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| Markets at a glance |
| S I Team / Mumbai Aug 24, 2009, 00:32 IST |
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The key benchmark indices were under pressure on concerns that a deficient monsoon could hurt growth numbers. Weakness in Chinese markets impacted domestic markets. Though the week started on a bearish note with major losses on Monday, a pull-back was seen during the second half of the week.
Overall, the BSE Sensex gained in 3 out of 5 trading sessions. The Sensex declined 171 points or 1.1 per cent to 15,241, while Nifty fell 51 points or 1.1 per cent to 4,521. Mid caps and small caps held out better compared to the broader indices. The BSE Mid-Cap fell 0.8 per cent, while the BSE Small-Cap rose 0.8 per cent.
What to expect this week
The Street would take solace from the news that the rain deficit has narrowed to 26 per cent for June 1 to August 19 compared to 29 per cent, a week earlier. Global markets would provide a cue to future market direction. The markets are expected to be choppy in the week that corresponds to August derivative expiry.
A recent global portfolio manager survey indicates that confidence into equity is returning with 75 per cent respondents positive about global economic prospects compared to 63 per cent in July. This should act as support on declines.
Stock to watch
Tata steel
Last week's close (Rs) 444.93 Prev. week's close (Rs) 469.85 Week's high (Rs) 463.33 Week's low (Rs) 430.55 Last week's ave. daily turnover (Rs cr) 536.02 Prev. week's ave. daily turnover (Rs cr) 713.74 Number of up/down move 3/2
Tata Steel shares could be in focus this week as the company will announce its consolidated financials for the June quarter on August 27. Standalone results for the company declared earlier show a drop in net sales and net profit of 10 per cent and 47 per cent, respectively.
Tata Steel’s international operations, especially its UK-based Corus subsidiary, have been under pressure due to weak global demand and lower steel prices. The company has been consistently working towards cutting costs, which should also reflect in the consolidated results of June 2009 quarter.
Cost cutting measures had helped it save over $1 billion in 2008-09. Analysts expect the company to report a consolidated EPS of Rs 6.80 for the June 2009 quarter. At Rs 445, the stock is trading at 7.5 times its 12-month trailing consolidated EPS of Rs 59.
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