Markets at a glance

Assurances from governments that stimulus packages around the world would continue and China's strong industrial production numbers were welcomed by the markets. Indian government's thrust on disinvestment also lifted market sentiments as proceeds may be used to reduce fiscal deficit that is expected at 6.8 per cent of GDP for this fiscal.

The Sensex rose 691 points or 4.3 per cent to 16,849 during the week, while Nifty rose 203 points or 4.2 per cent to 4,999. Mid caps and small caps were underperformers. The BSE Mid-Cap index rose 2.6 per cent and BSE Small-cap index was up 3.3 per cent. FIIs made net purchases of Rs 2,200 crore in the first four days of the week.

Markets this week

Domestic bourses are likely to take a cue from global markets with no major domestic triggers in sight. US retail and industrial production numbers could influence the markets this week. Nevertheless, emerging market stocks and commodities have stood steady until now as investors are borrowing dollars and buying risky assets.

However, market participants are expected to remain cautious of accelerating inflation which tends to put upward pressure on interest rates and undermine equities. Analysts believe that markets' upward move could continue as sentiment remains positive.

 

Stock to watch
ABAN OFFSHORE
Last week's close (Rs) 1,235.53 
Prev. week's close (Rs) 1,280.15 
Week's high (Rs) 1,317.50 
Week's low (Rs) 1,204.00 
Last week's ave. daily turnover (Rs cr) 259.59 
Prev. week's ave. daily turnover (Rs cr) 474.35 
Number of up/down move 3/2

Shares of Aban Offshore could come into play as the company opens bids for its Rs 1,000 crore QIP issue. The company board announced that it will take bids starting November 13 at floor price of Rs 1,224 per equity share. The company has around Rs 16,000 crore debt on its books which pushed up the net debt to equity to above 10 times.

Most of the debt has been restructured with principal moratorium of two years. However, the company has to make a payment of $410 million by December this year and this is the reason why it is raising money through a QIP. At Rs Rs 1,235, the stock is trading at 17.4 times its trailing 12-month EPS of Rs 71.2.