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| Markets at a glance |
| S I Team / Mumbai Sep 01, 2008, 20:44 IST |
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In a closely fought battle between the bears and the bulls last week, the bulls had the last laugh, as inflation fell for the first time in seven months. The benchmark BSE Sensex closed higher by 163 points or 1.1 per cent at 14,565, while the NSE Nifty rose 32 points or 0.8 per cent at 4,360 in the week.
Sensex gained in three out of five trading sessions. While there was little to cheer about India's GDP growth rate of 7.9 per cent in Q1 FY09, a 3.3 per cent second quarter GDP growth in the US came as a positive surprise. Also, at about 75 per cent, we had among the best rollovers (August Nifty futures) in recent times.
In August, FIIs have sold shares worth Rs 1,211.7 crore (till August 28), while mutual funds have sold shares to the tune of Rs Rs 700.4 crore (till August 27).
What to expect this week
The softening of inflation have raised the hopes for a pause in monetary tightening by the central bank. This could result in a relief-rally in the next few days, provided crude oil prices don't spoil the party for the bulls.
Oil climbed back up to $117 in Friday's trade as threat from Tropical Storm Gustav continued to loom. Market will take cues from another NSG meeting on the nuclear deal in Vienna that begins on September 4.
Stock to watch
| NMDC |
| Last week's close (Rs) |
303.52 |
| Prev. week's close (Rs) |
326.33 |
| Week's high (Rs) |
339.50 |
| Week's low (Rs) |
288.15 |
| Last week's ave. daily turnover (Rs cr) |
2.84 |
| Prev. week's ave. daily turnover (Rs cr) |
6.23 |
| Number of up/down move |
1/4 |
There could be some action in the National Mineral Development Corporation (NMDC) counter in the coming days, thanks to the announcement by the company that it will set-up an integrated steel plant at Nagarnar. The announcement was made by the company on August 29 (Friday) after market hours.
Reports suggest that the company has earmarked over Rs 20,000 crore to set up backward and forward integration plants. The capex plans include a greenfield steel project in Chhattisgarh worth Rs 14,000 crore and a pig iron plant costing Rs 1,400 crore. This expansion will be funded from the company's internal accruals.
NMDC is expected to clock revenues of about Rs 36,000 crore by FY15 from Rs 6,381 crore in this fiscal. Although these projects are long term in nature, this development could rub off positively on the share price in the near term.
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