Market Close: Mild recovery after steep fall!

A ranged bound trading as indices traded much of its time in green. After witnessing selling for last few sessions, markets recovered marginally and ended in gains. Global markets provided strong cues as Asian markets closed higher and European markets are trading in green. Despite negative start, indices recovered in early trades continued its uptrend. Markets witnessed a volatile trade, in mid session some level of profit booking pushed up the indices. Value buying at lows helped the recovery and ended with moderate gains. Except selective stocks in IT most of the sectors ended in green. Realty, Power, Capital Goods, Cement and Oil & Gas cheered the day. Even the mid and small caps outperformed the front line indices.

Sensex closed up by 199 points at 16,123. It was helped by gains in DLF (+10.83%), L&T (+6.81%), ACC (+5.27%) and Ranbaxy (+4.72%). The major losers were Maruti (-4.30%), HDFC (-2.72%), Wipro (-2.65%), Satyam (-2.63%) and Cipla (-2.44%).

Apollo Tyres plans to establish a green field plant in Hungary with an investment of Euro 200 million. The company is expecting to get clearances from the government within the next eight months and will start the civil work this year. The proposed plant would have a production capacity of 25,000 units per month. Further, unveiling its future plan, it also plans to increase its domestic tyre manufacturing capacity from 15,000 units a day to 45,000 units a day. The company plans to increase the capacity of Baroda plant from 10,000 units a day to 15,000 units a day, which will attract an investment of Rs 1.50 billion. The worry is increasing rubber and crude prices hitting margins of the company. Even cheap imports and slowdown in autos putting pressure on revenues.

Hyundai Motor India (HMIL) has received 60,000 export orders for its small car i10, which was launched in October 2007. HMIL started accepting export orders for the i10 from December 2007, and received 60,000 orders from the overseas market creating a record of clocking the fastest 50,000 units of export orders in just three months. The company would ship around 26,000 units by March 2008, and the car would be exported to all the major markets across the globe covering over 90 countries by the end of the year. The i10, manufactured at the Chennai plant, made its debut in Europe at the Bologna Motor Show, Italy, in December last year, and was also displayed at the Geneva Motor Show in January. India is now become the hub for car manufacturing as Car manufacturing companies are setting up its plant here. This has brought in competition in the Domestic market which is negative for Indian car majors like Maruti, Tata and others. The performance of i10 is good and is doing extremely well in domestic market too. The higher interest rates will put pressure on company's revenues. Maruti ended down 4.3% and Tata Motors ended down 2.36%.

Technically Speaking: Sensex traded in range of 200 odd points. It made an intraday high of 16,168 and low of 15,739. Overall breadth was in favor of Advances, while Advances stood at 2079 and Declines at 634. Sensex as we noted a double bottom yesterday, we could see some good buying take place today across the board. Resistance for tomorrow at 16300-16400, support at 15900-15800.