Markets at a glance

The decisive verdict for the Congress-led UPA saw the bulls come out in force and provide the momentum to last week’s rally. On May 18, for the first time in its history, the markets hit upper circuits twice and trading was halted for the day.

The BSE Sensex spurted 1,714 points or 14 per cent in the week ended May 22. Though markets ended with gains, profit booking was also seen. Compared to broader indices, the rally in the BSE Small-Cap and BSE Mid-Cap was larger with gains of 29 per cent and 25 per cent, respectively.

Markets this week

Post the allocation of portfolios to ministers on May 23, the markets will be looking forward to policy announcements for further direction. However, analysts say that the near-term upsides are capped as these expectations have been factored in.

Ahead of the May expiry, volatility will be high in the derivatives market. FIIs are playing a crucial role in the current rally with purchases of about Rs 15,000 crore in May and their extent of participation could influence the market movement. 

STOCK TO WATCH 

TATA MOTORS
Last week’s close (Rs)	345.73
Prev. week’s close (Rs)	265.18
Week’s high (Rs)	377.45
Week’s low (Rs)	273.55
Last week’s avg. daily turnover (Rs cr)	267.28
Prev. week’s avg. daily turnover (Rs cr)	103.52
Number of up/down move	3/2

Reports that Tata Motors will be raising around $1 billion through the ECB route to fulfil its repayment commitments and the March quarter results will keep the scrip in play during the week.

The ECB programme is expected to be finalised shortly. Last week, the company had raised over Rs 4,000 crore from a debenture issue.

For Q4, analysts estimate sales growth and net profits to dip 26 per cent and 96 per cent, respectively. Earnings are likely to be dented by forex losses. However, any surprises on the results front would be keenly watched. At Rs 345, the stock is trading at 14 times its trailing 12-month EPS of Rs 24.15.