Markets at a glance

Worries of rising food prices and a hike in interest rates weighed on the market sentiment. During the week, the BSE Sensex fell 400 points or 2.3 per cent to 16,720, while Nifty fell 130 points or 2.5 per cent to 4,988. However, mid-cap and small-cap stocks performed better, BSE Mid-Cap index fell by 1.6 per cent and Small-cap index declined by 1.04 per cent during the week.

FIIs were net buyers with $105 million in the first four days of the week. The spotlight also shifted to war between the BSE and NSE for implementing extended trade hours. However, the new trade timings would now be applicable only from January 4, 2010.

Markets this week

Markets might witness lower volumes as the year-end holiday season begins. However, expectations of healthy third quarter results could cap the downside on the indices. Announcement of advance tax payments by India Inc would provide further support. Advance tax revenue from major companies rose 36 per cent year-on-year to Rs 10,700 crore in the third quarter of 2009-10.

Analysts also suggest that the surge in advance tax was partly due to a low base effect. If RBI, contrary to expectations, continues the soft monetary policy, it would be positive for the markets.

 

Stock to watch
ONGC
Last week's close (Rs) 1,185.38 Prev. week's close (Rs) 1,189.75 Week's high (Rs) 1,217.00 Week's low (Rs) 1,180.05 Last week's ave. daily turnover (Rs cr) 65.18 Prev. week's ave. daily turnover (Rs cr) 86.72 Number of up/down move 2/3

The ONGC scrip would come into play as the company announced an interim dividend of Rs 18 per share or 1.5 per cent of its current share price. Besides the dividend news, ONGC also announced two new gas discoveries last weekend. The first gas find is of a well in the Kutch offshore (GK-28-1) capable of gushing gas at 1.2 lakh cubic meter per day.

The second find is in the Kammapalem-1 well in the KG-PG basin. This KG on-land block flowed gas with condensate at the rate of 1.01 lakh cubic metres per day besides another 2.4 cubic metres a day. At Rs 1,185.5, the stock trades at 13.5 times its 2008-09 consolidated EPS of Rs 88.6.