Market Close: Global massacre intensifies?

It was an extremely bad start to the week. More bad news from the US kept the markets pinned down. The US Fed cut 25 bps today, a day ahead of the Fed meet and market expects another 50-75 bps cut tomorrow. Along with this news from the US investment bank Bear Stearns that has taken a toll on markets all at once. Markets ended hard near lowest point of the day with a sharp cut on account of heavy selling in scrip?s across sectors. India also led the downtrend with losses of over 1000 points followed by Asian peers such as Hang Seng and Shanghai Composite. It was second biggest single day point fall for Sensex ever. Selling pressure continued to keep market head down with no signs of recovery seen till the final hour to end in deep red. Banks topped the laggard down by 9% followed by Realty, Metal index down over 8%. The days low came right towards the end after losses continued to mount with each passing hour. Weak cues from Asia and Europe also kept buying away from market. Asian markets ended in red while Europe follows the global weaker trend.

Sensex ended down by 1020 points at 14740.12. Weighing on the Sensex were losses in Bajaj Auto (661.4,-14 percent), ICICI Bk (757.4,-14 percent), HDFC (2225.55,-11 percent), Hindalco (164.85,-9 percent) and Rel Energy (1190.8,-8 percent). Losses are restricted by gains in .

Apar Industries which is into specialty oil and power conductors reported a long term lubricant supply agreement with Italy's Piaggio. Apar earns around 45% of its revenues from Speciality oil which enjoys good level of margins. Apar will now supply AGIP brand engine oils for Piaggio's entire range of vehicles manufactured in India. The tie-up would generate Rs 75 cr in revenue in the initial contract period. This type of tie ups are significant because India is the largest three wheeler market in the world and Piaggio is the largest three wheeler player in the Indian market. Valuations are fair at the current market price. Future outlook remains promising as the Speciality oil business is expected to do well in near term. One can keep watch here to get in at lower levels. Do have a look at our detailed research note for better understanding.

Gujarat Gas Company Limited (GGCL) primarily engaged in procurement and distribution of natural gas is now focusing on household gas connections. The company has earmarked huge expansion plans same during 2008. The company has planned capital expenditure of Rs 1.2 bn in addition to another Rs 30 cr for network upgradation in 2008. The move is in line with the company's plans to improve its customer mix from low margin bulk business to high margin retail business, which will help the company to maintain its gross gas spreads. The stock traded down 3%.

Technically Speaking: Sensex traded extremely weak for entire day. It made an intraday high of 15,327 and low of 14740. The overall breadth was in favor of Declines while Advances stood at 288 and Declines at 2402. Sensex has made a fresh downward target up to 14400 and 13800. We expect the current downside to get over at 13800. On the higher side, resistance is at 15200.