Weekly Close: High voltage sensex !

Volatility marked its history for global markets and this time India couldn't stay isolated. Indian indices also participated in the roller coaster with global indices. This week Indices marked with deep fall and Sensex Locked in lower circuit to see a halted in trading. And it was more shocking to see that it hit lower circuit for second consecutive day. Panic was seen across the board. But the down fall was further intensified as the broker curtailed buying on shortfall of limits. This fall was really mayhem for investors but it was also an opportunity lost for many who couldn't take the advantage of the fall. The market saw almost 2500 fall however recovered sharply. Session continue to highly volatile throughout the week.

Markets this week: Sensex down 640 points down after swing of 3053 points during the week. Nifty 320 points down. Mid cap -9%, Small cap -14%, MTNL -21%n, ONGC -16%, Suzlon -12%, Tata Power -13.5%, Satyam +9%, Infosys +4%, SBI +1.8%, Bharti Tele +3.5% up. RNRL, Nagarjuna and Hind motors each down by 30%.

Recession fear almost took over US at last. Fed still continues its attempt to heal the wounds. Yesterday Fed announced relief package for the public to maintain consumer confidence. We still maintain our view that this is really delaying the worst. Does it really helps or not needs to be seen.

Indian Economy: Inflation stood at 3.83%. Now it seems to be inching up. Inflation was low so far but it was a base effect. Now as the base effect is over we will come to know the actual inflation number. For now it seems to be headed up. But as crude declines.. Govt. is likely to avoid any petrol and diesel hike on the face of election..So some relief on that front.

Next week will major event to watch for is RBI credit policy. Market is expecting rate cut..and we don't disagree on this.

Greenply came out with good numbers. Top line grew by 39% to Rs.139crs and margins saw fantastic improvement. Greenply is one of our best performers. The stock has really done well since our coverage. The company is into interior infrastructure.. plywood and laminates. The company still seems to be a good play.. and we maintain hold here.

As always Titan had good time. The company posted good growth but margins were bit disappointing as gold prices surge. Valuations were on extremely higher side..However the market correction has once again given a chance enter and enjoy the gains. We are positive here.

SpiceJet reported healthy numbers.. Topline almost doubled to Rs 408.5 crore. EBIDTA witnessed loss on the back of higher crude price (above USD 90-100/barrel). The industry has also shown slow capacity growth during the quarter which implies a cautious approach. Management is more focused on the cost cutting exercise which made them perform well this quarter. We will update more on this very soon.

We had fresh research on Gujarat State Petronet Limited (GSPL). The first company in India to transport natural gas on open access basis and is a Pure Natural Gas Transmission Company. GSPL is developing energy transportation Infrastructure in Gujarat and connecting major natural gas supply sources and demand markets. GSPL provides an 'open access' gas pipeline network to link gas 'owners' with large consumers/city gas distribution companies. GSPL does not run the risk or marketing gas nor does it invest in gas inventories which makes its safe. But we still feel it is best avoided..Do read our note for the same.

Exide Inds a leader in Battery manufacturer was another splendid one which came out with great numbers. Topline grew by 58% on yoy basis. EBIDTA Margins improved by 20bps to 15.1% despite high lead prices in Oct December duration. EBIDTA grew by 60%yoy. Bottomline also reported a good 58% growth on yoy to Rs 55.2cr. Lead prices slipped from december to trade near $2600 per ton from nearing $4000/ton. Thus a further fall in lead prices may not benefit margins immediately. The company expects lead to stabilise around $2500/t. There is an element of valuation of the Life insurance company stake. Exide owns about 50% stake in the Ing Vysya Life Insurance. Valuations appear fair at current levels. Exide with its market leader position is well placed to exploit the opportunity.

Technically speaking Sensex witnessed a big fall of over 3k loss but had big lead of over 2k points in two days. Sensex is on a pullback rally. We expect this rally to get exhausted near 19200--19300. Traders are advised to reduce their exposure to midcaps on rise.