Stock markets may see consolidation as market players could book profits at higher levels. | |
| FIIs have been buyers last week, and their sustained buying will support the markets. However, a further rise in crude prices could be a deterrent. |
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| Cement and real estate stocks are likely to see buying momentum. However, with the rupee rising against the dollar, exporters, especially the IT sector, may take a backseat temporarily. |
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| Mid-cap stocks, which have lagged behind large-caps, are likely to attract attention. |
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| Stock to watch | Onward Technologies | | Last week's close (Rs) | 66.78 | | Prev. week's close (Rs) | 56.18 | | Week's high (Rs) | 74.83 | | Week's low (Rs) | 54.30 | | Last week's ave. daily turnover (Rs cr) | 8.56 | | Prev. week's ave. daily turnover (Rs cr) | 0.31 | | Number of up/down move | 3/2 |
The stock of Onward Technologies shot up and coupled with a spike in volumes closed with a weekly gain of 19 per cent. There was a bulk deal of about 99,000 shares at Rs 65 on Wednesday. The company has been a major underperformer for the past one year. Onward provides software solutions to the banking and process engineering industries like petrochemicals and oil. |
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| Stock of the week | India Infoline | | Last week's close (Rs) | 288.40 | | Prev. week's close (Rs) | 208.35 | | Week's high (Rs) | 305.90 | | Week's low (Rs) | 208.00 | | Last week's ave. daily turnover (Rs cr) | 150.67 | | Prev. week's ave. daily turnover (Rs cr) | 23.11 | | Number of up/down move | 4/1 |
India Infoline shot up by 38 per cent over the week on rumours of a strategic stake sale to foreign brokerages though the company has denied it. DSP Merrill Lynch Capital and Citigroup Global Markets Mauritius already hold a 4.25 per cent and 7.03 per cent stake in the company. With buoyant Indian equity markets, foreign players are increasingly evincing interest in Indian brokerage firms, like in IL&FS Investsmart and Geojit Securities recently. The company has seen the biggest rise in last three months as compared to its peers mentioned above and its stock price is up by 60 per cent in a month. No wonder, the stock is quoting at a higher valuation of 30 times its annualised half yearly EPS for FY07. |
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