Markets at a glance

TRADING DESK

The market witnessed a sharp correction on concerns of rising interest rates and oil prices in the global market. Sensex lost about 500 points -- the largest weekly loss after February 2007.

During the last three trading sessions, FII were the net seller of Rs 330 crore followed by mutual funds at Rs 279 crore in last two trading sessions ending June7.

What to expect this week
Markets are likely to extend the weakness seen last week taking cues from the global markets. While profit booking is expected, the action may shift to the primary market, thanks to DLF's mega IPO, which seeks to mop-up anywhere between Rs 8,750 crore and Rs 9,625 crore. The rupee's movements vis-à-vis the dollar too would dictate the trend. 
 

Stock to watch

Stock to watch
Satyam Computers
Last week's close (Rs)	494.45
Prev. week's close (Rs)	478.48
Week's high (Rs)	508.28
Week's low (Rs)	453.13
Last week's ave. daily turnover (Rs cr)	243.87
Prev. week's ave. daily turnover (Rs cr)	141.80
Number of up/down move	3/2

Investors are quietly accumalating Satyam Computer Sevices, thanks to its cheap valuations and depreciating rupee. The stock trades at 19 times and 15.5 times for FY08 and FY09 estimated earnings respectively compared to its peers which trade at over 20 times and 17 times for the same period.

The company is on a rapid recruitment spree for expansion of its busienss. Depreciation of the rupee, which touched a one month low, spells good news for IT stocks, which were battered in the past few months. However Satyam has remained almost firm giving positive stock returns over the last one month, three month and six months.