What to expect this week

TRADING DESK

The outlook for the markets remains optimistic, though some have not ruled out chances of a further correction. An encouraging monsoon forecast is expected to provide a boost to the markets in the days to come.

Next week's action is likely to be dominated by June-quarter corporate results, which are expected to provide the next trigger. IT bellwether Infosys kick-starts the Q1 results season on Tuesday (July 12).

Other big companies scheduled to announce their results are cement major ACC and private sector bank HDFC Bank apart from housing finance major HDFC.

Markets at a glance

The markets witnessed volatile action last week amidst alternate bouts of buying and selling. In the end Sensex gains were minimal, with the index closing at 7212.08, just 1.31 points higher than its previous weekend close. The markets had started off on a strong note on the back of expectations of robust Q1 results.

However, two terrorist attacks, one in Ayodhya and the other in London, apart from surging oil prices, took their toll during the week. A good monsoon forecast proved a silver lining in between. However, the markets shrugged off negative news to close on a high.

Market breadth was even for the week. Of the 30 stocks that constitute the Sensex, 17 ended up in positive territory, while the rest ended up in the red. Losses in two stocks with the highest weightage in the index, Infosys and Reliance, capped the index gains to a large extent.

HDFC provided the maximum points to the index. The stock gained 4.97 per cent to close at Rs 913.40. This translated to a 10.12-point addition to the index. HDFC Bank (up 5.20 per cent at Rs 650.10) and Tata Steel (up 4.99 per cent at Rs 361.10) were the other big index contributors.

Gains in these two stocks added 15.75 points to the index. On the other hand, Reliance Industries proved to be the biggest drag. The stock lost 2.98 per cent last week to close at Rs 620.60, which shaved 15.25 points from the index.

Gains in the BSE Consumer Durable Index stood out last week even as other major sectoral indices passed muster. The index gained 10.58 per cent last week, as Titan Industries, the stock with the highest weightage in the index, posted a 16.54 per cent rise to Rs 448.15.

Other top stocks like Videocon International and Blue Star also managed to record significant gains. The BSE Metal Index was the next big gainer, advancing 4.73 per cent.

The gains in the index were mainly due to upsides in Tata Steel and Hindalco. The biggest loser was the IT sector, as losses in key counters such as Infosys, Satyam, TCS and Wipro led to declines in the BSE IT Index.

Key US indices ended on a positive note after a volatile week. The Dow Jones Industrials ended the week up 145.70, finishing at 10,449.14, while the tech-laden Nasdaq rose 55.51 during the week to 2,112.88. Encouraging reports on creation of jobs and easing oil prices led to bullishness.

The strength in European markets, the day after the London bomb blasts, helped improve the sentiment. Worries over oil prices, which went over the $60 per barrel mark earlier in the week, led to downsides in the markets.

Stock of the week

Crest Animation
Last week's close (Rs) 176.28
Prev. week's close (Rs) 130.95
Week's high (Rs) 179.80
Week's low (Rs) 126.25
Last week's ave. daily turnover (Rs cr) 9.65
Prev. week's ave. daily turnover (Rs cr) 4.02
Futures close NT
Number of up/down move 3/2

The stock zoomed 34.62 per cent last week to close at Rs 176.28. Volumes also surged. The scrip has more than doubled in the past month on rumours of a stake sale in the company. However, the company later denied the rumours.

Crest Animation's US subsidiary, RichCrest Animation, recently signed a pact with Mainframe Entertainment (ME) and Lions Gate Family Entertainment (LGFE) to create Arthur's Missing Pal, a feature film. It also acquired international distribution rights for a animated direct-to-video film based on the popular 'Arthur' children's book series.

Crest Animations provides post-production services like film-to-tape transfer, electronic video editing, computer generated graphics and audio mixing.