Close: another day of correction !

Sensex made an attempt at a comeback in the morning session but then hgave up as selling engulfed.Value buying helped in a small comeback. Global cues helped the Indices to trade in the positive territory at last profit booking was seen. Midcaps which were stars yesterday too found the going tough. The advance decline ratio closed in favour of the declines with about 14 declining stocks for every 13 advancing stocks.

The selling pressure mounted on the index heavy weights and selective Mid and Small Caps and sectors like Automobile, Banks (PSU), Cement, Construction and Software came under selling pressure. Asian Markets ended mixed, European Markets were trading Firm though probably helping in not so bad close.

Sensex closed down by 86 points at 13566.33. Weighing on the Sensex were losses in Satyam (467.75,-4 percent), SBI (1174.5,-3 percent), RCVL (423,-3 percent), HDFC (1560.7,-2 percent) and L & T (1431.2,-2 percent). Losses were restricted by gains in Guj Ambuja (139.55,+2 percent), ONGC (918.25,+1 percent), TCS (1255.45,+1 percent), ICICI Bk (912.6,+1 percent) and Grasim (2826.25,+0 percent).

The FII number came in a big negative at over 3500 cr. The reason for the same as it included about Rs 2500 crore of I-flex open offer submission by the FIIs. The provisional figure for the day is also high at -361 crores. If it includes the Gujarat Ambuja deal then the number is certainly quite worrisome. There is complete absense of buyers and markets is thus seeing money being taken off the table. Thats not good near term !

Punj Lloyd, along with its offshore engineering arm - PT Sempec Indonesia - has secured its largest offshore platform project to re-develop the Heera oil field on an EPC basis from Oil & Natural Gas Corporation (ONGC). The order is valued at around Rs 1288 cr. Heera field is located about 80 km west of Mumbai in the Arabian Sea. The scope of work includes surveys (pre-engineering, pre-construction / pre-installation and post-installation), design, engineering procurement, fabrication, loadout, tie-down/sea-fastening, transportation, installation, hook-up, testing, pre-commissioning and commissioning of four unmanned platforms, 70 km of submarine pipeline (rigid & flexible), laying of 25 km composite cables, modifications of seven existing platforms and installation of a new SBM in Mumbai High South. The work is scheduled to be completed within 16 months. The construction stocks closed in red while the Punj Lloyd closed up by 1.7%. Expect a bouyant opening here tomorrow.. but whether that will follow up will depend on the overall market.

Eastern Silk Industries, the second largest exporter of silk garments and fabrics posted good numbers for the third quarter and nine months ended December 2006. In both periods under analysis, new capacities, backward and forward integration and better realizations and change in product mix helped the company to improve its Operating as well as Net Profits. Lower input costs; lower tax incidence and benefits of the foreign exchange helped the company surge over the enhanced interest costs. A jump in other income has also added the Net Profit margin by 4%. The stock closed lower by 3% on profit taking.

NRC closed up circuit on talks that the company had a deal for the Real Estate in Kalyan for Rs 1000 cr+. The company is valued at around Rs 130 cr and a debt of around Rs 150 cr. The company has land of around 450 acres near Mumbai of which about 100 acres is being used by the company. Balance 350 acres apparently has been under negotiation for development. As per market talk a deal has been struck for this development. The stock hit upper limits.

Technically Speaking: It was a down session. Sensex touched intraday high of 13748 and low of 13493. Market turnover stood good at Rs 4693 cr. Overall breadth went in favor of Decliners where advancers stood at 1274 and Decliners at 1369. The Resistance level was at 13725 -13864 while Support at 13470 -13354 levels.