Market Close: Profit booking hits the gains...

Mid caps and small caps rocked the day with great action for the day. Auto, power, realty, cement and metal stocks also caught invetsors mood as all traded up. Banking stocks witnessed selling pressure at higher levels. Positive close from US market provided some support for Indian markets to open up, but Asian had not big encouraging which brought down the market sentiments down in India. Market gave up its early gains as the fronline counters went for profit booking. During the Mid session indices managed to trade in a narrow range but slipped into negative terrain with more profit booking at the final hours of trading. Europe started of in green but soon slipped into red and as of now its trading mixed.

Sensex ended down by 65 points at 19633.35. Weighing on the Sensex were losses in ITC (198.8,-3 percent), ICICI Bk (1186.85,-3 percent), HDFC Bk (1655.2,-2 percent), Satyam (422.65,-1 percent) and SBI (2304.8999,-1 percent). Losses were restricted by gains in ACC (1083.85,+4 percent), Cipla (186.85,+3 percent), Bajaj Auto (2426.2,+3 percent), TISCO (862.75,+2 percent) and Hero Honda (708.5,+2 percent).

Plywood and laminate maker Greenply Industries performed well in the market. The company has been successful in it endeavour to become a pioneer in the interior infrastructure company in spite of all odds. It has post good set of numbers with top line growth of 27% and operating margin surged up by 120%. Recently Greenply has picked up a controlling stake in two Gujarat-based plywood manufacturing companies "Galaxy Decor" and "Platinum Veneers". The board also cleared the company's proposal to set up a new laminate-producing unit in Himachal Pradesh as well as an MDF (medium densified fibre board) production line within the premises of its existing Uttarakhand plant. The acquisition will enhance the presence of Greenply in western India and help save logistical costs substantially. Following to this the two companies will become wholly-owned subsidiaries of Greenply Industries. Valuation at the current price appear reasonably attractive. We are positive on the business on longer term basis. Do read our detailed note to know more on the stock. Greenply rocked as it ended up by 14%.

AIA Engineering, a manufacturer of high chrome mill internals, which are used as both consumables and for new projects in the cement, mining and thermal power generation industry. Cement & Mining are key end-user in industries. The company has over 90% market share in India in the cement sector. It has posted decent number for the quarter September ended 2007. The Phase I of its expansion of 50,000 MT commenced production in this quarter. Valuations are very expensive at the current market price. But we are positive on the business environment. The company drives 70% of revenues from replacement market. AIA is one of niche player in this segment and second largest player in the country. The stock on light for the day and ended up 7.5%. Do read our detailed note to know our view on the stock.

Alok Industries was also on the limelight as the company has received a conversion notice from its Paying, Conversion and Transfer Agent for conversion of 9 FCCBs of USD 50000 each aggregating to USD 0.45 million into equity shares. Board of Directors issued and allotted 309112 equity shares of the face value of Rs 10 each for cash at a premium of Rs 61.58 per share as an outcome of conversion of above referred FCCBs. After the conversion the paid up equity share capital of the Company has increased from 17,37,87,514 equity shares of the face value of Rs 10/- each to 17,40,96,626 equity shares of the face value of Rs 10/- each. The stock was up 11% on the back of this announcement.

Technically Speaking: Markets traded in narrow range, with strong positive breadth. Sensex touched intraday high of 19971 and low of 19584. Over all market turnover was decent for the day at Rs 8081 Cr. Market breadth was in favor of Advances, where the Decliners stood at 636, Advances were stood at 2157. Sensex is near its crucial supports of 19450 and 19350 levels. If both are broken, we might go down upto 18000.