Gains on the back of a steep correction in crude oil prices and lower inflation were wiped off by weak global sentiments and fresh controversy around the Indo-US nuclear deal.
The Sensex declined by 81 points or 0.55 per cent to settle at 14,484 while the Nifty lost 8 points or 0.17 per cent to close at 4,352, during the curtailed trading week. While oil prices fell below the $105 mark during the week, the inflation retraced to 12.34 per cent.
But reports emerged that US will terminate the Indo-US nuclear deal if India conducts a fresh nuclear test, thus creating anxiety among investors.
To make things worse, stocks across the globe fell sharply last week, on global economic growth worries. FIIs and mutual funds have bought shares amounting to Rs 767 crore and Rs 159 crore respectively this month (till September 4).
What to expect this week
After positive cues from trends in crude oil prices and domestic inflation, markets could open on a positive note after Nuclear Suppliers Group (NSG), approved the Indo-US nuclear deal.
On Monday, the markets will also weigh in the high US unemployment rate of 6.1 per cent. Vital cues on crude oil price movement could emerge from OPEC's meeting on September 9 to cut the elevated levels of production or keep it unchanged.
Political worries may impact the domestic bourses after the BJP accused Dr. Manmohan Singh of misleading the country on the nuclear deal issue and demanded his resignation.
Stock to watch
Lok Housing could attract the attention of investors in the next few days, as the Supreme Court has cleared a Maharashtra development control regulation allowing realtors to enjoy Floor Space Index (FSI) of three to seven times. | ||||||||||||||||
According to reports, about 19,642 old (pre-1940) buildings in South Mumbai will now be available for redevelopment. Earlier, the company had submitted a proposal to the Maharashtra government for providing transit accommodation for reconstruction and rehabilitation of tenants of about 300 most unsafe buildings in Mumbai and replacing its with 6 mn sq. ft. of area.
A three-fold jump in volumes was seen on Friday compared to its two week average volumes of 2.68 lakh shares. The stock rose around 4 per cent in the last one week whereas the Sensex was marginally down in the same period. At Rs 51.15, the stock is trading at a P/E of 1.95 on FY08 EPS of Rs 26.32. The scrip hit a 52-week high of Rs 390.50 on January 1 and a 52-week low of Rs 41 on July 8.
