Markets at a glance

Weak global markets and negative sentiments generated from certain proposals of the Union Budget 2007-08 meant that the bears were out in full swing.

Cement, IT and construction stocks were hammered as the finance minister proposed introduction of graded excise for cement, extension of MAT for IT companies, which didn't pay tax before, and withdrawal of certain tax concessions for the construction industry.

While the Sensex shed 746 points to close at 12886 points over the week, the Nifty fell by 212 points to settle at 3726.75 points.

What to expect this week

Global markets continue to be in a turmoil. The US markets declined further on Friday amid growing fears of a liquidity crunch and mortgage defaults.

There is little reason for the sentiment to turn positive as equity investors are turning risk-averse.

Going ahead, the advance tax numbers by the corporates and global market cues will drive the markets. Value buyers may emerge from the sidelines as stocks have fallen substantially.

Stock to watch 

ICI INDIA
Last week's close (Rs)	440.05
Prev. week's close (Rs)	450.40
Week's high (Rs)	457.50
Week's low (Rs)	410.50
Last week's ave. daily turnover (Rs cr)	0.39
Prev. week's ave. daily turnover (Rs cr)	0.25
Number of up/down move	1/4

ICI is a major paints, adhesives and specialty products company. The stock is worth looking at after the recent developments in the company.

ICI has sold its 100 per cent equity shareholding in Quest International India to Givaudan (India), a private company, and has received a consideration of Rs 320 crore on Friday. Despite the heavy correction in the market, the share price of ICI gained by 3.19 per cent and closed at Rs 440 on Friday.

The company said on Friday that it has received an interim dividend of about Rs 31 crore from Quest and is expected to receive a further consideration of about Rs 35 crore for various agreed adjustments in the next quarter.

The sale consideration is about Rs 78.43 per share. The company on account of rise in income from extraordinary items, reported a rise in net profits by 27.24 times to Rs 225.3 crore for the quarter ended December 2006.

It has also sold its advanced refinish paints business to PPG Asian Paints last month for a consideration of Rs 52 crore.