Markets at a glance

TRADING DESK

Markets continued its post-Budget bull-run and the Sensex ended the week at an all-time high level of 10782.34 on Friday. However, this was followed by high volatility with buying and selling on alternate trading sessions.

For the week ended March 10, 2006, the Sensex gained 169.73 points to end at 10765.16. S&P CNX Nifty jumped by 36.55 points to settle at 3183.90. Sustained FII inflows were one of the major reasons. FIIs have poured in Rs 3115.2 crore in the first few days of this month.

Market breadth was positive over the week with 24 of the 30 stocks ending in a positive territory. The biggest push to the Sensex came from Infosys Technologies, Reliance Industries and Larsen & Toubro. Infosys Technologies climbed 3.2 per cent to Rs 2914.85, contributing 32.84 points to the Sensex.

Reliance Industries (up 2.3 per cent to Rs732.15) and Larsen & Toubro (up 4.3 per cent to Rs 2512.65) together added 41.66 points. ACC (up 11.2 per cent to Rs 759.5) and HLL (up 3.2 per cent to Rs 251.9) were other gainers. On the downside, Bharati TeleVentures (down 5.9 per cent to Rs 384.45) and Maruti Udyog (down 5.4 per cent to Rs 878.45) were the biggest losers.

The week ended with most of the sectoral indices ending in the positive territory except Consumer Durables. The biggest gainer was the BSE Capital Goods index with over 5.4 per cent gain.

Areva T&D India Ltd (up 35.3 per cent), Siemens (up 15.7 per cent ), Crompton Greaves (up 14.9 per cent), ABB Ltd (up 12.8 per cent) helped the index leap. The BSE Consumer Durables index was the only one to decline, by 0.46 per cent.

The markets finished mixed for the week mainly owing to inflation rate concerns and also because of cautious outlook on the interest rate measures adopted by the new Fed chairman. The Dow Jones industrials gained 54.75 points to end at 11,076.34.

On the other hand, the S&P 500 index fell 5.65 points to close at 1,281.58 and Nasdaq lost 40.56 points to end at 2,262.04. Oil prices edged lower at $59.96 on the news of higher US energy stockpiles and steady production levels from major producers.

What to expect this week

The deadline of March 15, 2006 for advance tax outflows is expected to impact domestic liquidity.

Further, sustained FII inflows are expected to be the maintsay of the ongoing bull-run. Mutual funds are also expected to be active, thanks to hefty collection from new equity schemes.

Stock to watch  

BIRLA CORPORATION
Last week's close (Rs)	325.55
Prev. week's close (Rs)	281.89
Week's high (Rs)	342.00
Week's low (Rs)	276.50
Last week's ave. daily turnover (Rs cr)	50.94
Prev. week's ave. daily turnover (Rs cr)	17.07
Number of up/down move	38,778.00

Stock of Birla Corporation is attracting incraesed institutional interest. Recently, HSBC MF, Mire Asset india and Cititgroup Global Markets together mopped up about 17 lakh shares or 2.2 per cent of the total outstanding shares of the counter at Rs 298. The stock closed the week with a gain of 15.6 per cent at Rs 325.6.

The M P Birla group flaghsip, Birla Corporation, has interests in cement, jute, auto trim and PVC flooring businesses. It is planning to enhance its existing cement capacity of 6 million tonne a year.

The company caters to high growth markets of the north, the east and the central India. In a bid to control power costs, it is also setting up captive thermal power plants of 27 MW each in Madhya Pradesh and Rajasthan.

Stock of the week  

GODREJ INDUSTRIES
Last week's close (Rs)	528.27
Prev. week's close (Rs)	442.25
Week's high (Rs)	553.50
Week's low (Rs)	416.33
Last week's ave. daily turnover (Rs cr)	8.46
Prev. week's ave. daily turnover (Rs cr)	2.59
Number of up/down move	38,808.00

Stock of FMCG major Godrej Industries jumped 19.43 per cent to close the week at Rs 528.25. At this price, the scrip has gained 34.07 per cent in the past one month.

The optimism about the stock stems from the company's announcement that it plans to sell its foods division to Godrej Tea. It has also announced a Rs 100 crore expansion plan for Godrej Tea, 70 per cent of which will be earmarked for expansions or acquisitions.