Markets at a glance

The BSE Sensex surged 565 points or 3.4 per cent to 16,995 during the week, while Nifty rose 166.40 points or 3.4 per cent to 5,089. A positive Budget, surge of manufacturing and services activity in February and rise in exports for the third consecutive month in January 2010, aided the rally.

Budget proposals which offered to progressively cut fiscal deficit over the next three fiscal years, enhance personal tax slabs and reduce surcharge on corporate tax continued to keep sentiments high. Overall, market gained in three out of four trading sessions in the week. Both midcaps and smallcaps outperformed the broader indices, rising over 5 per cent each.

Markets this week

Indian stocks could take cues from global events in the absence of major domestic triggers as markets enter a consolidation phase after a good post-budget rally. Better than expected US job data and confidence that Greece’s debt problems can be contained are positives. The markets will keenly watch the response that the NMDC’s follow-on public offer (FPO) is able to elicit.

Going ahead though, a flurry of new and follow-on offerings over the next few months, could put pressure on liquidity. Foreign investors were net buyers to the tune of $1.2 billion in the calendar year. Their attitude will play a key role in providing direction to the markets.

 

STOCK TO WATCH
HT Media
Last week’s close (Rs) 146.90
Prev. week’s close (Rs) 138.63
Week’s high (Rs) 149.50
Week’s low (Rs) 138.43
Last week’s ave. daily turnover (Rs cr) 0.67
Prev. week’s ave. daily turnover (Rs cr) 0.55
Number of up/down move 4/0

HT Media scrip could come into play as the company announced plans on Friday to list its subsidiary. Hindustan Media Ventures. HT Media plans to raise up to Rs 300 crore from the market.

The IPO will help the company fund its growth plans. In the recent quarter, with growth picking up compared to earlier quarters the company reported a 5 per cent year-on-year increase in revenues on the back of Hindi print business delivering higher advertising revenues.

Lower raw material costs boosted net profits to Rs 35.8 crore vis-a-vis a loss of Rs 12.8 crore in the year ago quarter. However, competition in the English segment in metro markets remains stiff. At Rs 146.25, the stock trades at 25.8 times its 12 month trailing EPS of Rs 5.7.