Market Close: Common man happy but not investors!

It was extremely a bad day for Indian market started with a gap down on the back of weak cues from the global markets. From the day?s start Banking, FMCG, Capital Goods and Power stocks witnessed huge selling pressure, ended with maximum losses. Market continued to roll down and suffered lot without any mark of recovery. Investors preferred to be more cautious on the economical growth story. No sign of value buying was seen in whole day. It was a second biggest fall ever at index, ended down by over 5%. As the day progressed, losses mounted at every passing hour till the day ends with Sensex 900 points down. Hike in short term capital gains tax in recent budget resulted in lower participation from the retail investors. There was complete absence of buying witnessed in market. Mid and Small caps had no excuse to closed lower by 4% indicating that selling is not just restricted to frontline stocks. Asian markets closed on weaker trends while Europe also trading in the same waves.

Sensex closed down by 939 points at 16639.539. Weighing on the Sensex are losses in SBI (1923.4,-9 percent), BHEL (2101.25,-8 percent), HDFC (2590,-8 percent), RIL (2304.75,-6 percent) and ICICI Bk (1023,-6 percent). Losses are restricted by gains in HLL (232.1,+2 percent), Cipla (211.45,+2 percent), Hero Honda (775.85,+1 percent), Ranbaxy (450.55,+1 percent) and Maruti (874.3,+1 percent).

On the bad days like this Sun Pharma shined up after the news that gets USFDA nod to market generic Demadex tablets which was much awaited. Demadex, torsemide tablets prescribed for treating edema associated diseases. Torsemide is a diuretic, indicated for the treatment of edema associated with congestive heart failure, renal disease, or hepatic disease. These torsemide tablets have annual sales of approximately 35 million dollars (Rs 139.26 cr) in the US. Use of torsemide tablets has been found to be effective for the treatment of hypertension. Sun Pharma was one among the few stocks ended in green.

Suzlon Energy was on hot targeted stock after company announced a retrofit program to resolve blade-cracking issues discovered during the operations of some of its turbines in the US. The retrofit program involves the structural strengthening of 1,251 (417 sets) blades on S-88 (2.1 MW) turbines of which 930 blades are already installed while the remaining blades are in transit or inventory. The retrofit program will be carried out by maintaining a rolling stock of temporary replacement blades to minimize the downtime for operational turbines and will be completed over a period of six months. The program will utilize its blade manufacturing and service facility for US blades in Pipestone, Minnesota. The total estimated cost of the retrofit program is estimated at Rs 100 cr for which a provision will be made in 4QFY08. Suzlon ended down by 10% following the news.

Technically speaking: Broader markets traded weak in line with the global markets. Sensex made an intraday high at 17228 and low at 16635. On the volume front ended with low participation at Rs 5090 cr. Market breadth was in the hands of Decliners at 2331 against the Advances of 400. At this juncture support is seen at 16450 support and resistance at 17500-17800 levels. Markets look good for selective buying at current levels. Short term traders can buy the index stocks with a holding period of one month.