Markets at a glance

Q3 FY07 results of auto, banking and telecom heavy-weights and the expiry of January derivative contracts helped the market to scale new life-time highs.

The Sensex reached a historical level of 14309.17 points in intra-day trading on Thursday. However, the markets remained subdued over the week with the Sensex and Nifty rising 100 points and 57 points to close at 14282 and 4147 respectively.

What to expect this week

After ending the week on a firm note, the market seems to be preparing for a pre-Budget rally. Market players expect the Sensex to achieve another life-time high of around 15000 points in the near term.

While media, auto and metals would be the sectors to keep an eye on, cement and PSU bank stocks may face some heat. Stocks like Zee Entertainment, Hinduja TMT, Hindalco and Titan Industries are to be closely watched.

Stock to watch 

Indiabulls Financial Services
Last week's close (Rs)	341.10
Prev. week's close (Rs)	294.35
Week's high (Rs)	347.18
Week's low (Rs)	293.03
Last week's ave. daily turnover (Rs cr)	197.73
Prev. week's ave. daily turnover (Rs cr)	165.99
Number of up/down move	4/0

Indiabulls Financial Services, the recently de-merged stock broking and consumer finance business, is witnessing heightened activity in the past few weeks and has gained 12 per cent ever since its re-listing on January 2.

The upward move is expected to continue, according to market experts, as it trades at 13 times its trailing 12-month earnings and looks quite reasonable.

While the stockbroking business is expected to grow at a stable pace, its consumer finance business is going to be the real growth driver. Indiabulls offers an entire range of consumer finance products to people in the lower middle income segment.

Though it is a high-risk high-return business, competition is less in this business. As long as the company manages to control non performing assets, margins will be high.