the rally is concentrated in large-caps so far, mid-caps and small-caps are likely to see more action.

Since markets are at new highs, some investors may see this as an opportunity to book profits at higher levels.

Stock to watch 

Bombay Rayon Fashions
Last week's close (Rs)	215.83
Prev. week's close (Rs)	206.55
Week's high (Rs)	224.30
Week's low (Rs)	193.73
Last week's ave. daily turnover (Rs cr)	40.49
Prev. week's ave. daily turnover (Rs cr)	22.52
Number of up/down move	3/2

Bombay Rayon Fashions, an integrated fabric and garment manufacturer, is expected to witness some action among the textile stocks.

Though the stock has not moved much last week, it has shot up by 20 per cent in one month. If market rumours of the company entering the retail business is true, then it will be a feather in its cap.

According to experts, the company is scouting for real estate developers for retailing through malls.

Stock of the week 

Bajaj Auto Finance
Last week's close (Rs)	484.07
Prev. week's close (Rs)	390.00
Week's high (Rs)	497.50
Week's low (Rs)	390.00
Last week's ave. daily turnover (Rs cr)	1.74
Prev. week's ave. daily turnover (Rs cr)	0.13
Number of up/down move	5/0

Bajaj Auto Finance leapt by 24 per cent last week with huge volumes on NSE and zipped past the broader index ever since its announcement of the rights issue.

The stock has been a major underperformer since the beginning of 2006. It has decided to raise close to Rs 900 crore with the issue of rights shares in the ratio of 6 shares for every 10 shares, 5.25 million debentures and warrants, convertible at Rs 500 per share.

The proceeds from the issue will be used for expansion and retirement of high-cost debt.