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| Markets at a glance | |
| SI Team / Mumbai September 28, 2009, 0:36 IST | |
The market remained volatile ahead of the expiry week. The broader indices opened positive at the start of the week but gave up the gains by the end of the week.
The Sensex closed at 16,693, marginally lower compared to the previous week. However, mid-caps and small-caps performed better delivering returns of 1 per cent each. FIIs were buyers during the week with net purchases of Rs 4,600 crore, continuing the trend of investments since the start of April.
Markets this week
Domestic indices are expected to take cues from the global markets. The G20 leaders have indicated that stimulus to global economies would continue.
Analysts say that the underlying sentiment is positive but suggest that the next leg of market momentum would depend on corporate results that would be unveiled from the start of the next month. Better than expected advance tax and excise duty collections are other positives which along with FII investments could decide the direction of the markets.
STOCK TO WATCH
Shree Renuka Sugar
| SHREE RENUKA SUGAR |
| Last week's close (Rs) |
195.60 |
| Prev. week's close (Rs) |
200.73 |
| Week's high (Rs) |
202.60 |
| Week's low (Rs) |
189.38 |
| Last week's ave. daily turnover (Rs cr) |
53.76 |
| Prev. week's ave. daily turnover (Rs cr) |
90.44 |
| Number of up/down move |
2/2 |
Shree Renuka Sugar has acquired 5 per cent equity stake in National Commodity & Derivatives Exchange (NCDEX) from Intercontinental Exchange Holdings and Goldman Sachs Investments (Mauritius) for Rs 36.5 crore.
Company officials say that the purchase of stake at this juncture is because foreign investors were forced to trim their stake to 5 per cent due to government restrictions.
The deal is considered to be attractive as valuations have come down from around Rs 1,800 crore when FIIs bought the stake to Rs 730 crore now. Shree Renuka Sugar earns a large amount of its revenue from the trading of sugar with sugar refining capacities of 4,000 tonne per day.
Analysts believe that the company’s investment in the exchange could yield good returns in the long term as commodity exchanges are at a nascent stage and volumes are yet to take off.
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