Market Close: Positive ending to a very choppy day!!

Volatile day on the back of FNO Expiry but the Indian indices ended with gains for the fourth straight session. Indices had a good start following its firm global peers. But profit booking at higher levels kept indices to trade in a narrow range. But Final hours of trading witnessed some value buying in index heavy weights like M&M, Wipro, HDFC Bank and Bajaj Auto which pushed up the Indices to end in green. Buying was seen across the board but except Realty stocks which ended in red. Auto, Sugar, Banking and IT stocks cheered the day. Mid and Small caps were inline with the front line indices. Asian markets ended firm while Europe was in green.

Sensex closed up by 129 points at 15121.74. It was helped up by gains in RCVL (534.4,+3 percent), HDFC Bk (1182.05,+2 percent), Bajaj Auto (2364.55,+2 percent), ACC (1061.1,+2 percent) and ICICI Bk (872.05,+2 percent). Restricting the gains were Cipla (165.2,-3 percent), Rel Energy (766.75,-2 percent), TISCO (657.35,0 percent), L & T (2580.3,0 percent) and SBI (1572.3,0 percent).

TTK Prestige kitchen solutions provider embarked into a joint development pact with the Salarpuria Group to carry out a commercial project, on its factory land in Bangalore. Salarpuria is a Kolkata-based property developers. The TTK group, which initially planned to sell its factory land would either build an office complex or a retail mall on it to add another revenue stream. Investment for a mall project is estimated around Rs 150 cr while an office complex will cost about Rs 100 cr. TTK owns 6.5 acres at Dooravaninagar, Old Madras Road, Bangalore. After shifting many of its operations to Tamil Nadu and Uttarakhand from Bangalore, it plans to exploit the land for commercial purpose. It also partnered with Ernst & Young to identify real estate developing agency. It is awaiting clearances and approvals from the Bangalore Development Authority and local authorities to commence work on the project. So this benefits will not accrue immediately. However on back of the envelope calculations indicate land value at Rs 50 per share. Thats quite good. The business valuation is cheap. We have a wow call on TTK and that we believe it should deliver. The stock closed up by 3.26%.

Trai has recommended that there will be no limit on the number of players in telecom sector, relaxation of stringent M&A norms and technology neutrality for telecom licences. It further added that both GSM and CDMA players should pay an entry fee and higher spectrum fee for additional 2G radio frequency allocation. Trai has also proposed increasing the spectrum fee in addition to recommending a one time entry fee for allocation of spectrum beyond 10 Mhz for GSM operators and 5 Mhz for CDMA operators. Trai has not warped under intense pressure from India?s powerful GSM lobby who were demanding a cap on the number of operators, retention of the existing M&A norms and ban of offering dual technology (CDMA and GSM) under the same licence and retention of the existing spectrum allocation norms. As per Trai?s proposals, operators offering dual technologies will be subject to an entry fee, which is equivalent to the amount for obtaining a new licence for that service area. This implies CDMA operator such as Reliance Communications which has applied for GSM spectrum across the country must pay an entry fee of Rs 1,700 cr to offer these services on a pan India level. These new rules would lead to more competition. There are some positives as well in terms of lower fees. The negative is more for the GSM Telecom companies like Bharti and Idea. Rcom ended up by 1.7% while Bharti closed marginally down.

Technically Speaking: It was a choppy session through out the day before closin in green. Sensex touched intraday high of 15201 and low of 15054. Overall breadth was in favor of Advances, where the Advances to Declines ratio stood at 1.5:1. The turnover was pretty good as the market churned Rs 5378 cr. Sensex has expectedly been choppy and closed below 15200. We can expect a correction in the current rise upto 14960. On the higher side, if Sensex breaks above 15200, we might see a rally upto 15650.