Close: Traded ranged as markets absorbs the numbers !

Indian Indices showed ranged action for the day and closed in positive marginally. Profit taking was apparent at the start of the session in some index heavy weights whereas others saw recovery in sectors like Engineering, telecom, Pharma, and auto sector. Buying activity intensified the index heavyweights to move towards positive territory in sectors like cement and steel stock. Selective Mid and Small Caps saw action as is the case ahead of results season as investors were playing safe ahead of F&O settlement week. Global cues did not help Indian markets to start off good and closed positive and European Markets currently trading positive. Maruti results were not exciting but the fact that the company will launch the Diesel Swift in a few days had the stock jumping. The fact that the Government intends to allow the New pension fund scheme to invest into markets could be the driver tomorrow.

Sensex closed up by 27 points at 14209.24. It was helped up by gains in Maruti (938.6,+3 percent), Infosys (2253.55,+2 percent), BHEL (2319.8,+2 percent), ITC (179.15,+2 percent) and Tata Motors (964.4,+2 percent). Restricting the gains were Satyam (472.35,-3 percent), Ranbaxy (404.3,-2 percent), Rel Energy (505.85,-2 percent), L & T (1551.25,-1 percent) and Guj Ambuja (146.75,-1 percent).

FIIs continue to be conspicuous by their absense. With valuations at what they are, FIIs are not to blame. The interest rate scenario is unlikely to be conducive. Inflation is heading higher and expectation is that RBI will increase rates January 31st when it makes its statement.

Banking stocks were in focus post the inflation data and banks raising deposit rates.. SBI hiked interest rates on one-year deposits to 8.25%, an increase of 75 basis points over its previous rate of 7.5%. The hike comes as an effort on the part of the bank to mobilize deposits to meet the expected surge in credit. As a matter of fact, the credit growth has maintained its momentum on the back of strong demand for loans for housing and automobiles from the retail segment and working capital from the corporate segment. Banks are thus facing pressure on their NIMs (net interest margins) on the back of increasing cost of funds, are looking at raising low-cost deposits. SBI ended up by (0.14%) and others were marginally down.

Media sector traded mixed as Zee Telefilms posted a 185.6% surge in consolidated net profit of Rs 95.81 Cr for the quarter ended December 31, 2006 (Q3FY07) where as the same was at Rs 33.55 Cr for Q3FY06. According to an official release issued by the company total income for Q3FY07 increased 7.5% to Rs 433.16 Cr whereas it was at Rs 403.05 Cr for Q3FY06. The previous figures include the results of the now demerged Wire & Wireless (India) & Direct Consumer Business, hence are not comparable. Stock ended up by (2.3%) and other players ended marginally up as well.

Technically Speaking: It was a choppy session for the whole day before closing. Sensex touched intraday high of 14259 and low of 14111. Market turnover stood low at Rs 3481 Cr. However, the breadth had been marginally in the favor of Advances as there were 1381 advances against 1283 Declines The Resistance level was at 14272 -14339 while Support at 14124 -14044 levels.