Market Close: Expiry of Derivatives cast shadow on market.

The effects of the FNO expiry could be witnessed today as volatility continued throughout the day. The indices had a sea saw ride as it swung on either side. Global cues were mixed as BOJ rate hike kept market ranged. Buying interest was seen for some time but soon was overpowered due strong bout of profit booking. Selling pressure was seen in the IT, FMCG, Pharma and Banking stocks. Suzlon and Hero Honda were amongst the lead gainers while GAIL and Ranbaxy bore the brunt of profit booking. Small caps had the momentum as buying interest was seen there.

Sensex ended down by 65 points at 14188.49. Weighing on the Sensex were losses in Ranbaxy (382.5,-3 percent), Satyam (462.2,-3 percent), Infosys (2312.8999,-2 percent), HLL (195.5,-2 percent) and BHEL (2316.55,-2 percent). Losses were restricted by gains in Hero Honda (739.5,+3 percent), TISCO (455.2,+2 percent), Bharti Tele (806.3,+2 percent), Hindalco (150.45,+1 percent) and HDFC (1672.55,+1 percent).

One of the big events which everyone was waiting for finally came in as the Bank of Japan (BoJ) raised its key interest rate by 25 basis points to 0.50%, placing more emphasis on signs of a strengthening economy than a lack of inflationary pressure. Financial markets had been divided on whether the central bank would keep rates steady, as many politicians hoped it would, or whether it would move to head off the economic risks that arise from having ultra-low money rates for too long. Some liquidity outflow can be seen from the system as Japan has been the major investors in emerging markets.

SKF India Ltd ended up by 4.5 % as the company posted its Q4 results. The results were very impressive with net profit of Rs 101.96 crore for the year ended December 31, 2006 as compared to Rs 64.07 crore for the year ended December 31, 2005 an increase of almost 60%. Total income increasedby 65% from Rs 816.01 crore for the year ended December 31, 2005 to Rs 1350.83 crore for the year ended December 31, 2006. SKF India plans to set up a new plant in Uttarkhand (Uttaranchal) to manufacture bearings. SKF India is a market leader in the bearings industry and derives about 65% of the revenues from the automobile market. It has a strong presence in the original equipment segment as well as replacement market.

According to a leading business daily, India has no plans to subsidise sugar exports and is considering building a buffer stock to help ease the pressure on mills from falling prices. With huge surplus and softening domestic and international prices, sugar mills have been urging the government for transport and freight subsidies to make exports viable. Sugar prices have fallen in the last six months to about US$ 300 a tonne from US$ 400 per tonne, making exports unprofitable. India had banned sugar exports in August when global prices were high and lifted the restriction in January when prices fell sharply. The domestic sugar companies are facing huge pressure on the realisation and margin front. Being a highly regulated industry, the sugar companies may continue to face bitterness of the government policies till more clarity is given. Major sugar stocks traded up.

Technically Speaking: Market traded volatile in both the territory but finally lost its ground and ended in the red zone. Sensex rallied between the channels of 14,157 - 14,312 level. However, the breadth had been in the favor of the Declines as they stood at 1526 while the Advances were only 1074. Volumes was decent at 4083cr. Sensex has a resistance at 14300- 14325 level. A move above that would take to 14600 levels. However on the lower side, a good support is seen at 14020 level.