Markets at a glance

Markets continued their incessant upward journey for the fourth consecutive week led by ebbing of crude oil prices and firm Asian markets.

Sensex gained 273 points or 2.4 per cent to close at 11,465.72 and Nifty moved up by 82.4 points or 2.5 per cent to end at 3,356.75 on August 18.

FIIs and mutual funds were net buyers to the tune of Rs 1,771.40 crore and Rs 35.69 crore respectively for the first four trading sessions. They cumulatively invested Rs 3,210.76 crore till date in August.

Market breadth was positive with 27 of the 30 Sensex stocks ending in positive territory. The biggest push to Sensex came from Reliance Industries, with the stock gaining 4.4 per cent to close at Rs 1,055.5 thereby contributing 53.7 points to the index.

HLL (up 6.7 per cent), Tata Motors (up 7.03 per cent) and ITC (up 2.5 per cent) together contributed 64.42 points to the index. Satyam Computers, BHEL, and Infosys Technologies were other major gainers.

The three stocks that ended in the negative territory are Reliance Energy (down 3.7 per cent), Hindalco (down 2.9 per cent) and Tata Steel (down 2.4 per cent).

All the sectoral indices, except BSE Metal (down 1.02 per cent), ended the week in the positive territory. BSE Healthcare (up 5.14 per cent) was the biggest gainer led by Aventis Pharma (up 14.6 per cent), Lupin (up 13.14 per cent), Glenmark Pharma (up 12.9 per cent), Pfizer (up 11.9 per cent) and Novartis (up 11.8 per cent).

BSE Oil & Gas (up 4.76 per cent), BSE Auto (up 4.48 per cent), BSE FMCG (up 3.43 per cent) and BSE PSU (up 3.42 per cent) were other major gainers.

Poor sentiment threatened to stall the market's rally this week, which came on evidence of lower inflation risk and a slowing US economy.

Yet the market's recovery from its session lows aided by a $36 billion stock buyback announced by Microsoft Corp.

shows investors remain optimistic that the Fed will keep the economy strong enough to withstand recession. The Dow Jones Industrials ended the week up 293.44 points, or 2.65 per cent, ending at 11,381.47 points.

What to expect this week

Market sentiments are likely to be positive on account of easing of crude prices and revival of FII interest for emerging markets including India. Mutual funds are also expected to be active participants.

Stock to watch 

IDFC
Last week's close (Rs)	57.43
Prev. week's close (Rs)	57.75
Week's high (Rs)	59.70
Week's low (Rs)	55.78
Number of up/down move	2/2

Goldman Sachs bought 4.2 crore shares or 3.2 per stake in the infrastructure financing major, IDFC at Rs 60 each.

Franklin Templeton Mutual Fund already holds a 1.11 per cent stake in the company. The company concentrates on energy, telecommunication and transportation sectors and is expected to be one of the biggest beneficiaries of the infrastructural boom prevalent in the country.

After a subdued March 2006 quarter, the company registered robust growth of over 50 per cent in the loan book and about 20 per cent in the net profit in the June 2006 quarter.

Stock of the week 

MAHINDRA GESCO
Last week's close (Rs)	871.80
Prev. week's close (Rs)	618.04
Week's high (Rs)	908.95
Week's low (Rs)	616.50
Number of up/down move	4/0

Mahindra group company and real estate major, Mahindra Gesco shot up by 41 per cent over the week. The company got an approval to set up a 72-acre, Rs 150 crore SEZ for biotechnology at Thane.

It has also formed a joint venture with Rajasthan State Industrial Development and Investment Corporation to develop a 2,500 acre SEZ and a 500 acre domestic tariff area near Jaipur.

The company is also setting up SEZs at the Mumbai-Pune highway and residential projects at Mumbai, Pimpri and Faridabad. It also owns major land banks.