Markets at a glance

The markets traded in a narrow range this week in spite of stellar numbers from Infosys. The Sensex rose 14 points or 0.08 per cent to 17,554, while Nifty increased 7 points or 0.14 per cent to 5,252 during the week. Midcaps and small caps performed better; Midcap index rose 1.5 per cent and Smallcap index was up 3.1 per cent during the week. Industrial output grew at 11.7 per cent, fastest in the last two years in November 2009; expectations indicate that GDP numbers could grow to 7.75 per cent for FY10. However, inflation at 7.3 per cent in December as compared to 4.8 per cent was the concern area for investors.

Markets this week

Expectations of strong December quarter results and global liquidity flows may help stock prices. This week, several heavyweights such as Tata Power, Wipro, HDFC, ICICI Bank, L&T, RIL and ONGC will be announcing their results. Emerging markets continued to receive positive flows with the Asia ex-Japan equity funds receiving $481 million during the week, says EPFR Global. While foreign investors pumped around Rs 4,400 crore last week, taking their total investments to Rs 8,200 crore in January, their attitude will influence the markets’ direction during the week. The market will keep an eye out for any moves from RBI to squeeze liquidity to control inflation.

 

Stock to watch
RELIANCE IND
Last week’s close (Rs) 1,109.97 Prev. week’s close (Rs) 1,102.55 Week’s high (Rs) 1,167.20 Week’s low (Rs) 1,058.00 Last week’s ave. daily turnover (Rs cr) 1,545.04 Prev. week’s ave. daily turnover (Rs cr) 1,183.95 Number of up/down move 3/2

Reliance Industries, India’s largest private sector company, will annouce its December quarter results on January 22. Among the key metrics to watch out for will be sales growth which is expected to be in excess of 60 per cent y-o-y led by the start of gas production at KG D-6 and the Reliance Petroleum refinery.

Net profit growth would be another key number which analysts estimate would be a sedate 15 per cent. The not-so-impressive profit growth forecast is the result of lower gross refining margins of around $5-5.5 per barrel, compared to $10 per barrel a year ago. At Rs 1,109, the stock trades at 24 times at its trailing 12-month EPS.