Markets at a glance

The RBI governor’s statement that capital inflows are manageable perked up investor sentiments. FIIs bought stocks worth Rs 400 crore in the first four trading sessions. However, rising food inflation curbed gains. BSE Sensex rose marginally by 17 points or 0.1 per cent to 17,119, while Nifty rose 8.4 points or 0.2 per cent to 5,117.

Mid-caps underperformed the Sensex and closed lower by 0.4 per cent, while Small-caps outperformed and closed higher by 1.5 per cent for the week. On the back of stimulus measures and good domestic demand, India’s industrial output grew by a robust 10.3 per cent in October 2009 over last year.

What to expect this week

Indian markets are expected to track global cues. The latest EPFR Global data on global fund flows suggests that emerging markets received $2.3 billion, would be improve sentiment. However, several market watchers indicate that a correction is not ruled out before another round of consolidation in the broader indices.

Volumes are also expected to be low as the holiday season kicks off in the West. The trend in advance tax payments that are to be filed before December 15, is expected to be healthy, and should reflect positively on sentiments.

Stock to watch
Parsvnath Developers
Last week's close (Rs) 121.05 
Prev. week's close (Rs) 109.95 
Week's high (Rs) 125.60 
Week's low (Rs) 107.00 
Last week's ave. daily turnover (Rs cr) 42.02 
Prev. week's ave. daily turnover (Rs cr) 8.01 
Number of up/down move 3/2

Parsvnath Developers’ stock could come into play with the company raising Rs 75 crore from a private equity fund, Sun Apollo.

The International real estate fund has bought a 50 per cent stake in Parsvnath’s premium residential project ‘Parsvnath Exotica Part II’, which is to be developed in Gurgaon. Recently, the company completed a QIP that mopped up Rs 168 crore and raised Rs 115 crore from Red Capital.

In the last six months, Parsvnath has raised Rs 350 crore through private placement and stake sales, which should help reduce its debt of about Rs 1,600 crore and provide some cash for growth. At Rs 121.45, the stock trades at 26.8 times its trailing 12-month EPS.