Market Close: the fall continues...

Global mayhem continued as market opened the day on a weaker note. Major backdrop was from the Asian markets as Hang Seng (-4%) & Nikkei (-3.3%) hit the investors sentiments as the Indian indices traded in red. Investors have been nervously sitting on higher worries about the global weakness which hit the markets hard. As every hour of trade passed by, weakness was seen across the board as selling activity intensified and index heavyweights showed no signs of coming up. Midcaps and Small caps were also under selling pressure as it plunged by 5% and 5.6% respectively. There was clear one way direction in the trading sessions as the market was headed southward with little recovery made at the end as buying was seen at lower levels. All BSE sectoral indices ended negative with many of them going down by almost 3%.

The main reason for global gloominess is that the Yen has strengthened against major currencies and hitting a three-month high against the Dollar which made edgy investors unloaded risky carry trades. The Nikkei average fell 3.34% marking its biggest one-day tumble in nine months and a new low for 2007, as investors continued to dump shares in exporting companies following the Yen's rise. The Hong Kong?s Hang Seng Index tumbled 777.13 (4%). Taiwan market was also down by almost 3.74% as the provisional figures of FII being sellers of almost $591 mn. Asian Indices ended in Red while the European markets were trading with sharp losses.

Sensex ended down 471 points at 12415.09. Weighing on the Sensex are losses in Ranbaxy (320.1,-7.86 percent), Maruti (770,-7.67 percent), Wipro (532, -7.19 percent), Dr Reddys (618,-6.45 percent) and Tata Steel (416.8,-5.95 percent). Losses are restricted by gains in Guj Ambuja (111,+1.28 percent), Grasim (2100,+0.08 percent), .

Major steel producers have rolled back the recent price hike of TMT bars and galvanised steel, while the hike was lower by 50% in case of HR coils. The price of HR coils which was earlier increased by Rs 1,000 per tonne has now been reduced to Rs 500 per tonne. The move is on the back of the government's request to curb inflation. Steel producers had earlier hiked prices in the beginning of the month as a routine activity based on demand and supply factors. Stocks in steel sector ended in red with major losses to SAIL as it ended down by 9%.

ACC slipped by almost 5% after its February shipments fell 7.2% to 1.42 million tonnes year-on-year basis. The production in February 2007 declined to 1.45 million tonnes, down from 1.54 million tonnes in February 2006. Production was hurt due to technical modifications at three of its plants.

Titan industry plans to make UAE as its major export hub. Company also plans to use UAE as its base to reach various overseas markets. Company is well placed in the Indian market with Tanishq accounting for almost 45% of the branded Jewellery market. This branded jewellery market still is very minuscule accounting for less than 4%. Exports contribute 6% of the revenues at present. However key is the Indian Market itself and probably Indians settled abroad who would find comfort in the brand for now. We are positive on the business. The stock ended down by 6%.

ICICI Bank has decided to consider transfer of investments in four subsidiaries in insurance and mutual fund businesses to a wholly-owned subsidiary, which also may lead to the eventual listing of the holding company. ICICI Bank reported that investments in the four subsidiaries may be transferred to ICICI Holdings, the new subsidiary to be formed. ICICI Bank also plans to transfer its investments in ICICI Prudential Life Insurance Co., ICICI Lombard General Insurance, Prudential ICICI Asset Management Co. and Prudential ICICI Trust to ICICI Holdings. ICICI Holdings will consider a public listing of shares by December 2007, to meet a part of its capital requirements for its insurance ventures. However, ICICI Bank intends to retain its majority ownership in the new company. This is value unlocking. These holdings were valued at Rs 200 per share.

Technically Speaking: Markets traded weak as it headed for a southward direction. Sensex touched intraday high of 12716 and low of 12344. Market turnover stood at Rs 3989 cr. Overall breadth was in favor of Decliners, where the Advance to Decliners ratio stood at 1:11. Sensex has formed a running gap pattern. If we fail to cover today's gap in the coming few days, then the speed of fall could increase. Supports for sensex lies at 12300, 11900 and 11460. Resistance is seen at 12800.