Market Close: Asian Air blows India off...

Sell off in Asia on fear of rates hike concerns in China its market tumble by 4.5% due to signals of overheating in the economy with Chinese's GDP numbers which was marginally above expectation this lead to tightening in rates. With this extreme negative cue Indian indices slipped to start of in red. Technology and Metal stocks were the hardest hit counters in the opening trade. Market continued to trade in red on account of continuous selling pressure in IT, Capital goods and Auto sector. Buying in Banking and select heavyweights helped the index recover losses made in the earlier session as investors got an opportunity to buying at the lower levels. Indian markets showed some significant recovery to close down by 50 points. Reliance Inds rallied helping Indian Market to recover. Small cap and Midcap stocks were not exceptional today even these stocks saw selling pressure.

Sensex ended down by 52 points at 13620. Weighing on the Sensex were losses in ACC (788,-3.5 percent), Satyam (445.5,-3 percent), Bajaj Auto (2437,-2 percent), HDFC (1560,-2 percent) and BHEL (2499.05,-2 percent). Losses were restricted by gains in ITC (158.7,+1 percent), SBI (1045.5,+1 percent), Guj Ambuja (114,+1 percent), Hero Honda (650.85,+0 percent) and Ranbaxy (341,+0 percent).

Advanta debuted today at Rs 640. Advanta India is an international agronomic seed company with principal operations in India, Australia, Thailand and Argentina, and a subsidiary of United Phosphorus. Advanta had fixed the Issue Price for its initial public offering of 3,380,000 Equity Shares of Rs 10 for cash at a premium that was decided through the 100% Book-Building Process at Rs 640 per equity share. The Price Band for the Issue was fixed between Rs 600 and Rs 650 per equity share. The subscription to the Issue closed on March 30, 2007, and the Issue was subscribed 3.98 times. The Issue received good response from Qualified Institutional Buyers ('QIB') and the QIB portion was subscribed 6.47 times withover 1.31 crore shares bid against reserve portion of 20.28 lakh shares. The stock opens out below the issue price in the opening trade but managed to end up with 33% premium for the first day.

Tyre stocks started rolling and ended in green after India?s largest tyre manufacturer MRF Ltd announced its quarterly numbers today. Net sales for the quarter stood at Rs. 1237 cr against Rs. 995 cr in the same quarter previous year. The topline grew by 23% on yearly comparison. The bottom line of the company stood at Rs. 36 cr against Rs. 6 cr in the same quarter previous year. The EBIDTA margins for the quarter was at Rs. 101 cr up by 85% on yearly basis. Out of the total growth 35% of the growth was contributed because of hike in prices while the remaining was due increase in volume. The rubber prices at present are around Rs 90 per kg and the price of other important inputs are expected to be higher on the back of volatile crude. Company also informed that there are plans to increase prices by 3% to 5% across various product categories in order to maintain bottom line in the coming quarters. MRF ended the 6% higher for the day.

Technically Speaking: Volatile would be the right word to describe the market today. Sensex made an intra day high of 13658 and low of 13423. Overall breadth was in favor of Declines, where the Advances were 1179 against Decliners of 1341. Sensex has closed in the last gap formed between 13400 and 13480, and moved up again. This shows strength and once Sensex moves above 13700, bulls are likely to have an upper hand and could open up the target of 14275. Immediate Resistance lies at 13675 and 13800 levels. Support lies at 13475 and 13400 levels. Market Volumes stood at Rs. 3642 Cr.