Market at a glance

The markets continued their northward run, backed by continued buying support from FIIs. RBI's draft circular on tighter guidelines for banks' capital market exposure, did act as a dampener.

However, firm Asian markets and renewed buying in blue-chip companies provided support. During the week, the Sensex gained 274 points or 2 per cent to settle at 13,703.33 points. The Nifty gained 98 points or 2.5 per cent to close the week at 3,950.85 points.

What to expect this week

After a rise for seven consecutive weeks, the markets are expected to witness some profit booking at higher levels. Volatility will creep in ahead of derivatives expiry.

FIIs are likely to continue buying and will provide some support to the markets. Real estate stocks will continue to be favourites and media stocks could become popular this week. Though market experts are bullish, they advise investors to exercise caution.

Stock to watch 

Kesoram Industries
Last week's close (Rs)	540.02
Prev. week's close (Rs)	541.50
Week's high (Rs)	571.70
Week's low (Rs)	497.50
Last week's ave. daily turnover (Rs cr)	23.63
Prev. week's ave. daily turnover (Rs cr)	30.22
Number of up/down move	3/2

Cement and tyre major, Kesoram Industries looks attractive as it is trading at a price to earnings multiple of 10.3 times and 8.3 times for FY07E and FY08E respectively despite more than doubling in last six months.

In H1FY07, net sales grew 28 per cent to Rs 989 crore and net profit jumped eight fold to Rs 120 crore thanks to higher cement volumes and higher realisation in the cement and tyre division.

The company is a key beneficiary of a robust outlook in both cement and tyre industry.

It is expanding two of its cement plants which will be completed by December 2006 and FY09 respectively. It is putting up a greenfield tyre capacity in Uttaranchal with a 250 tonne capacity for Rs 650 crore.

Stock of the week 

IVRCL Infrastructure
Last week's close (Rs)	424.20
Prev. week's close (Rs)	325.02
Week's high (Rs)	427.95
Week's low (Rs)	315.50
Last week's ave. daily turnover (Rs cr)	257.17
Prev. week's ave. daily turnover (Rs cr)	75.77
Number of up/down move	5/0

IVRCL Infrastructures shot up by 30 per cent followed by higher volumes on the rumours that the company may sell a part of its stake (about 10 per cent) in the real estate subsidiary IVR Prime to raise Rs 400 crore through pre-IPO private placement, and has initiated talks with a clutch of private equity funds such as Carlyle, Standard Chartered, ICICI Venture and Kotak though the company denied any such plans.

However it confirmed that it was looking at hiving off IVR Prime into a separate entity and come out with an initial public offer.

IVR Prime is the urban development arm of the company and has plans to develop two crore sq feet of space in the next three years at an investment of Rs 1,000 crore.