Market Close: Upbeat ranged action !

It was a ranged session for Indian markets. Even in absence of global cues, Indian indices started the day on a fair note. The damp Industrial production figures failed to dampen the ethusiasm.. as the markets digested the slower 7% growth blaming it on the low base. Investors' mood remained positive throughout the day. The buying momentum kept the indices to trade ranged in green. However some profit booking set in during mid day but buying emerged and markets managed to close with modest gains. Asian markets ended in green, European markets were trading in red at the time of writing this. Value buying was seen in index heavy weights like Maruti, SBI, HDFC Bank and ACC. Most of the indices closed in green except FMCG. It was Auto, Banking and Cement stocks which witnessed value buying. The Govt postponed the meeting for the subsidy for Fertilizer companies as result of this the stocks came off. This has been a sector which has been rallying quite strongly oflate. Mid and Small caps were closed inline with the front line indices.

Sensex closed up by 109 points at 15614. It was helped up by gains in Maruti (892.1,+4 percent), SBI (1675.85,+3 percent), HDFC Bk (1212.6,+3 percent), ACC (1128.8,+2 percent) and Grasim (3264.45,+2 percent). Restricting the gains are HLL (215,-1 percent), Hindalco (153.95,-1 percent), Dr Reddys (641.55,-1 percent), TISCO (706.6,-1 percent) and Rel Energy (889.55,-1 percent).

SBI's intention to raise money brought in the buyers. Higher equity clearly means that the 20% FII stake will be vacated and fresh buying would get possible. Thats an odd reason for strength for SBI.

We reran a note on Navneet Publication. The company seems headed the Educomp way. It has managed to develop content which it has already sold to 20 schools in Gujarat. The e-content for Maharashtra is slated to be online by November. This e-initiative should change the face of the company from being a laid back one to one that is leveraging its position in the Education space using all available media. Do read the note We had a Wow call on this and the stock is now at Rs 78 . The stock has delivered more than 30% with in a short span of time.

Suzlon Energy Ltd the world's fourth largest wind turbine maker plans to invest about Rs 5600 cr to triple its production capacity by 2009. The expansion would raise Suzlon's turbine production capacity in India to 5,700 megawatt (MW) by March 2009 from 2,700 MW now. It recently acquired subsidiary Germany's REpower Systems would have increased its capacity to 1,200 MW from an existing 700 MW. The total investment in this three year plan is about Rs 5600 cr and most of this investment would be financed by debt. The company also plans to raise its capacity to produce wind gearboxes, made by its unlisted Belgian subsidiary Hansen Transmissions to 9,300 MW by 2009. The company's order book stands at around Rs 14000 cr up from Rs 13200 cr in July with most orders for exports. It also informed that in June it might seek a listing in London or Frankfurt in the next 12-24 months. The expansion plans are aggressive and certainly impressive.. But the valuations certainly leave a lot to be desired. The acquisition of RE power was not an attractive one financially and that we believe could impact earnings The stock closed up by 3.27%.

We had a note on Bharat Fertiliser. This is after many months of waiting for the company to announce its real estate projects. The value of the property itself is couple of times the market cap. But what is more and what are the risk factors is something which will be known only on reading the note.

Technically Speaking: It was a ranged session for the whole day before closing. Sensex touched an intraday high of 15650 and low of 15548. Overall breadth was in favor of Advances, where the Advances stood at 1647, while Declines at 1123. The turnover was good at Rs 5257 cr. Sensex is facing resistance at 15700 but we believe it is just a matter of time before we cross it and move towards our target of 16100. On the lower side supports at 15490 and 15350.