Markets at a glance

TRADING DESK

Last week, market movements were volatile but had a positive bias amid lower production growth numbers, easing of political worries on the nuclear issue and the US assurance about its capability to absorb credit crisis shocks.

Despite gaining in only two out of five trading sessions, markets ended with gains of a little over four per cent. Sensex and Nifty were up by 790 points and 250 points at 19,698.36 and 5,906.85 respectively led by banking, capital goods, power and oil and gas stocks. Mid and small-cap companies stole the show with its indices gaining more than six per cent each.

What to expect this week

The markets do not seem to have any negative triggers. But Sensex valuations at about 19.5 times for FY09 estimated earnings of 30 companies will keep the market on its toes.

After being net sellers initially in the month, foreign institutional investors have resumed buying in the last few trading sessions.

Despite inching up a bit, inflation has been benign at 3.11 per cent as compared to 5.45 per cent in the same period last year. The most important factor for the market is the softening of the Left's stand on the Indo-US nuclear deal .

Stock to watch  

TATA COFFEE
Last week's close (Rs)	274.08
Prev. week's close (Rs)	238.80
Week's high (Rs)	286.85
Week's low (Rs)	232.18
Last week's ave. daily turnover (Rs cr)	1.31
Prev. week's ave. daily turnover (Rs cr)	0.17
Number of up/down move	4/1

Tata Coffee, the 57.5 per cent subsidiary of Tata Tea, gained 15.6 per cent last week backed by a surge in volumes in the last few trading sessions. The stock has underperformed the broader market declining by 10 per cent vis-a-vis Sensex gain of 46 per cent.

Market participants are positive on the stock amid firm coffee prices and the benefits accruing from the acquisition of US-based third largest coffee brand, Eight O'Clock coffee in the long term. Eight O'Clock has over 85 years of brand history and retail coffee experience in the US.