Markets at a glance

Indian indices sank into the red as the news of Dubai World's debt problems hit the world markets on Thursday. Both the BSE Sensex and the S&P CNX Nifty fell below their pschologically important levels of 17,000 and 5,000 respectively.

While the 30-share index lost 389.84 points or 2.29 per cent to end the week at 16,632.01, the Nifty fell 110.70 points or 2.19 per cent to 4,941.75. The markets hit a one month high on Wednesday with the Sensex moving to 17,180 on the back of buying by foreign funds and gains by Reliance Industries which announced that it has bid for bankrupt chemicals company, LyondellBasell.

What to expect this week

The market may extend recent losses as Dubai's debt problems could trigger another round of risk aversion. Any breakthrough in talks on repayment terms of Dubai World’s debt would be positive for the market. Sectors like real estate would be in focus on the bourses this week. On the domestic front, government would announce September quarter GDP data on Monday.

The economy grew at 6.1 per cent in the June 2009 quarter. Another data to watch out for is the Purchasing Managers' Index for the month of November 2009. Auto, cement and steel stocks will be in focus as they announce November 2009 sales figures.

Stock to watch
Tata Motors
Last week's close (Rs) 629.38 
Prev. week's close (Rs) 642.15 
Week's high (Rs) 663.25 
Week's low (Rs) 610.50 
Last week's ave. daily turnover (Rs cr) 293.97 
Prev. week's ave. daily turnover (Rs cr) 268.33 
Number of up/down move 2/3

The Tata Motors stock could come into play after the company reported profits at the consolidated level for the September quarter. The company reported a net profit of Rs 21.8 crore, compared to a net loss of Rs 942 crore, a year earlier.

The higher profits are attributed to cost-cutting initiatives at JLR, higher sales of premium models as well as sale of shares. However, sales for the quarter fell 8.5 percent y-o-y to Rs 20,890 crore.

JLR sold 44,300 vehicles in the September quarter, a sequential increase of over 8,400 units. The company observed a strong rebound in the UK and a pick-up of sales in Russia and China, its fastest growing markets. The company is looking at raising funds to reduce its debt.