Market Close: is this the sign of Decoupling?

A Bounce back in the market at the mid session after a weak start. Indices managed to gain some mometum due to buying in heavyweights. Advance tax numbers had little to support the market as some level of interest was seen in stocks which tumbled in last few sessions. Markets traded choppy there on, Indices rallied over 300 points but final hours of trade witnessed profit booking which pulled the Sensex down to end flat. Small caps and Mid caps took the hit while large caps managed to survive. Realty, Power and IT stocks saw interest while Banking, Metals and Oil & Gas were among losers. Asian indices ended in green. While European indices are trading positive.

Sensex closed down by 10 points at 14799.91. Weighing on the Sensex were losses in Bajaj Auto (632.65,-4 percent), TISCO (639.25,-3 percent), SBI (1592.2,-3 percent), Hindalco (161.55,-2 percent) and Infosys (1313.1,-2 percent). Losses were restricted by gains in HLL (231.05,+4 percent), Ranbaxy (452.85,+3 percent), TCS (817.3,+3 percent), Rel Energy (1227.65,+3 percent) and RCVL (497.4,+3 percent).

Unitech gained 5% and seems good in the Realty Sector. Unitech is one of India's largest and diversified real estate developers with an emerging pan-India presence. It enjoys leadership in markets of NCR National Capital Region and Kolkata. Unitech?s core strengths of land acquisition, reputation in building townships and relationships with governments and customers have enabled it to build a diversified portfolio. Unitech has a diversified land bank of 13,758 acres with a total saleable area of ~689m sq ft . Apart from aggressively launching and selling residential and commercial projects, Unitech has extensively widened its business scope by initiating forays into retail, hospitality, entertainment and SEZs. In addition, it also has a small presence in power transmission, prefabricated construction and ready mix concrete. Unitech land acquisition cost is approximately around Rs 200 per sq.ft . This gives Unitech a major advantage as it has a robust land bank and that too at a very attractive rate. The value of land has appreciated manifolds in recent times.Unitech participates only in tenders and not in auction?s . In last 12 months it has participated in 5-6 tenders and has won all of them. This shows Unitech?s strength , aggressive and planning. Valuations carry no meaning given that earnings in real estate can be lumpy. Best valuation parameters are based on the value of Unitech's land bank and to add to that the profitability of the future. We are positive on Unitech among the Real estate players. Do read our note to know more. Reality stocks rallied for the day with DLF up by 4.5%.

Larson and Tubro's heavy engineering division bagged a contract valued at Euro 28 mn for supplying the coal gasifier and syngas cooler assembly to Hebi Coal and Electricity, a subsidiary of Zhongyuan Coal Chemical Industry Group, China. The structure, which is expected to weigh 1,740 MT, will be the world's largest and heaviest gasifier assembly and will form the heart of a methanol plant with a capacity of 600,000 tonnes per annum. The equipment will be manufactured from advanced technology steels at L&T's manufacturing facilities at Powai & Hazira. The Hazira facilities are situated on the waterfront with easy access to the sea for ease of shipment. The order backlog for the E&C segment stood at Rs 47600 cr, almost 3.5 times the segment's FY07 revenues. Difficult to comment here but the stock ended higher by 3%, while BHEL jumped higher by 4%.

Technically Speaking : Market could sustain the above 15000 levels as Sensex made an intra day high of 15165 and low of 14677. The breadth was in favor of Declines, as there were 748 Advances against 1925 Declines. Market turnover was a decent at Rs 6926crs. Sensex did our target given in midmarket. Sensex support stands at 14700, below 14700 sensex may fall upto 14400. Resistance lies at 15200.