Markets at a glance

Crossing 16,000 points was an important milestone for the Sensex last week. For the week ended September 21, the Sensex gained 960.43 points to close at 16,564.23 points, over six per cent higher, while the Nifty rose 319.55 points, to 4,837.55 points "� up seven per cent.

The rally followed the US Federal Reserve announcement of a rate cut by 50 basis points, which could trigger a new flow of liquidity in global markets thereby, easing the credit crisis.

What to expect this week
Analysts expect profit booking to set in this week, as a number of counters scaled new highs. The slide of the dollar below Rs 40 may trigger selling in information technology and export oriented companies' stocks again.

Add to this, crude oil prices which had risen to a high of $84.10 and settled at $82 a barrel are a cause for concern as they will stoke higher inflation. Markets will seek direction from impending corporate results.

Stock to watch

KARNATAKA BANK
Last week's close (Rs)	222.23
Prev. week's close (Rs)	209.65
Week's high (Rs)	229.6
Week's low (Rs)	208.13
Last week's ave. daily turnover (Rs cr)	17.19
Prev. week's ave. daily turnover (Rs cr)	20.72
Number of up/down move	4/1

Among the mid-cap banking stocks, Karnataka Bank is attracting lot of investors' attention. The stock has shot up by 33 per cent in last one month and has outperformed the Bankex (up 19 per cent) and Sensex (up 18 per cent).

The stock trades at less than 1.5 times its earnings for FY08 and FY09. Last month, the bank announced its plans to enter online broking business in association with a reputed firm.

It also has plans to enter the life insurance business.The bank has witnessed robust profitability in the June 2007 quarter. While net interest income grew 30 per cent to Rs 125 crore, net profits jumped 41 per cent to Rs 52 crore.