Market Close: Downswing after losing gains..

Indices followed its counterparts the Asian markets as they open firm and and lost bit of gains but ended in green. But, Indian markets opened firm up by 200 points and continued to trade ranged. Sensex lost its early gains as profit booking was witnessed at higher levels. Europe opened in red which also impacted the market. Ther was new listing by OnMobile Global which listed with modested gains at the start but had decent acceptance as it ended up by 19% gains. Banking, Auto , IT sector were among gainers while Power, Oil & gas Metals and Realty showed weakness. Bajaj Auto rallied 5% ahead of its demerger news.

Sensex ended up by 28 points at 18075.66. It was helped up by gains in Bajaj Auto (2322.6001,+6 percent), Ranbaxy (415.4,+5 percent), ACC (789.45,+4 percent), TCS (874.85,+3 percent) and Grasim (2861.6499,+3 percent). Restricting the gains were Rel Energy (1622.15,-4 percent), Hindalco (179.6,-2 percent), ITC (205.4,-2 percent), HDFC (2859.5,-1 percent) and RCVL (605.75,-1 percent).
Paramount Communication is one of the leading manufacturers of Power Cables, Railway Cables and Telecom Cables. Paramount has two manufacturing units located at Dharuhera, Haryana and Khushkhera, Rajasthan. Paramount drives 85% of revenues from Power and Railway cable, 10% from Jelly Filled Telephone cables and rest 5% from Optical Fibre cable. Paramount is expanding the capacity in three phases with an investment of Rs 120 cr. Paramount acquired, AEI cables in UK one of the oldest cable manufacturing companies with a strong reputation. Paramount enjoys the acquisition synergy in terms of marketing network and good distribution in UK and helps to enter other countries also. The valuations are attractive compared to its peers. We are positive on the business with long term view. Do read our note to know more. The stock rallied and got locked up in uppar circuit

Adhunik Metals is into manufacturing of sponge iron, TMT Bars, special grade high carbon and low carbon steel billets along with different grades of alloy steel billets. AML has focused itself in Eastern India because of easy access to high quality raw materials. With an integrated business model from Iron ore to finished products, it caters to the requirement of major Automotive, Construction and Engineering Industry by manufacturing value added products. Majority of revenues are from OEMs that contribute close to 35% of the total revenues. This is followed by automobile (30%), steel (25%) and railways (10%). Its manufacturing facility is at Rourkela, Orrisa. Expansion plans are getting completed in next quarter and from next quarter Adhunik will have 4.5-lakh tonne capacity available from 2.5 currently. We believe primarily growth will be driven by higher realization as a result of rolled products ( rolled from outside rolling companies as its own rolling mill is likely to come in FY08). One can hold this stock looking at longer term perspective. This also got locked up in circuit.

Technically Speaking : Markets closed flat marginally in green. Sensex made an intra day high of 18314 and low of 18018. The breadth was in favor of Advances as there were 1519 Advances against 1228 Declines. Market turnover improving a bit at Rs 5114crs. Sensex support lies at 17800. Resistance lies at 18018.