Market Close : Global sentiments hamper..!

Negative trend continues to keep markets under pressure. Following the global cues markets opened with a downward gap and continued to slide till incides were in deep in blood, down about 700 points. All the support levels were breached. Indian bourses have witnesses a burn in their market caps in the last few trading sessions. Market managed to recover from the days low on the back of value buyimg seen at lower levels. Metals , power , realty and capital goods lost major grounds as compared to others. Only banking sector seemed to be less affected. The trend of large IPO?s foraying the markets and leading to a mojor correction at times seems to becoming a thumb rule. Quarterly results posted by companies are good. They continue to sustain and increase their margins. Most large caps companies show strong order book. The fundamentally story still remains to be positive. Its Reliance Power IPO playing on everyone?s mind, draining major flow from the markets. Globally markets have started showing weak trend. Asian indices being no exceptional. Europe trading in red.

Sensex ended down by 383 points at 19868.10. Weighing on the Sensex were losses in HDFC Bk (1675.85,-6 percent), RCVL (731.65,-6 percent), NTPC (258.8,-6 percent), BHEL (2308.8999,-4 percent) and Rel Energy (2266.6001,-4 percent). Losses were restricted by gains in ICICI Bk (1369.2,+1 percent), Bharti Tele (864.85,+1 percent), TCS (944.5,+1 percent), Cipla (205.25,+0 percent) and SBI (2420.8501,+0 percent).

Apollo tryes was the stock buzzing on the quarterly number which were in line with the market expectations. Volume growth was primarily responsible for the good set of numbers reported this quarter. Apollo Tyres reported a good set of numbers for the December ended quarter. The top line witnessed a growth of 13.7% YoY at Rs 974 cr. EBIDTA margin levels improved by 270 basis points on yearly comparison at 13.4%. The EBIDTA was higher by 42% YoY at Rs 131 cr for the quarter. The bottom line levels for the quarter were at 6.4%, up by 240 bps on YoY. Net profit was higher by 80% YoY at Rs 62 cr for the quarter. Apollo Tyres is the leader in the the commercial tyre market in India. CV tyres forms 70% of the Industry value by and tonnage. Apollo has a marketshare of 27% in the Truck and Bus segment and a 24% marketshare in the LCV segment. Apollo tyre produces tyres, tubes, flaps which makes it a powerful player in Indian tyre market. Apollo is the market leader in the replacement market for commercial vehicle (CV) tyres which accounts for almost half of the domestic tyre industry. Stock ended up by 5%.

KEI Industries Limited (KEI) is one of the established player and the second largest power cable company in India. KEI is into manufacture of high and low tension cables (HT and LT), control and instrumentation cables, house wires and stainless steel wires. The Indian Power Cable market is estimated at more than Rs 8,500 cr. About 67,000 MW of power generation capacity and 60,000 circuit km of transmission network are proposed to be added by 2012 as per 11th Five Year plan. The expenditure estimated for power generation alone is at Rs 270,000 cr and Rs 69,500 cr for power transmission. The cost of power cables is around 3% of the investment in power generation and 2% for power transmission. This will generate a huge demand for power cables in near future. KEI is growing aggressively by expanding capacity to meet domestic and international demand. On the whole the macro scenario seems to be best for KEI in future. One can invest in this stock at current levels for medium to long term. Do read our detailed research note on KEI to know more. The story sounds good for long trem investment.

Technically Speaking : Sensex slided heavily in red mainly on the back of global weakness. Indicies madea intraday high of 20,080 and days low of 19,513. Volume was a bit dull at Rs 7860 Crs. The breath was in favor of Declines, where Advances stood at 642 and Declines at 2184. Sensex has broken its major support at 19950 -- 20000 and has closed lower. We could see immediate target of 19060 and 18500. Trend will reverse above 20250.