Market Close: Zooming Gains ! Was it global help. ?

After Friday's rally supported by Infosys result and low Inflation numbers which kept the sentiments in upbeat mode for the day as the market opened on a strong note with buying across all sectors like IT, Metals, Cement, Cap goods and etc. Final hours saw some value buying which pushed sensex to close up over 300 points. Tech sector continued to remain to be the centre of the show. After Infosys another technology giant Tata Consultancy services has reported its Q4 earnings today. These are broadly in line and no negative surprises. Midcaps and Small cap also kept the momentum in the market. Asian markets zoomed to close higher while Europe was trading in green.

Dollar slipped below Rs. 42 for first time in 9 years; RBI has probably taken the view that a strong Rupee is good for controlling inflation. This is negative for the software companies and exporters, while seen positive for the importers.

Sensex ended up by 312 points at 13695.58. It was helped up by gains in ACC (786.55,+5 percent), TISCO (533.4,+4 percent), Grasim (2376.8,+4 percent), RCVL (436.8,+4 percent) and ITC (158.65,+4 percent). Restricting the gains were HDFC Bk (971.5,-1 percent), Satyam (479.35,0 percent).

In yet another attempt to salvage the bleeding oil marketing companies, Planning Commission has suggested withdrawal of subsidized LPG cylinders to taxpayers. This means that PSU oil marketing companies would charge full market rate for cooking gas cylinders from income tax paying households. Thus, a LPG cylinder will cost Rs 475 instead of Rs 298 in Mumbai, an increase of Rs 177, which the government makes up to oil marketing companies. The proposal is a step towards easing the government's mounting subsidy burden on keeping price of kitchen fuels low. The subsidy bill on the LPG front is estimated to go up to around Rs 50000 Cr this fiscal. The panel claimed that since the list of taxpayers and cooking gas consumers were computerized, the plan could be implemented as early as June this year. However, as the majority of gas connections are in the name of housewives, most of whom are unlikely to be on the three crore I-T list, the plan will be difficult to implement. Apart from this, political parties are likely to oppose the move. Domestic LPG is one of the four subsidized products sold by the oil marketing companies, which is leading to significant under recoveries to these companies. Expect the profitability of oil-marketing companies is likely to be subdued due to unclear government policies. This sector is best avoided.

Suzlon surged as it signed a contract with Tierra Energy of Austin, Texas, to provide 42 units of the S88-2.1 megawatt (MW) wind turbine for wind power projects in Texas and Wyoming. It will supply 28 wind turbines to the Ocotillo Windpower Project near Big Spring, Texas; and 14 turbines are designated for the Cheyenne, Wyoming-based Happy Jack Windpower Project, Suzlon's first wind power project in Wyoming. Plus, it will oversee operations, maintenance and service (OMS) of the wind turbines for five years. Suzlon is expanding its base in three ways by signing with a new wind partner by extending project locations westward and equally important by working towards project-based financing for Suzlon turbines. Both projects will take delivery of S88 wind turbines in spring 2008. The stock rallied and was up by 6.8% at close.

Technically Speaking: It was a Bull session for the whole day before closing. Sensex touched intraday high of 13708 and low of 13479. Resistance lies at 13780, 13858. Support lies at 13551, 13400. Market turnover stood good at Rs 4091 Cr. Advances Declines Ratio (2.3:1) favored Advances. Expect the market hold the rally and can cross the 14000 benchmarks.