Market Close: India rebounces looking at China..

Indian indices witnessed a subdued start on account of Global cues and slipped into negative territory. Since then the sessions were extremely choppy and volatile. Shanghai recovered and ended up by 3% after trading down by 7% for the whole day. This gave a total turnaround to investors sentiment. Buying activity was witnessed in Banking, Software and Engineering counters along with selective small and mid caps. A new member in BSE family, Nitin Fire Protection, received warm well. The impact of increasing crude was witnessed on oil marketing companies.

Sensex closed up by 39 points at 14535.01. It was helped up by gains in SBI (1436.25,+2 percent), Rel Energy (550.55,+2 percent), Bajaj Auto (2249.1001,+1 percent), Infosys (1941.8,+1 percent) and Bharti Tele (837.25,+1 percent). Restricting the gains were ITC (161.8,-2 percent), L & T (1945.05,-1 percent), Guj Ambuja (112.75,-1 percent), Satyam (463.35,-1 percent) and Maruti (799.75,-1 percent).


Balkrishna Industries ended a percent lower after delivering results. The top line for the quarter stood at Rs.269 cr against Rs.187 cr, up by 44% YoY. The EBITDA margins for the quarter stood at 21%. The operating margin for the quarter stood at Rs.55 cr against Rs.45 cr higher by 24% YoY. The bottom line for the quarter was marginally higher at Rs.25 cr against Rs.24 cr. Company has decided to hive off its Paper and textile business. This segments contributes only 3% of the turnover rest comes from tyre...so really nothing much to talk about this. Company is mainly into the manufacturing of OTR (Off the road Tyres) which id just 4% of the industry. However, higher margins enjoyed by the company have attracted the attention of other bigger players of the industry like J.K.Tyres and MRF. Apreciating Rupee is expected to have an impact on the company's profits in the coming quarters as 77% of the company's revenues are from exports. We find Apollo better play in this space.

Greenply Ind ended 4% lower despite delivering good results. The top line for the quarter improved by 76% YoY. The sales numbers for the quarter stood at Rs.111 cr against Rs.63 cr. The EBIDTA margin for the quarter was at 12%. The bottom line for the quarter stood at Rs.7 against Rs.4 cr up by 78% YoY. Company recently launched 13 laminates categories under their Greenlam range targeting the growing interior infrastructure space.Company is well placed in the industry where 90% of the market is with the unorganized players. Brand name is key factor for success in the business. Implementation of VAT has been a big positive as it hits the unorganised sector and makes it more competitive. We are positive on this one.

Technically Speaking : Ranged play in the market as indices made an intra day high of 14,571 and low of 14,433 levels. The breadth was in favor of advances as there were 1,318 advances against 1,270 declines. Resistance lies at 14,600 levels while the support lies at 14,430 levels. The volume stood at Rs.3,776 cr. Sensex is consolidating before breaking into a new high. Mid and small caps likely to remain in flavor.