Market Close: India...A different story

Market opened with a gap down following the global cues. Although there was a 25 bps cut in discount rate in US the investors were not happy resulting US indices to sink in red. Indian indices were with no exception and started off with weak note but later saw value buying. Markets managed to recover nearly 280 points from days low till the last hour of trading session to end in green. Recovery was seen on the back of better than expected industrial growth number at 11.8% Vs 4.5% YoY where markets expected was 11% which supported the market. Metal, Realty and Oil & Gas were the major gainers. IT and Banking stocks ended under pressure. Midcap and Smallcap outperformed ended up by 1.5%. Indian markets outperformed most of the Asian which all ended in red. European indices are trading in red.

Sensex ended up by 85 points at 20375.869.It was helped up by gains in HDFC (3103.95,+5 percent), RCVL (765.75,+4 percent), TISCO (864.45,+3 percent), NTPC (251,+3 percent) and Hindalco (205.65,+3 percent). Restricting the gains were Infosys (1684.8,-3 percent), Satyam (431.15,-2 percent), ICICI Bk (1290.3,-2 percent), BHEL (2648.3501,-1 percent) and Rel Energy (1931.7,-1 percent).

Karuturi Networks was on lime light for the day. Karuturi the largest rose player in the world. It has 2 segments of business, Horticulture and ISP. More than 90% of the revenue comes from the flower business. Karuturi has a total capacity of 650 mn stems. It has 10 hectares in India with 10 mn stems capability inhouse and another 25 mn stems which are managed through contract farming. 100 hectares are operational in Ethiopia with a capacity of over 100 mn stems. Karuturi Networks has been allotted additional 450 hectares of land by the Government of Ethiopia for its expansion and diversification projects. The Kenyan acquisition of Sher brought in abnout 525 mn stems. Globally 40,000 hectares of land is under rose cultivation. However, The field sizes globally are fragmented and are not over 200 acres. Karuturi is one of the big players here now. Do read our research note to know more about the story.

Garnet Construction which was recommened a few days back was on also on circuit today.Garnet is a Mumbai based real estate and construction company. The company develops properties on Residential, Commercial and Industrial land within Maharashtra (Mumbai, Navi Mumbai and Lonavla). Company has a total land bank of 490 acres. The Company has a project at Magic Hills which is located at Panvel. It will develop residential bungalows and IT park. The company has a marketing tie up with Sternon Group to target NRI's in UK, US West Asia. Another residential project Crystal Springs is located at Lonavala. This project is expected to have its own private boat club, mini theatre, gym, pool, special area for business center, etc. There is lots more to know about Garnet. Do read our view in research note. We have a call running here.

Technically Speaking: Market traded volatile but managed to have positive breadth. Sensex made a intraday low of 20045 and high of 20419. Advances outnumbered Declines in the ratio of 3:1. Market turnover was good of Rs 8922 Crs for the day. Markets have resumed the uptrend after a small sideways movement. Traders can trade long with Stoploss below 20000. Support lies at 20200, 20050.