Broader indices have notched up gains for the third consecutive weekboosted by some encouraging news from the US. There were gains inthree out of the four trading sessions in a curtailed week on account of Ram Navami. BSE Sensex surged 300 points or 2.98 per cent to10,348.83 and Nifty gained 102 points or 3.3 per cent to 3,211.
Midcap and small cap counters were outperformers with BSE Mid Cap and BSE Small Cap indices spurting 6.51 per cent and 6.13 per cent respectively. Negative news of a contraction of manufacturing activity and fall in exports for a fifth straight month did not dampen market sentiments. Inflation rose 0.31 per cent for the week ended March 21.
What to expect this week
G20’s proposal of a $1.1 trillion stimulus package to put the global economy on track will be viewed positively by the markets. FIIs were net sellers to the tune of Rs 761 crore in the first three days of the week and their participation will be keenly watched. After ECB cut interest rates to 1.25 per cent, there is an expectation that RBI might also cut rates.
More than the international central bank actions, domestic macro factors like inflation, which has seen a sharp fall will raise expectation of a further cut. However, muted expectations of Q4 results and year end March 2009 earnings and political uncertainty surrounding the general elections slated to be held in mid-April 2008 to mid-May 2009, would cap major upside in stocks.
| STOCK TO WATCH AREVA T&d INDIA Last week’s close (Rs) 214.07 Prev. week’s close (Rs) 184.68 Week’s high (Rs) 219.95 Week’s low (Rs) 179.60 Last week’s ave. daily turnover (Rs cr) 10.33 Prev. week’s ave. daily turnover (Rs cr) 1.74 Number of up/down move 4/0 Expansion of Areva T&D’s manufacturing capacity could boost its stock price this week. The company has infused around Rs 950 crore for its greenfield manufacturing facilities in Vadodara (Gujarat), Paddapai (Tamil Nadu) and Hosur (Karnataka). These initiatives are expected to double sales from around Rs 2,650 crore currently in the next four years. Besides the domestic market, exports as a proportion of sales are set to grow from 14 per cent to 25 per cent in the next few years. |
Asarco's mines currently have estimated reserves of 5 million tonnes of contained copper. In light of this agreement, Sterlite's stock could be in the limelight for two reasons. Firstly, the acquisition adds to the strengths of Sterlite’s integrated metal portfolio. Secondly, the new purchase price of $1.7 billion is far lower than the earlier price of $2.6 billion.
