Market Close: Deepening weakness

It was an extremely worst day for Indian markets with Sensex breaching the January lows of 15332 and closed at low August 31 2007, Nifty closed at low September 18 2007. Fears of recession in the US kept Asian markets pinned down throughout the day. Hang Seng closed down 4.79%, Nikkei down 3.33% and Shanghai down 2.43%. Nifty ended down 248 points and Sensex down 771 points. Indian market was no different and continued to roll down breaching all the supports and followed by lack of participation which pulled out markets to end lower. Europeans markets also opened in cautions negative zone. Realty and metal stocks saw tremendous amount of selling, along with consumer durables and power stocks. Crude touched $110; trading at all time high is certainly not good for industries like Aviations, Tyres and Cement. Asian market ended the sell off journey in deep red while Europe mirrors the Asian markets.

Sensex closed down 782 points at 15346. The major losers were DLF (-14%), REL (-11%), Tata Steel (-9.45%) and Hindalco (-9.15%). The gainers were Bajaj Auto (+1.31%) and HUL (+0.43%).

Textile firm Alok Industries has picked up a 50% stake in Ashford Infotech Ltd through its wholly owned subsidiary Alok Infrastructure. Ashford Infotech is part of the UK-based Ashford group. Ashford Infotech has recently acquired Ceat Ltd?s 6.92-acre land at Bhandup Mumbai for around Rs 130 crore. Ashford will be developing the land jointly with Alok Industries. Alok also plans to raise Rs 600 cr by diluting a 20% stake in Alok Looking at the infra segment value is still unidentified and will give good valuations. Alok is also setting up a 183 acre textile special economic zone (SEZ) in Silvassa and a 100 acre residential project in Vapi through an equal joint venture with textile and steel pipe group Welspun. The move to set up SEZ is in line with the company's objectives. Infrastructure to a private equity player use money to expand its realty business in the country.

Gujarat Gas Company Ltd (GGCL) is expecting a 10% drop in availability of natural gas from Panna-Mukta-Tapti beginning April. According to industry sources, with no immediate possibility of replenishing the shortfall by LNG, the company?s retail sales may come down accordingly in the April-June quarter. Industry sources said that beginning April, availability of contracted volumes from PMT sources to GGCL may come down from 3.1 million standard cubic metre a day (mmscmd) to 2.8 mmscmd. The shortfall in availability may impact GGCL?s retail supplies on pro-rata basis. The bulk industrial supplies, however, will not be impacted. GGCL has already witnessed 0.8 mmscmd drop in spot supplies from PMT soon after the handover of the marketing rights of PMT gas to GAIL.

Technically Speaking: Sensex traded extremely weak for entire day. It made an intraday high of 15,873 and low of 15,229. The overall breadth was in favor of Declines while Advances stood at 359 and Declines at 2331. Sensex have opened the targets of 13800. Big resistance for any rise is expected at 16000-16050, support lies at 15200 and 15000.