Market sentiment was largely bearish through the week, on the back of weak global cues and renewed selling by foreign institutional investors (FIIs). The market failed to sustain the rally witnessed at the start of the week, caused by China's massive $586 billion economic stimulus plan.
The US Treasury’s plan to forgo buying toxic investments got the better of the bulls. Fall in India's exports, the first time in five years, added fuel to fire. The sharp decline in crude oil prices ($58-levels) and inflation numbers (8.98 per cent) failed to lift investor’s spirits.
Market participants also shrugged off the improved IIP data for September (up 4.8 per cent), on worries that the IIP for October may throw up negative surprises. The BSE Sensex fell by 578 points or 5.81 per cent to end at 9,385 during the truncated week. The NSE Nifty on the other hand, dipped by 162 points or 5.47 per cent to close at 2810 in the week.
What to expect this week
Key benchmark indices may continue to be guided by overseas cues, as sentiments remain fragile due to sustained negative news flow from different corners. While the two-day G-20 summit held last week holds promise in dealing with the world's biggest financial crisis, analysts don’t expect any substantial positive impact in the near term.
Europe officially fell into recession last Friday and this is likely to weigh on global markets. On the domestic front, inflation in single digits has raised hopes of a further rate-cut by RBI. Polling for assembly elections in six states has kicked off, starting with Chhattisgarh.
Marketmen believe that the outcome of these elections will provide vital cues about the current popularity of the country's main political parties viz. the Congress and the BJP, ahead of parliamentary elections due early next year.
| Stock to watch EVEREST KANTO CYLINDER Last week's close (Rs) 170.97 Prev. week's close (Rs) 182.20 Week's high (Rs) 202.50 Week's low (Rs) 169.08 Last week's ave. daily turnover (Rs cr) 1.44 Prev. week's ave. daily turnover (Rs cr) 7.98 Number of up/down move 2/1 Everest Kanto Cylinder could witness action on the bourses, as its board will meet on November 17th to consider share buy-back. The meeting assumes importance as further details regarding the buy-back offer will emerge, which will provide direction to the stock in the near-term. |
The board will also consider an investment of up to Rs 10 crore in a proposed 50:50 joint venture with Tomasetto Achilles group, Argentina for carrying on the business of manufacturing CNG kits and related activities.
The company's net sales have increased by 73 per cent y-o-y in Q2FY09 to Rs 221 crore. Its net profit grew by 52.1 per cent y-o-y to Rs 43.2 crore in the same period. The stock is trading at 17x its trailing EPS of about Rs 10.
