Anxiety and uncertainty over the approval of the bailout package by the US House of Representatives kept the market on edge. On Monday, the House rejected the bill, sending the Dow industrials plunging 777 points.
The bill was however voted on again and got an approval on Thursday, but markets continued to tread downwards. With the US Congress giving its nod to the Indo-US civil nuclear agreement, India finally joined the nuclear club, but the markets were not enthused.
Continuous selling in index heavyweights by the FIIs to the tune of Rs 1,937 crore during the last week has also contributed to the gloom. Sensex lost 576 points or 4.40 per cent during the week to close at 12,526, while Nifty fell by 167 points or 4.18 per cent to close at 3,818.
What to expect this week
After the markets ignored the US' bailout plan last Friday, it is difficult to gauge the direction in which they would move in the coming days. The market is unlikely to be cheered by the fact that the unemployment rate in US during September was 6.1 per cent (unchanged from August) as it strengthens fears of a recession.
Even as the uncertainty regarding the effectiveness of the bailout lingers in the minds of investors, they would find solace from the fact that both, inflation and crude oil prices have started heading southward.
On the domestic front, Q2 corporate results will kick-off this week, which could provide vital cues about the extent of slowdown in earnings.
Stock to watch
Consolidated Construction Consortium (CCCL) is likely to attract investor's attention in the coming days after the company announced on Friday evening (October 3) that it has secured the Chennai Airport project worth Rs 1,212 crore from Airport Authority of India. The project involves the development of the Kamaraj Domestic Terminal Phase II, expansion of Anna International terminal and face lifting of existing terminals at Chennai Airport. Besides, the company has also bagged projects worth Rs 109 crore for the development of cargo complex at Chennai airport and for allied services at Tiruvananthapuram. | ||||||||||||||||
The quantum of these orders is substantial for the company, as its FY08 revenues were to the tune of Rs 1,448.1 crore. The stock has corrected nearly 20 per cent in the last one month, partially because it formed a part of Lehman Brother's portfolio. CCCL trades at a P/E multiple of 18x its trailing earnings.
