Market Close: Uninspiring day with no clear direction.

An extremely volatile day in the market. Global cues were weak as ECB hiked interet rate. This hampered Indian markets too. Inflationary worries are high globally and thats not good news for equities. C Rangarajan Chairman of PMs Economic Advisory Council said that it was important to control certain kinds of capital inflows. The markets took the hint towards P Notes. This probably was the reason for the selloff as P Notes have been in debate for some time. The final beneficiaries are not disclosed. Inflation numbers will be declared tomorrow..we will keep the track for you. For today indices started the day on weaker note but witnessed high degree of volatility through out the day and there was no clear direction. The markets ended in red with moderate losses. Heavy selling pressure was seen in Auto, Banking and FMCG stocks. The major two wheeler Hero Honda and Bajaj Auto hit badly due to cut down in production after slowdown in sales due to high interest rates. As per reports Bajaj will reduce production by 10%. The only sector to close in green was IT as Rupee slipped to trade at 40.65 against the US Dollar. Mid and small caps outperformed the frontline indices and closed flat. Asian markets ended in mixed.

Sensex closed down by 70 points at 14186.18. Weighing on the Sensex were losses in Bajaj Auto (2155.25,-3 percent), Hero Honda (697.4,-2 percent), ACC (803.95,-2 percent), Maruti (760.65,-2 percent) and ITC (155.05,-2 percent). Losses were restricted by gains in Satyam (481.15,+3 percent), Hindalco (153.15,+3 percent), Wipro (545.4,+3 percent), RCVL (519.7,+1 percent) and Infosys (1954.5,+1 percent).

Moser Baer India has commenced commercial shipment of its solar photovoltaic cells. The company said that it has firm customer orders exceeding Rs 410 cr. Additionally, the state of the art fully integrated in-line cell manufacturing facility has started producing photovoltaic cells at expected level of output with cell efficiency levels up to 15.5%. According to MBPV, In-line high yield systems are critical for rapid deployment of solar power in large scale and volumes. The response for MBPV product has been encouraging and has queries/orders from customers based out of America, Europe, South Asia. MBPV further announced that it is on track to implement a 20MW module making capacity in the forthcoming quarter. MBPV plans to straddle multiple future technologies and emerge as an engineering & technology driven Company. It is decisively responding to the rapidly expanding solar PV market. MBPV is moving towards technological leadership in this industry and intends to develop a sustainable competitive edge by investing into disruptive technologies. The global photovoltaic market is on a high growth curve. Sales are expected to grow over 6x to Rs 160000 cr by 2010. The stock closed up by 1.80%. We are surprised at the swiftness of this development. It was only recently that the company was looking to enter this business.

L&T won an order from ENOC Processing Company LLC (EPCL), Dubai, U.A.E., for the mechanical erection work of the new process plants of their naphtha hydro treated reformer project. The estimated value of the contract is AED 187.67 million(Rs 200 cr). The project consists of fabrication and erection of piping, equipment and structural erection and other associated works for the new units constituting inter-connecting piping, LPG naphtha HTV / splitter unit, CCR reformer unit, diesel drying unit, LPG fractionation unit and HC flare. The Engineering stocks closed in red. L&T closed marginally down by 1% and its peer ABB and BHEL closed marginally down.

Technically Speaking: It was a volatile session for the whole day. Sensex touched intraday high of 14360 and low of 14139. Resistance lies at 14323, 14452 levels and Support lies at 14101, 14009 levels. Market turnover was pretty good at Rs 4269 cr. Overall breadth was in favor of Declines, where the Advances stood at 1123, Declines stood at 1436.