Market Close: Numbers and SBI fuel the rally

cheerful trading for the investors as Indices witnessed buying and support from the global market. Sensex moved steadily into the green territory as the trading session progressed. Heavyweigths like SBI, Hindalco, Tata Motors surged on which supported Index to end higher and selective Midcaps and SmalCaps surged too kept the momentum in the market.

Auto surged on the back of better than expected Sales figure for the month of Jan07. Hero Honda,Tata Motors jumped to end in green while Bajaj Auto closed marginally in red, Cement too traded firm with ACC results which were fantastic and some of the cement companies reported their sales figure for the month of Jan07. Action was seen in fertilizer companies after cabinet announced its new urea pricing policy. RCF the largest public sector in fertilizer industry ended the day higher by 7%. Other fertilizer players like National Fertilizers, Nagarjuna Fertilizers also rallied.

Sensex ended up by 176 points at 14267.18. It was helped up by gains in SBI (1203.1,+6 percent), Hindalco (182.95,+4 percent), Bharti Tele (731.65,+3 percent), Tata Motors (905.65,+3 percent) and RCVL (473.8,+3 percent). Restricting the gains were TISCO (457.75,-1 percent), BHEL (2497.3999,-1 percent), HLL (207.2,0 percent), Grasim (2774.6499,0 percent) and Bajaj Auto (2761.8,0 percent).

State bank of India rallied after Union Cabinet's decision to allow RBI to sell its stake in State Bank of India. The transfer would take place by June and the valuation would be based on market prices. The value of the deal was likely to be around Rs 40000 Cr Rupees ($9 billion), assuming a share price of Rs 1,300. The Reserve Bank of India (RBI) decision of transferring the stake as it felt it was inconsistent for it to be both a bank owner and regulator. The news fuelled the Investors and the stock rallied to cloe up by over 6%.

Hanung toys was up by 12% after delivering healthy results this quarter, total sales growth was 26% on QoQ to Rs 80 Cr by this quarter ended Dec 2006. Ebidta Margins jumped and they were a good 17% from the earlier lower levels. Net profits jumped too 34% QoQ at Rs 8.2 cr for the quarter and that on the back of higher margins. This quarter soft toys have accounted for 50% on sales and rest comes from home textiles. Export contributed around 75% on sales. Valuations are attractive at current levels, We are positive on this. Future is positive while the overall demand outlook for the future remains good. We think this can do more in the coming day