After sustaining losses in the first four days of the week, Sensex bounced back strongly on Friday closing the week with a return of -1.46 per cent. Both the BSE Mid-cap (a fall of 0.52 per cent) and Small-cap index (rose 0.43 per cent) outperformed the Sensex. GDP growth at 6.1 per cent in the June quarter 2009, improving monsoons and a proposal to increase natural gas prices did not excite investors much due to volatile global equity markets and profit booking at higher levels.
Though the markets recovered in the last few trading sessions on Friday, analysts are of the view that this week the cues from the global markets would be crucial. They expect the markets to remain range bound in the absence of any major positive trigger and institutional investments. Also, action in both the puts and the calls of 4,700 strike shows that the Nifty may hover around the 4,750 mark.
Stock to watch
Stock to watch UTTAM GALVA
Last week's close (Rs) 113.82 Prev. week's close (Rs) 99.00 Week's high (Rs) 113.83 Week's low (Rs) 96.23 Last week's ave. daily turnover (Rs cr) 27.65 Prev. week's ave. daily turnover (Rs cr) 10.03 Number of up/down move 3/2
Despite a 10 per cent spike in share prices to Rs 113.7 on Friday, Uttam Galva could see action on Monday on the news of new co-promoter. According to an announcement on Friday after the market hours, ArcelorMittal Netherlands BV, the world's largest steel maker, would be the co-promoter of the company and would launch an open offer for 29.4 per cent of Uttam Galva at offer price of Rs 120 per share.
The stock witnessed strong trading volumes of 39.25 lakh shares including 96.6 per cent delivery volumes at BSE on Friday. Uttam Galva is manufacturer of value added steel, exporting to 143 countries supplying its steel to auto, construction and white goods sectors. Uttam Galva reported a EPS of Rs 3.03 per share in quarter ended June 2009; on a annualised earnings the stock is currently trading at 9 times.
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