Market Close: Open high and close low.. - its getting common now !

It was another weak session for the day. The global cues were not supportive, ahead of US Federal Reserve decision on interest rate. Indian indices started the day on a subdued note and traded on both sides with volatility. The indices edged lower due to lack of buying support as investors stayed away from market ahead of UP election results and that also brought in some level of profit taking. Some value buying in the morning brought the indices up but failed to sustain at higher levels and made inroads in to negative region, closed deeper in red. IT stock were hit badly as Rupee maintained its strength against Dollar. Profit booking was seen across the board except selective stocks in FMCG, Metals and Cement. Even the mid and small caps came in for profit taking. Asian markets closed in red, while European markets were in the red too as we write this.

Sensex closed down by 114 points at 13765.46. Weighing on the Sensex were losses in Hero Honda (679.55,-4 percent), SBI (1081.5,-3 percent), Infosys (2002.35,-2 percent), Dr Reddys (691.25,-2 percent) and Wipro (546.3,-2 percent). Losses are restricted by gains in ACC (885.55,+3 percent), Grasim (2489.1499,+1 percent), TISCO (553.15,+0 percent), L & T (1697.3,+0 percent).

Food stocks closed mixed. Tata Tea has entered into a joint venture (JV) agreement with Zhejiang Tea Import and Export Company Ltd of People's Republic of China. The agreement involves setting up a joint venture company at Economic Development Zone of Anji County, Zhejiang, PRC to manufacture and market value added tea beverage products. Tata Tea will own 70% of the registered capital of the JV company. Tata tea rallied recently on news that there was interest shown by coke in its Water business which it had recently acquired at a huge premium in the US. The stock closed marginally down. While its peer Nestle ended marginally up and ITC closed down by 1%.

Dabur India group has posted good results for the quarter and for the fy2007. Dabur has posted a net profit of Rs 283 cr for the year ended March 31, 2007 (FY07) whereas it was Rs 214 cr for the year ended March 31, 2006 (FY06). According to an official release issued by the company, total income for FY07 is Rs 2259 cr whereas it was Rs 1913 cr for FY06. For the quarter ended March 31, 2007 (Q4FY07), the company has posted a net profit of Rs 77 cr whereas it was Rs 50 cr for the quarter ended March 31, 2006. Total income for the quarter is Rs 584 cr whereas it was Rs 482 cr for Q4FY07. Consequent to the merger of three subsidiaries namely Balsara Home Products, Balsara Hygiene Products and Besta Cosmetics with Dabur retrospectively from April 01, 2006, the current period/year reflect post merger figures and hence were not comparable with figures of previous period/year. FMCG stocks closed in mixed bag, Dabur closed down by 1.81% while its peer HLL ended marginally down, P&G and Colgate ended marginally up.

Murugappa Group of companies, with varied interests in sugar, abrasives, ceramics, fertilisers and sanitary wares, today announced that it would be investing Rs 1,000 cr in its several business arms. These investments would include an exclusive sugar factory for exports in a special economic zone to be set up by the group at Kakinada in Andhra Pradesh. The group owns two fertiliser factories, Carborundrum Universal. TI cycles and EID parry, reported a profit of Rs 649 cr for the last fiscal, which was 10 per cent higher than the previous year. Sales rose by 15%, to reach Rs 8,446 cr. Barring sugar all other commodities reported higher sales. Due to fluctuations in the international prices, sugar sales came down by 22% as also profits by 45%. Carborundrum Universal, the blue chipped company of the group, reported Rs 146 cr as profit, adding Godavari Fertilisers and Coromandel fertilisers, two fertilizer units reported a profit of Rs 202 cr. The group had picked 49% equity stakes in Sanhe Yanjiiao Industrial diamond company in China during the fiscal and the group's new tubes factory in Sushou, China would commence production very soon. The group's another unit at Jingri in China, to produce bonded abrasives, was expected to be operational in the third quarter of next fiscal. The group is expanding its business aggressively to meet the growing demand; this investment helps the company to capture the market. The group companies closed in mixed note.

Technically Speaking: It was a volatile session for the whole day before closing down. Sensex touched intraday high of 13956 and low of 13741. Sensex up trend remains intact as long as above 13600. Good support lies at 13645, Resistance lies at 13900 and 13970. Market turnover was pretty good at Rs 4261 cr. Overall breadth was in favor of Declines, where the Advances stood at 891, Declines stood at 1673.