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| Markets at a glance |
| S I Team / Mumbai Nov 02, 2009, 00:48 IST |
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Analysts believe that the market might bounce back from lower levels. However, the weakness may continue this week as well. Investors need to keep an eye on FII investments this week given the heavy selling last week. There is a possibility of more selling on counts of profit booking and doubts over the recovery in the US economy.
Global cues are also important as the Q2 season comes to an end and there are no major domestic triggers left. Sectors like banking, real estate and telecom might continue to remain in the limelight after coming under selling pressure last week.
What to expect this week
Last week, the markets went through a correction phase during each of the five trading sessions and closed in the negative territory. Over the week, the BSE Sensex shed 914.53 points or 5.44 per cent to close at 15,896.28. The correction was higher in the case of the BSE Mid Cap index which lost 7.63 per cent and the Small Cap index which fell 8 per cent.
The concerns over the expected increase in interest rates, tightening liquidity and higher inflation triggered selling especially after the monetary policy on Tuesday. FIIs were net buyers during the first three trading sessions but sold heavily to the tune of Rs 1,595 crore on Thursday.
Stock to watch
HUL
Last week's close (Rs) 283.23
Prev. week's close (Rs) 280.57
Week's high (Rs) 287.64
Week's low (Rs) 272.55
Last week's ave. daily turnover (Rs cr) 83.67
Prev. week's ave. daily turnover (Rs cr) 62.55
Number of up/down move 2/3
The Hindustan Unilever stock could see action this week as the market sizes up the FMCG giant's September quarter results which were announced on Saturday. The company reported a 21.6 per cent decline in its net profit on a 5 per cent growth in net sales.
Adjusting for exceptional items the growth in net profit stood at 29 per cent at Rs 563.71 crore, which was higher compared to average analysts estimates of about Rs 503 crore.
Profits grew as margins improved by 166 basis points to 15.27 per cent due to lower raw material cost. Although the bottom line has grown, analysts are worried as volumes have grown by just 1 per cent, which is lower than industry growth.
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