Markets at a glance

Postive cues from the global markets and a strong IIP boosted domestic sentiments and helped recoup losses of the previous week. IIP numbers came at 10.4 per cent, the highest in the last 22 months. The market crossed psychological levels of 17,000 and 5,000 for Sensex and Nifty, respectively.

The BSE Sensex rose 680 points or 4.1 per cent to close at 17,323, while Nifty rose 197 points or 4 per cent to 5,142.2 in the same period. Mid caps did better, the BSE Mid-Cap index jumped 4.9 per cent during the period.

What to expect this week

Following robust gains, analysts expect markets to be firm in the truncated Diwali week, as there is a holiday on Monday. Rising fund inflows from FIIs boosted by an appetite for risk will play an important role in the week. Out of the Rs 4,400 crore pumped in the month of October, around Rs 3,500 crore came in the first three days of previous week.

Further, the market direction would also depend on the global cues and how the second quarter results fare. Quarterly results so far have boosted market confidence; several foreign brokerages are likely to upgrade their earlier estimates. Some prominent companies that would be announcing Q2 results this week are L&T, Maruti, BHEL and SAIL.

 

Stock to watch
TCS
Last week's close (Rs) 598.65 
Prev. week's close (Rs) 561.73 
Week's high (Rs) 603.43 
Week's low (Rs) 564.27 
Last week's ave. daily turnover (Rs cr) 176.40 
Prev. week's ave. daily turnover (Rs cr) 312.60 
Number of up/down move 3/1

The Tata Consultancy Services (TCS) scrip could witness action after the company released its September quarter results after market hours on Friday. Net profit increased 6.8 per cent to Rs 1,624 crore on quarter-on-quarter basis (q-o-q), beating expectations.

The focus on operational efficiencies boosted overall profitability. Within a week after Infosys revised its guidance upwards, TCS results are perceived to be vital as they hint that expectations of a turnaround in the IT sector are not baseless.

The revenues also came higher growing 3.2 per cent q-o-q to Rs 7,435 crore. The stock was up 2.84 per cent after Friday’s closing price of Rs 599, and it trades at 24 times its trailing 12-Month EPS of 25.