Close: Post Budget chaos continues

here was no clear direction in the initial trading sessions as to where the market was headed after a volatile start and was followed by choppy sessions. Buying / Short covering was seen in final trading session after buying activity picked up at lower levels before ending the day in green. Steel stocks traded strong as Hot Rolled coil prices were hiked. Support from the Global front was lacking as volatility in Chinese markets continued to send jitters to investors Global investor. Asian Indices ended in Red while the European indices were in positive.

Sensex closed higher by 221 points. The Gainers for the day were Satyam (436, +6%), TCS (1,253, +5.43%), HDFC Bank (980, +5.08%), Wipro (586, 4.48%). While restricting the Gains were Bajaj Auto (2517, -3.82%), ACC (875, -2.78%), Gujarat Ambuja (113, -2.54%), Hindalco (137, -2.26%).

The monthly sales numbers of the Auto companies were released by the respective companies. Sales of Hero Honda stood at 2.8 lakh units up 12% yot. The numbers were good in a competitive two wheeler segment. Market share touched 40% in November. No price hike is planned by the company. In fact the papers today talked of a price cut. The stock slid by a percent down for the day. Bajaj Auto also slipped down on negative numbers.

TVS Motors reported a 6% jump in motorcycle sales during February at 70,155 units compared to 66,391 units in the same month last year. The company reported a 10% increase in its total two-wheeler sales at 1,20,110 units during the month against 1,08,923 units during February 2006. TVS expects to launch a new model this month month and expects stronger growth in the segment during the year. TVS sold 19,937 units of gearless scooters 'TVS Scooty' in February compared to 16,052 units in the same month a year ago, an increase of 24%. The company's exports grew by 33% in February at 8,017 units. The numbers have been above the expectations and the decent growth is seen in the exports. TVS too slipped lower for the day.

Bajaj Auto the arch rival of Hero Honda in the Two Wheeler segment also reported a negative growth of 2% on Yearly basis. Sales of motorcycles fell to 1,71,780 units from 175,256 units. While the over all sales of all two-wheelers fell 3% to 1,74,220 units from 1,79,880 units. Company continued to grow in the three-wheeler segment. Sales in this segment increased by 8% and stood at 27,992 units against 25,896 units in the same month previous year. However, Stock was smashed down by 4% for the day.

Cement companies were hammered on increase in excise duty by 50%. Unlikely that cement will sell below 190 per bag. The price hike will be passed on screamed the papers.. but clearly the manufacturers are on the backfoot given the FMs unhappiness on the price increase.

Technically Speaking: Declines out numbered the Advances and there were 1435 declines against 1140 advances. The volume for the day stood at Rs. 4097 cr. The resistance for the day was between 14,227-14,401 levels while support lied at 12,945-12737 levels. Sensex is moving towards 13,300 levels which could be a pull back. As of now Bulls have clearly showed strength at 12,800 levels.