Close: Choppy market as investors consolidate gains !

Indian Indices were highly ranged for the day but closed in red. Profit booking would best describe this action. The indices traded mixed all day undecided on the direction to take. Selling was seen in the index heavy weights and selective Mid and Small Caps and also the sectors like Auto Ancillary, Energy, FMCG, Chemicals and Finance. Cement and Sugar stocks saw some buying. Asian Markets ended in positive with Europe also in green. But that did not help Indian markets much.

Sensex closed down by 38 points at 14478.19. Weighing on the Sensex were losses in RCVL (489.15,-5 percent), Hindalco (174.3,-2 percent), Hero Honda (719,-2 percent), Bharti Tele (770.5,-1 percent) and HDFC Bk (1088.15,-1 percent). Losses were restricted by gains in Rel Energy (560.25,+2 percent), Ranbaxy (420.05,+1 percent), ICICI Bk (957.35,+1 percent), Cipla (250.1,+1 percent) and HLL (209,+1 percent).

NRC closed up circuit. There was a block deal of 7 lac at circuit. As per unconfirmed reports, Reliance MF was a buyer. The company has 346 acres near Mumbai and indications are that this property has been revalued in a deal which could mean windfall gains for the stock. We have an insight on the stock. Do read for clearer information.


Raymond Apparel Ltd has entered the popular price segment with its new brand called Notting Hill targeted at young professionals between the age-group of 22-30 years. The products would first be distributed through 25 exclusive Notting Hill stores in the state and after taking stock of the response would be expanded to the rest of India in around six to eight months through 400 distribution points. We will be able to comment on it mostly when we see the positioning price levels. The popular segment would be interesting proposition as that is a big market and there gaping holes and provide opportunities. Whether Raymond succeeds here is a question waiting to be answered. We like Raymonds though its struggling with the garments business. The cash is now invested and the strategy seems to be falling in place. With 75% domestic revenues it is a bigger textile domestic play. The company is among the top brands in Fabrics and also has a strong brand for garments in the domestic market. There is a real estate element here as well with 140 acres of land on the outskirts of Mumbai. This could be valued at half the market cap currently and plans are afoot to get value out of that land. Expect benefits from this land over the next couple of years. The Textile stocks traded mixed for the day where as Raymond closed marginally up.

India's largest petroleum marketing company IOC has taken up the merger of its subsidiary and the stand-alone petroleum marketing entity - IBP with itself. The former has already initiated the synchronisation of operations between the two through sharing of infrastructure logistics. IOC has decided to retain the IBP brand even after completion of the merger process. IOC and IBP together have nearly 16,000 retail outlets, out of which IBP operates 3,500 retail pumps. IBP has a 10% market share in diesel and a little over 8% share in petrol sales in the total sales in the country. On the other hand, IOC has 36.9% and 33.8% share in diesel and petrol sales respectively. This merger helps the IOC to strengthen its market share. However the policy of this sector is dependent on the whims of the Politicians. A sector we tend to avoid. IOC closed down by 2% unenthused by the development and more concerned with high crude prices which have lowered realisations of late.

Technically Speaking: It was a seesaw session for the whole day before closing. Sensex touched intraday high of 14564 and low of 14452. Market turnover stood good at Rs 6084 cr. Overall breadth was in favor of Advancers where they stood at 1399 and Decliners stood at 1271. Sensex has managed to maintain the break out and certainly thats positive. 14020 and 14210 should be the stoploss for long positions in this market.