Online BusinessMarkets at a glance
Key benchmark indices surged as India’s economy expanded at higher than the expected rate of 7.9 per cent for October. Global markets gained after Dubai financial crisis fears receded. Indian markets opened strong at the start of the week, however, the week’s close saw some profit booking as worries mounted of a weaker-than-expected jobs report from the US.
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The BSE Sensex rose 470 points or 2.8 per cent to 17,101 during the week, while Nifty rose 167 points or 3.4 per cent to 5,109. Midcaps and small caps outperformed the broader indices, BSE Mid-Cap index and BSE Small-Cap index rose 4.6 per cent and 6.6 per cent, respectively.
Markets this week
A better-than-expected recovery in the domestic economy and positive economic data from US should boost sentiment. Non-farm payrolls from the US fell by 11,000 in November, compared to higher forecasted numbers in the region of 85,000 to 125,000. US unemployment rate dropped to 10 per cent in October.
The market which got a boost from the GDP numbers would eagerly await the industrial production numbers to be released on Friday. Global flows are expected to be robust, about $900 million has come in to the Indian markets in the first three days of December.
Stock to watch
RELIANCE POWER
Last week’s close (Rs) 150.13 Prev. week’s close (Rs) 141.20 Week’s high (Rs) 156.85 Week’s low (Rs) 142.20 Last week’s ave. daily turnover (Rs cr) 68.59 Prev. week’s ave. daily turnover (Rs cr) 28.78 Number of up/down move 4/1
The Allahabad High Court judgement pertaining to the 7,480 mw Dadri project could bring the Reliance Power stock into play this week. The High Court has directed the state government to follow certain procedures in the land acquisition process.
As per the judgement, the land owners who wish to raise objections to the acquisition of their land are required to refund the compensation received by them and thereafter the government will decide on their objection. Reliance Power in June 2004 signed a state support agreement with the Uttar Pradesh government to acquire the 2,500 acres of land for the aforesaid project.
For the Dadri power project, which is already facing hurdles over the availability of gas from the KG basin, this news and further development on this could be crucial. The stock made a 52-week high of Rs 210 in the month of June 2009 and corrected later to trade currently at Rs 150.15 per share.