The Sensex fell by 491.89 points or 2.87 per cent before closing at 16,642.66. A positive guidance from Infosys, a bonus by Reliance Industries and good cues from the global markets, did not help the markets much as telecom stocks dragged the indices on concerns over competition and lower tariffs. The BSE Mid Cap Index corrected marginally by 0.01 per cent, however, the BSE Small Cap Index fell higher by 2.84 per cent during the last week. Till October 7, the FIIs were net buyers of stocks worth Rs 1,939.10 crore.
Markets this week
September quarter results will dictate the market trend this week. Any disappointment could lead to correction in the market considering that the markets have run up despite Friday's correction. Among majors, HDFC, HDFC Bank, TCS and Bajaj Auto will announce their quarterly results this week.
Among sectors, telecom companies whose share prices corrected last week could remain in the limelight as well. Others sectors such as auto, FMCG could see higher activity ahead of the festive season. Besides, this week investors would watch out for industrial production numbers for August 2009, to be announced today.
| Stock to watch HDFC Last week’s close (Rs) 2,693.45 Prev. week’s close (Rs) 2,700.83 Week’s high (Rs) 2,760.65 Week’s low (Rs) 2,641.38 Last week’s ave. daily turnover (Rs cr) 269.04 Prev. week’s ave. daily turnover (Rs cr) 258.39 Number of up/down move 2/3 The stock of the country's largest housing mortgage financier could attract attention ahead of its September quarter results on Monday. Loan approvals are expected to be robust as demand from small and medium home loans is picking up. |
However, the demand for commercial real estate is still subdued. Analysts expect an overall loan growth of 13 per cent y-o-y and expect net interest income to grow at 13-15 per cent. Despite lending rate cuts, HDFC’s spread could improve marginally due to significant reduction in wholesale borrowing costs.
Net profits are estimated to increase by 17-19 per cent during the quarter. At Rs 2,693, the stock trades at six times its FY09 book value of Rs 462.
