Market Close: Custom Cut bring in Profit booking

Government nod for cut in custom duty brought in selling in Indian Indices and weakness in Global markets added fuel to the fall. FNO Expiry too kept Indian Indices to trade weak. Selling intensified in Cement, Banking stocks along with Engineering, Construction, Automobile, Energy, Pharma and Software. Heavyweights like Bharti and Hindalco were the gainers while selective Mid caps and Small caps saw buying interest on the back of good results. The Asian markets traded mixed for the day and also European Markets currently trading mixed.

Sensex clsoed down by 168 points at 14041.24. Weighing on the Sensex are losses in ACC (1037,-7 percent), Guj Ambuja (136.9,-7 percent), Dr Reddys (770,-5 percent), SBI (1173.95,-4 percent) and Grasim (2805.3501,-3 percent). Losses are restricted by gains in Bharti Tele (689.15,+2 percent), Hindalco (164.95,+0 percent).

Maruti results for the 3Q were not spectacular. Net profits at Rs 376 cr up 11%, The lower-than-expected profit was due to adjustment on account of the merger of wholly-owned subsidiary Maruti Suzuki Automobiles India (MSAIL) with effect from April 1, 2006. MSAIL's Rs 54.6-crore loss had the profits down. The sentiment however turned positive on its intention to launch the diesel Swift, in the next couple of days. The government stake sale is another trigger. MUL has been aggressive in discounting to get sales with risks coming in fom higher material costs, rising interest rates, increasing competitive intensity. However valuations at 16 times FY07 earnings seems to offer scope given the fact that this Diesel initiative could kick off well. Telco dominates the Diesel car segment which is growing rapidly.

SBI has declared its Q3 results for FY07. Its third quarter Net Profit stood at Rs 1,065 cr down by 4.5% vs Rs 1,115.1 cr yoy. The company's Net profit (excluding exceptional) was at Rs 1065 cr vs loss of Rs 620 cr. SBI had extraordinary income of Rs 2,048 cr in Q3 last year. Its Q3 NII has gone down by 6.4% at Rs 3951 cr against Rs 4219.8 cr yoy. The NII (Excluding Extraordinary Income) was up by 46% at Rs 3951 cr. SBI provisions and contingencies stood at Rs 1166 cr compared to Rs 470 cr. Banks CAR was at 11.86% vs 12.49%. The Banking sector results were not much encouraging as rising deposit rates had impacted their Net profits. The Bank stocks closed in red and SBI closed down by 4.5%.

Technically Speaking: Sensex traded weak as selling intensified till the closing. Sensex touched intraday high of 14212 and low of 14025. Market turnover stood decent at Rs 4040 cr. Overall breadth was in favor Declines where Declines stood at 1723 and advances stood at 913. The Resistance level was at 14156 -14277 while Support at 13969 -13904 levels.