Market Close: Upward Journey continues..

It was a jump start for the Indian Indices as Sensex and Nifty cruised above 15k and 4400 levels. Sensex crossed 15 levels but failed to susatin above this milstone on Friday. Indices traded strong but witnessed some level of profit booking in the mid session. We are nearing first earning seasons and the markets hoping for good. IT & Capital goods stocks showed some strength as they helded the Indices at higher levels. Techy Major Infosys results are to be out on 11July and the market hopes the results from all techies to be weak due to slip in Dollar against the Rupee. Banks showed their smiles as there was some market news that the RBI might cut CRR (CRR) rate. Good buying was seen in sectors Cement, Metal, Power and Software while Auto was under selling pressure. Midcaps and smallcap outperformed the benchmark indices giving market an excellent breadth. Asian market ended up strong as Nikkei traded 7 Years high closing while Europe trades in green.

Sensex ended up by 82 points at 15045.73. It was helped up by gains in Rel Energy (615.5,+3 percent), L & T (2415.8,+2 percent), Bharti Tele (883.55,+2 percent), ONGC (895.85,+2 percent) and TCS (1176.55,+2 percent). Restricting the gains were HLL (195.35,-2 percent), Hero Honda (686.5,-2 percent), ICICI Bk (970.45,-1 percent), Cipla (211.15,0 percent) and Grasim (2764.8,0 percent).

Greenply a well established India player in interior infrastructure industry continued with fabulous performance on the board today. The 4th quarter results were outnumbering with Top line grew by 76% to Rs.111 Cr. The company procures raw material from local forestry in Nagaland and social agro forestry in Uttaranchal which provides easy availability and low transportation cost. As a result margins at operating level improved by 260 bps compared to same period last year. EBITDA enhanced by 126% to Rs.13 Cr for the quarter. Uttaranchal plant went on line during 2006-07. It is expected to go on full steam in FY2008. It enjoys excise and tax holiday and benefits have started flowing to the bottom line. Consolidated Revenue for FY2006-07 was Rs.403 crs where as PAT stood at 22.6crs up over 60%. The Valuations are attractive and we remain positive on this story. We have a detailed research note on our site which will provide you a clear picture on the stock. The stock has run up today up by 9%.

Hikal a leading player engaged in manufacturing and marketing of fine chemicals for the Pharmaceutical and Agrochemical industries reported that it has bagged contract worth Rs 200 Cr from Alpharma a US-based specialty pharmaceutical company. The contract is a long-term agreement for the manufacture and supply of an active pharmaceutical ingredient (API) for the veterinary sector. Hikal will be manufacturing the API at its USFDA approved plant at Jigani, Bangalore. The stock is performing well on board and ending up by 13% after the news.

The Drug maker Dishman Pharmaceuticals & Chemicals has inked a MoU with The Netherlands-based Solvay Pharmaceuticals (Solvay) to acquire the fine chemicals vitamin D and vitamin D analogues business for an undisclosed amount. As per the reports all facilities, people and activities located at Solvay's Veenendaal site in The Netherlands and technology, patent and intellectual property rights will be transferred to the company after satisfactory completion of due diligence procedures, approval from the relevant authorities and appropriate employee information procedures. The transfer of ownership will be completed during 2007.Main activities of this group are the production, marketing and sales of cholesterol and cholesterol related products. This MoU is in line with the Dishman business which will bring new customers and new products to its product portfolio. The stock ended up by 3.5%.

Technically Speaking: Sensex is at all higher level and can upward baised. As the Sensex is at the all time high now, action is picking up in the Midcaps and the small caps. Expect more such moves to happen. The trend is up.Sensex touched an intraday high of 15085 and low of 15005 levels. Overall breadth was in favor of Advances, as Advances stood at 1622 against the Declines of 1047. Market turnover was pretty good at Rs 4551 Cr. Sensex technical support is seen at 15003- 14915 which resistance near 15120 levels.