Markets at a glance

The fears of inflationary pressures and the consequent rise in the interest rates and outflow of FII money extended in the past week.

For the week ended June 2, BSE Sensex ended at 10,451.33 shedding 358 points and S&P CNX Nifty closed at 3091.3 losing 118 points.

Weak global markets, a fall in base metal prices and intoduction of securities transaction tax (STT) effective June 1 led to further selling by market participants. FIIs have pulled out dollar 1.8 bn in the month of May itself. However domestic mutual funds have been net investors to the tune of 7893 crore in May.

Market breadth was extremely negative over the week with 27 of the 30 Sensex stocks ending in red. ITC proved to be the biggest drag on the Sensex with the scrip losing 10.29 per cent to close at Rs 164.4 thereby shaving off 82.03 points from the index.

Larsen & Toubro (down by 7.23 per cent), Bajaj Auto (down by 6.8 per cent) and Bharati Tele Ventures (down by 5.4 per cent) were the other big contributors to the fall in Sensex.

On the upside, HDFC (up by 1.59 per cent to close at Rs 1189.9), BHEL (up by 2.62 per cent to close at Rs 1995.05) and Ranbaxy Labs (up by 0.72 per cent to Rs 427.15) were the only gainers.

All the sectoral indices ended the week in the negative territory. The biggest loser was BSE FMCG index declining by 6.53 per cent. Bata India Ltd. (down by 14.9 per cent), Dabur India Ltd. (down by 13.3 per cent), Nirma (down by 11.06 per cent) and ITC Ltd. (down by 10.3 per cent) were the major culprits for the fall in the FMCG index.

BSE PSU (down by 4.8 per cent), BSE Cap Goods (down by 4.48 per cent) and BSE Healthcare (down by 4.2 per cent) were other major losers.

The major indexes were narrowly mixed for the week. The Dow Jones industrials ended the week down 30.74 points, or 0.27 percent, closing at 11,247.87 points.

However S&P 500 index gained 18.06 points, or 0.63 percent, to close at 1,288.22 points and Nasdaq rose 9.04 points, or 0.41 percent, to end at 2,219.41 points. A steep dip in monthly job growth, lack of clarification on the outlook for interest rates and mixed signals on inflation left the investors confused.

What to expect this week

Markets are expected to react to the US job data unvieled on June 2 triggering interest rate signals and uncertainty over hike in the retail fuel prices following protests by the Left parties.

Stock to watch 

Gitanjali Gems Ltd
Last week's close (Rs)	195.57
Prev. week's close (Rs)	205.50
Week's high (Rs)	218.88
Week's low (Rs)	192.58
Last week's ave. daily turnover (Rs cr)	43.93
Prev. week's ave. daily turnover (Rs cr)	27.23
Number of up/down move	2/3

The underperformance of the stock of Gitanjali Gems Ltd since its listing in March 2006 has attracted institutional players. HSBC Financial services (Middle East ) Ltd recently bought 10 lakh shares or 2 per cent stake in the company on the counter.

The company- a major player in the branded jewellery market with brands like Gili, D'damas, Nakshatra, Asmi and Sangini- has drawn up plans for exclusive retail ventures.

It recently formed Shubalavanya Jewel Crafts Pvt Ltd- manufacturer and trader of precious metal and diamond studded jewellery-as its subsidiary by acquiring 51 per cent stake.

Stock of the week 

Dewan Housing
Last week's close (Rs)	85.15
Prev. week's close (Rs)	77.90
Week's high (Rs)	101.80
Week's low (Rs)	76.00
Last week's ave. daily turnover (Rs cr)	104.06
Prev. week's ave. daily turnover (Rs cr)	14.32
Number of up/down move	3/2

Stock of Dewan housing gained 9.5 per cent to close at Rs 85 on the reports that Adani group is executing Rs 6000 crore project to develop a 25 lakh sq ft commercial and retail hub at the Bandra Kurla Complex, Mumbai, in partnership with Housing Development and Infrastructure ltd, a subsidiary of Dewan Housing Finance Ltd. The tsock has gained 23 per cent in the last month.