Markets at a glance

Markets closed lower with the Sensex losing 3 per cent to close below the 17,000 mark at 16,810.80 during the last week. FIIs were net buyers to the tune of Rs 1,083 crore for the week ending October 22. However, selling over the last two trading sessions by FIIs in frontline stocks, disappointing global cues and an uptick in domestic inflation were prime reasons for the correction.

Smaller stocks were relatively insulated—the BSE Midcap and Smallcap indices were down by less than 1.5 per cent. On Friday, SEBI allowed stock exchanges to increase their trading hours.

Markets this week

The markets are expected to remain volatile due to derivatives expiry for October contracts. The gas dispute between the Ambani brothers could continue to influence the markets. Also, the trend in F&O positions will be among the key things to watch out this week.

Till Friday last week, shorts were seen building up in the November series. Amongst other developments is the quarterly review of the monetary policy by RBI on October 27. The banks stocks are expected to remain in the limelight after last week’s rating downgrades by Moody's. Among major company results that the markets will be watching during the week are Ranbaxy, Tata Motors, Tata Steel, HUL, Wipro and ACC.

 

Stock to watch
TATA MOTORS
Last week’s close (Rs) 529.35 Prev. week’s close (Rs) 578.90 Week’s high (Rs) 591.35 Week’s low (Rs) 525.40 Last week’s ave. daily turnover (Rs cr) 265.26 Prev. week’s ave. daily turnover (Rs cr) 306.57 Number of up/down move 3/1

Tata Motors will announce its standalone September 2009 quarter results today. The effects of the revival in auto volumes is expected to reflect in its performance. So far, during the quarter ended September 2009, the company has reported a 12.3 per cent growth in overall volumes on a year-on-year basis.

On a sequential basis volumes are up 22.1 per cent. Analysts expect the company to report a growth of 10-12 per cent in revenues led by higher volumes, while the net profit is expected to jump by over 65 per cent mainly due to improvement in margins and higher volumes.

Operating profit margins are seen rising by about 450 basis points to 12.6 per cent led by lower raw material costs.