Market Close: Profit booking grips in!

It was a choppy session for Indian markets, to end in flat. Taking cues from Asian markets India started with a gap up of around 100 odd points but could not sustain at days higher level and slipped in to negative zone. However, value buying was seen in small cap stocks which gave positive breath to the markets. Despite periodic attempts of recovery mid-way proceedings remained the indices in negative zone. The profit booking at every recovery under arrest the indices not to enter positive zone. The lack of investor interest was restricted to the frontline stocks to perform. IT, oil, metal and realty are among the top laggard while Reliance pack stocks are the most active stocks on the bourses. Rel power was in lime light on the back of board meet on Feb 24 to mull bonus issue to all shareholders. Investor?s interest was much seen in mid and small caps which outperformed the front line indices. Asian indices closed a mixed bag while the European is witnessing a positive trend currently.

Sensex ended down by 67 points at 18048.051. Weighing on the Sensex were losses in Satyam (426,-3 percent), Tata Motors (732.55,-2 percent), TCS (851.95,-2 percent), BHEL (2216.2,-2 percent) and SBI (2254.95,-2 percent). Losses were restricted by gains in ITC (209.6,+3 percent), Hindalco (184.1,+3 percent), HLL (216.6,+3 percent), ICICI Bk (1208.1,+1 percent) and Bajaj Auto (2199.8999,+1 percent.

India's biggest non- state iron ore exporter, Sesa Goa Ltd was the star for the day amid hope that the price increase agreed upon by Japanese steelmakers will lead to a hike in the domestic price as well. Asia's three biggest steelmakers agreed to pay 65% more for procuring iron ore from Brazilian mining major CIA. Vale do Rio Doce, setting a global benchmark for the key raw material. Iron ore prices will rise for a sixth year in a row to a record on the back of strong demand from China, boosting earnings. Sesa Goa is well positioned to ride the current boom in the iron-ore market on the back of an output of approx 10mtpa, which it is planning to increase to 15mtpa over the next three years. The company has access to resource & reserves of approx 207mnte (i.e. 20 years of mining life) of iron ore. Stock ended up 6.2%.

Leading automotive player Mahindra & Mahindra have reported that they have signed a memorandum of understanding for a joint venture with WASS for the manufacture of underwater defence systems in India. The Indian automaker will have a 74% stake in the joint venture with Whitehead Alenia Sistemi Subacquei (WASS) which will develop and make underwater mines, harbour defence systems and torpedoes. Mahindra intends to be a full-service provider to the defence services and the systems would initially be made in Mahindra's facility in Pune in western India, and production would be moved to the eastern city of Vishakhapatnam in two to three years. With this M&M are also in talks with the British defence contractor BAE Systems to jointly develop a mine-protected vehicle which is in pine line in negotiation. Stock ended up 3.5% on the back of news.

Technically Specking: Sensex traded in a narrow range of 200 odd points before ending down by 67 points at 18048. It made intraday high of 18257 and day?s low of 17901. Turnover stood low at Rs 4857 Cr. The breath has been in favor of Advances, where Advances stood at 1850 against the Declines of 878. Sensex Resistance is seen at 18400 while Support lies at 17900. We fell that market will be trading in this range for some more days.