Markets at a glance

The market exhibited a strong upward trend despite minor hiccups largely driven by strong institutional buying, short covering ahead of the expiry of May derivative contracts and firm global markets.

While the Sensex closed with a gain of 232.3 points at 14570.75, the Nifty was up 48.9 points to touch a lifetime high close of 4297.05 on Friday. Most of the mid-cap and small-cap stocks also witnessed heavy buying.

What to expect this week

Market players are cautious as liquidity will reduce in the secondary market due to mega public issues by companies like DLF and ICICI Bank.

Also, other real estate and banking stocks are also expected to witness some re-rating. Arrival of monsoons and its progress will also help in determining the market trend.

The momentum remains strong, and foreign investors continue to remain buyers, which are positives.

STOCK TO WATCH 

SHASUN CHEMICALS
Last week's close (Rs)	123.6
Prev. week's close (Rs)	98.3
Week's high (Rs)	137.3
Week's low (Rs)	96.3
Last week's avg daily turnover (Rs cr)	10.0
Prev. week's avg daily turnover (Rs cr)	0.7
Number of up/down move	3/2

Volumes on the Shasun Chemcials' counter have been rising followed by a spike in the stock price. The stock gained 26 per cent in the last week and over 25 per cent in the last one month after being a market performer.

Yet, the stock is attractively valued at 9.9 times estimated FY08 earnings. The company's consolidated revenues more than doubled to Rs 793 crore in FY07 even as its profits jumped 41 per cent to Rs 52 crore, thanks to the turnaround of operations in its UK-based subsidiary Rhodia in the first year after acquisition.

Chennai-based pharma major Shasun Chemicals and Drugs is a leading pharma company focused on manufacturing finished dosage, active pharmaceutical ingredients and intermediates to global pharma firms.

The acquisition of Rhodia has enabled the company to have a global presence in active pharmaceutical ingredients (APIs), custom synthesis and contract manufacturing catering to innovator and emerging pharmaceutical clients in US, Europe and Asia.