Market Close: Choppy day ends in green?

Markets managed to open a bit shaky before it gained some grounds from Midcaps and small caps. The 50bps CRR rate hike which seemed to be negative for the Banking sector did not matter much as banking sector ended +1% anticipating the US Fed rate cut which in turn would increase the inflow of capital to the Indian Markets. Sector like Metal, Oil & gas and PSU were among the gainers. On the results front, Bharti's results beat street expectations as non mobile business has helped in the out performance. Realty majors Unitech and DLF are trading in green on the back of good set of numbers. Market traded in both the zone with profit booking at every higher level of the day and managed to end marginally in green off day's high ahead of the Fed meet announcement. European indices trading strong in green.

Sensex ended up by 55 points at 18,838 level. Supporting the indices were gains in Rel. Energy (4.29%), Ranbaxy (+3.04%), HDFC Bank (+2.89%), NTPC (+2.16%) and ONGC (+2.09%). Restricting the gains were the losses in Hind.Unilever (-5.39%), BHEL (-2.05%), Tata Motors (-1.73%), Cipla (-1.66%) and L & T (-1.46%).

Bosch Chassis System India Ltd performance for the quarter was not good. Topline grew by 5% to Rs 131 cr on y-o-y basis. EBIDTA was down by 21% to Rs 16 Cr. EBIDTA margin was down by 400 bps to 12% due to increase in raw material cost and employee cost. PAT dropped down by 25% to 9.4. NPM was 300 bases down to 7%. BCSIL is expected to deliver strong growth over the next few years on the back of robust growth in passenger vehicle segment, use of ABS system for cars to be exported out of India & increased outsourcing from Bosch group. Operational improvement and cost reduction will provide some benefits in the long term perspective. At the current market price of Rs.400, the stock trades at 22 times annualized EPS. Business seems robust though the pricing pressure from OEMs is bearing on the company. Valuations certainly don't leave much on the table and the margins pressures is why this stock underperforming. We believe that over the next two years the margin pressures would subside. We remain positive on this for long term perspective. One can look to invest in this stock. Do read our detailed note to know more on this.

Numeric Power typically a mid cap stock has seen strong upsides. It?s up over 80 % since our last coverage. After inclusion of the views about this stock in our today?s Economy section it ended 20% up. Revenues and bottomline were up over 100% yoy. Clearly on valuations at 12 X trailing 4 quarter earnings. There is still some scope for upsides. It?s the illiquid nature of this Rs 1200 cr market cap company which keeps the funds away. This is the largest UPS manufacturer in the country. Expect liquidity to pick up as company gets larger in size.

Technically Speaking: Market trades volatile for the whole day ahead of the Fed meet. Sensex traded between an intraday high of 19984 and low of 19735. The breadth was in favor of Advance as there were 1537 advances against 1435 advances. The volume for the day stood at Rs.10018 Cr.