Markets at a glance

TRADING DESK

Markets witnessed a big correction last week on the back of sustained selling by FIIs. Though better than expected results by IT bigwig Infosys provided cheer, disappointing results later in the week "� especially from ACC "� dampened sentiments at the bourses.

The Sensex lost 289.93 points last week to close at 8201.73, its lowest level in the past one month. Markets were weighed down by fears of rising inflation and a hike in US rates. FIIs have already sold shares worth more than Rs 1000 crore in the first two weeks of October.

With the Sensex losing nearly 290 points last week, most of the constituent stocks ended up in the red. Pharma major Ranbaxy proved to be the biggest drag on the index. The stock declined 15.72 per cent to close the week at Rs 442.95, thus taking off 32.28 points from the overall index.

Reliance Industries (down 3.21 per cent at Rs 763.60), ICICI Bank (down 4.47 per cent at Rs 507.20) and ONGC (down 5.19 per cent at Rs 992.25) were the other big losers of the week. The losses in these counters took away 78.59 points from the index.

However, the downsides were capped to an extent by the gains in the stock with the highest weightage in the index, Infosys.

In line with the general bearish trends, all sectoral indices recorded losses last week. BSE Metal index (down 6.34 per cent) was the biggest loser last week, followed by BSE Health Care index (down 5.36 per cent).

While the losses in the metal index came on the back of declines in leading sector stocks such as Hindalco and Tata Steel, downsides at the Ranbaxy counter proved to be the major drag on the health care index. BSE IT index (down 0.34 per cent) suffered the least, thanks to the upsides at the Infosys counter.

US markets ended the week with losses, though advances on Friday helped cushion the fall. Mild inflation data and improving retail sales and strong quarterly earnings at General Electric Co. improved sentiments after a spate of profit warnings earlier in the week renewed concerns that rising oil prices would whittle down corporate earnings.

The Dow Jones industrials ended the week down 4.97 points at 10287.34, while the Nasdaq dropped 25.52 points during the week to close at 2064.83.

The Q2 result season was expected to provide the next round of ammunition to the bulls. Evidently, things haven't quite worked out that way. The markets were in for a major correction last week with the Sensex tanking by nearly 290 points.

Suddenly, there are fears about high US interest rates luring frangipani to those shores. They are reported to have sold more than Rs 1000 crore in the first few days of the current month. Sign of things to come?

The Singapore-based Pricey Fund, who has been an active investor in India, has decided to take an exposure to Igarashi Motors. The fund is said to have bought some six lakh shares at Rs 205 levels.

After a steady rise from Rs 95 levels a year back to Rs 230 levels by the end of August this year, the stock has been on the decline. Pricey Fund obviously thinks it is a good opportunity to get into the counter.

The CLL products stock continues to soar. Not that anybody minds, as evidenced by Metro Fund's recent buying at the counter. The fund is said to have bought the stock at Rs 430 levels. Mumbai-based PL Brokerage had recently endorsed the stock with a price target of Rs 583 by September, 2006.

According to the brokerage, CCL Products India, a well-known player in the instant coffee industry is now seeing strong growth in demand for its products as global coffee consumption is on the rise, particularly in Europe and the CIS countries.

The Mauritius-based Feeder Fund has taken a liking to IL&FS Investsmart. The fund has bought more than 2.5 lakh shares at Rs 243 levels.

What to expect this week

Second quarter results and FII trading patterns are likely to keep the markets on tenterhooks. Several companies including HDFC Bank, Bharat Forge, Wipro, Bajaj Auto, Gujarat Ambuja Cements and Ranbaxy are scheduled to announce their results this week.

Another important indicator will be FII activity. They have been net sellers in the past few sessions and there are worries that a further hike in US rates could accentuate the outflow of foreign money.

Stock of the week

Ranbaxy Laboratories Last week's close (Rs) 443.13 Prev. week's close (Rs) 524.29 Week's high (Rs) 532.95 Week's low (Rs) 417.58 Last week's ave. daily turnover (Rs cr) 234.26 Prev. week's ave. daily turnover (Rs cr) 77.95 Futures close October-2005 (Rs) 443.65 Futures close November-2005 (Rs) 447.10 Futures close December-2005 (Rs) 451.50 Number of up/down move 0/4

Pharma major Ranbaxy Laboratories was the biggest loser among Nifty stocks last week. The downsides at the counter came after a ruling by the UK High Court on Wednesday, dismissing Ranbaxy's legal challenge to the patent protecting Pfizer's best-selling cholesterol drug Lipitor.