Market Close: Continues to loose the strength!

After witnessing a panic selling for last two sessions, Indian indices displayed a volatile trade for entire day. Indices traded on both the sides; there was no clear direction where it was headed. After green start markets lost the strength and fell into negative region, some level of value buying helped the indices to recover from lows and tried to sustain in green teritory. However, heavy selling at last hour of trade kept the indices down till the end. A sea saw session for the day; the global cues were not supportive, Asian markets ended mixed and European markets are trading in green. Sectors like Banking, IT, Oil & Gas and Realty stocks were under pressure. FMCG and Capital Goods cheered the day. Investors preferred to buy mid and small caps, which were battered for last 5-6 sessions.

The ministers meeting for fuel price hike which was scheduled today afternoon has been postponed. Some reports state that Government may hike petrol prices by Rs 4 per litre and diesel by Rs 2 per litre. A hike in fuel prices will result in increase in inflation and also negative for logistics and cement companies, but certainly good for oil marketing companies.

Sensex closed down by 167 points at 19700.82. Weighing on the Sensex are losses in Guj Ambuja (130.8,-4 percent), ICICI Bk (1321.8,-3 percent), RIL (2996.25,-3 percent), Ranbaxy (367.9,-3 percent) and Rel Energy (2212.7,-2 percent). Losses are restricted by gains in ITC (217.1,+4 percent), Maruti (867.3,+3 percent), L & T (4077.7,+2 percent), Cipla (209,+2 percent) and BHEL (2348.5,+2 percent).

Paramount Communication (Paramount) is one of the leading manufacturers of Power Cables, Railway Cables and Telecom Cables. It supplies large variety of specialized cables and wires for diversified range of industries like Railway, Telecommunication, Space Research, Thermal and Nuclear power plants, Petrochemicals, Fertilizers, Steel, Electronics and various other industries. Paramount has two manufacturing units located at Dharuhera, Haryana and Khushkhera, Rajasthan. For the second quarter 2007, top line grew by 32% to Rs 116 cr and the bottom line was up by 9% to Rs 10 cr. The Ebidta also up by 8% to Rs 18 cr on yoy basis. The Ebidta margins were down by 600 bps due to increase in cost of raw materials. The raw material constitutes around 70% of net revenues. Valuations are certainly attractive; the business scenario is extremely promising. For more details please do read our detailed note here.

HCL Technologies reported flat results for the second quarter. It has posted standalone net profit at Rs 267 cr for the quarter ended December 2007 as against Rs 264 cr in previous quarter. Standalone net sales increased to Rs 1,129 cr from Rs 1,103 cr. Consolidated revenues went up at Rs 1,816 cr as against Rs 1709 cr and net profit at Rs 333 cr from Rs 286 cr. Net profit margin declined to 23.64% from 27.24% and net sales increased to Rs 1,129 cr from Rs 977 cr on yoy basis. The company added 2312 employees. The slow down in US and appreciating Rupee will have a major impact on performance of IT companies.

Technically Speaking: An extremely volatile session for the day as Index traded on both the sides without clear direction and ended with loss of 167 points. Sensex touched intraday high of 20,026 and low of 19,644. Overall breadth was in favor of Advances, where the Advances stood at 1980, while Declines at 860. The turnover was good at Rs 8,423 cr. Sensex had tested the breakdown level today and failed to hold above it. Next major support is at 19,500 if broken 19,060 and 18500 are on card. On the higher side Resistance will be at 20,050 and 20,250.