Markets at a glance

Markets tanked last week following weak trends in the global market as US market slumped on recession fears. Sensex tumbled 1,813.75 points to 19,013.70 and Nifty declined 494.8 points to 5,705.30. FIIs sold to the tune of $1.68 billion or Rs 6,600 crore in the last three trading sessions.

Meanwhile, the biggest ever IPO, Reliance Power went on smoothly with an oversubscription of 72 times. Results announced by biggies like Ranbaxy, TCS and Reliance have been in line with expectations

What to expect this week

Markets would continue to follow the trend in the global markets especially the US, which was in the negative zone last week following recession fears. However, it could find some support from the expectation of interest rate cuts by the US Federal Reserve in its meeting later this month.There are some major results this week from companies like ONGC, Satyam Computer, Grasim, HDFC Bank, Dr. Reddy's Laboratories and BHEL.
 

STOCK TO WATCH
Bombay Dyeing
Last week's close (Rs)	855.35
Last week's close (Rs)	941.27
Prev. week's close (Rs)	939.18
Week's high (Rs)	1,019.45
Week's low (Rs)	858.18
Last week's ave. daily turnover (Rs cr)	101.98
Prev. week's ave. daily turnover (Rs cr)	57.57
Number of up/down move	2/3

Bombay Dyeing shot up by 25 per cent since the beginning of January 2008 as against Sensex's decline of 6.4 per cent. The company had recently announced that it will partially commence production at textile unit at Ranjangaon, which will manufacture polyester staple fibre (PSF). The company also said that it plans to set up a commercial complex at its Worli plant that may house shopping centres and malls.

Bombay Dyeing, a part of the Wadia group, operates in the three main segments of textiles, polyester (DMT) and real-estate. The company is expected to announce its December 2007 results on January 29. In the half year ended September 2007, the company's net sales and net profit rose by 19 per cent and 64 per cent year-on-year to Rs 294 crore and Rs 42 crore respectively. However, the stock trades at an expensive 63 times its trailing 12 month earnings.