Market Close: Profit taking sets in..

It was a disappointing day for the market with no clear support from global indices. Soon after a positive start in morning trades markets could not hold on gains and slipped into negative zone with selling pressure seen across the counters. Index pivotals like IT, oil and gas and Auto stocks were under pressure. FMCG, metal and realty stocks were firm and were attracting buyer?s attention. Midcaps continue to march ahead and outperformed the large caps. New entrant in the bourses Kolte patil closed at a premium after a strong start. Essar steel continued to nose dive for the second consecutive day after the promoters decided to delist the company. Indices managed to gain some strength in the final hours but momentum failed to sustain it which ended with a profit booking session down 300 points near to days low. The cues from global peers were weak as most of the Asia ended down as Taiwan ended down by 3.5% followed by Hang Seng down 3% while Europe remained subdued.

Sensex closed lower by 271 points at 20104.391. Weighing on the Sensex were the losses in Bharti Tele (987.8,-6 percent), ICICI Bank (1242.5,-4 percent), Maruti (1038.35,-3 percent), Satyam (421.05,-2 percent) and ONGC (1227.8,-2 percent). Losses were restricted by gains in ITC (196.9,+4 percent), Dr Reddys (710.6,+4 percent), TISCO (889.4,+3 percent), Cipla (203.75,+2 percent) and Hindalco (208.9,+2 percent).

Sayaji Hotels promoted by Dhamani group active mainly in the hotel and restaurant business rallied after some reports stated that a few well known investors intend to have a stake in the company?s restaurant business. Company has 2 hotels and are located in Indore and Baroda. There is also a chain of restaurants located across major metros in the country. Total room inventory with the company is of 263 rooms. 210 room are located in Indore and the remaining are in Baroda. Indore hotel has an average room rental of Rs 2,200 per day while Baroda?s room rental is of Rs 1,050 per day. The restaurant business of the company is managed through a 100% subsidiary "Sanchi Hotels Pvt Ltd" formed in October 2006. The restaurants are high end and are called "Barbeque-Nation". 5 restaurants are currently active across major cities in the country. Restaurant business seems to be the next revenue driver for the company. Sayaji is now in the transition phase and trades 26 times its trailing earnings. Sayaji can be considered as an investment option with 2-3 year time frame the back of favorable macro scenario. Do read our note on the company to know why. Sayaji closed higher by 5% for the day.

Garnet Construction (Garnet) a Mumbai based real estate and construction company seem to be picked by the bargain hunters. Garnet is a family owned business of Mr. K Kedia (MD)holding 56% in the company established in 1994. The company develops properties on Residential, Commercial and Industrial land. The projects are located within Maharashtra (Mumbai, Navi Mumbai and Lonavla). The Company has a Residential project at Magic Hills which is on the outskirts of Mumbai. The Magic Hill project is located at Panvel which is spread over 400 acres of land. The land is divided into residential project 250 acres and remaining 150 acre of commercial project to develop IT and Hospitality project. Our limited interaction with the company and its management will only bring confidence over time. We need to see whether the Management is capable of delivering what it says. Do read our note on the company for more details. However, The stock closed higher by 5% for the day.

Technically Speaking: Markets traded weak with no clear direction. Indices made a intraday high at 20498 and low at 20065. Tournover for the day was good at Rs 10160 Cr. Advances outnumbered declines in the ratio of 2:1. Technically we see 19800 levels the target for sensex.