Markets in a minute

It was a bad week for stock investors. The markets witnessed sharp oscillations on rumours of a telecom biggie's link in the spectrum scam and poor numbers from some corporate big boys. Companies that reported poor results were also ripped apart by bears. The only saving grace was the pullback on Friday.

We bring you a recap of all the action in the market:

Teju: How many more shocks will the aam-investor have to take? CAG's investigation is bringing out appalling information everyday. The Antrix-Devas deal has fired a new controversy now!

Biju: What is saddening is that on mere speculation and disbelief of the magnitude of the scam and involved parties, the market is beating up every other stock on the street.

Teju: Yeah, all big and small counters were equally drenched in the scam-rain. Watching the market was a painful experience last week. My portfolio is in red now, even capital is not spared…

Biju: Don't lose heart my friend; market is only for the brave…Did you see how realty stocks received a beating after Mr Shahid Balwa's arrest? A mere reflection of the market's anxiety over governance standards at offices of other realtors…

Teju: True. The most hammered stocks of the week were however the media baron- Maran's Sun TV and the ADAG group companies. But tell me, shouldn't you look at these as good buying opportunities?

Biju: Yeah, but there are other lingering issues too that are clouding prospects of corporates. Post the initial set, most results that were out last week were a damp squib. Lanco Infra, Suzlon Energy, Cipla and India Cements reported poor performance.

Teju: Lanco Infra's stock was down 17 per cent on the day it announced its results. Did the market over react?

Biju: You could say that to an extent. Lanco's revenues were strong I understand. But its poor realisations hurt profits. With the merchant power tariff expected to pick up in the coming summer months, the picture should get better.

Teju: Suzlon's investors are tearing their head over what is happening with the company. Orders are pouring but sales growth is slow…??

Biju: Dip in realisation played spoilsport in the case of Suzlon and India Cements this time. Maintaining margins looks further difficult as the crisis in Egypt is firing commodity prices in global markets. The stock market is actually thirsty for some good news now. The setting up of a panel to unearth black money resting in foreign coffers is a move in the positive direction for the economy but developments on 2G scam day after day is not giving the market the much-needed breather….

Teju: Right!

Biju: And did you read that Mahindra Satyam is looking to re-list in New York Stock Exchange?

Teju: Yes, first a clean-up process and now image restoration! But this news didn't help the stock price much this week!

Biju: There is tension and fear in the market now with the budget session too nearing. How can one expect a positive reaction to anything that's happening around?

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