Close: Nifty hits all time high !

Firm Global markets provided the support for the Indian Markets to open up in green and to trade strong. Nifty hit its all time high during the opening trade with Dabur India emerged with early gains to trade up. Markets traded stable at higher levels with sustained buying in the index heavyweifghts like Reliance and SBI at the start. After paring gains in the mid sessions of trades markets traded within a narrow range as they groped for direction. Reliance Energy, Tata Steel and ONGC lead the rally after the mid session followed by the Index major and Oil pioneer RIL propelled. Metal, Banking, Media and FMCG stocks were among the major gainers. IT and Auto traded weak for the day. Market breadth was extremely positive which helped market display positive movement through the day. Rupee was strong yet again and almost challenged the 9 year high levels yet again.. The software stocks went soft yet again after seeing some value buying in the last couple of days. Cement stocks also saw some level of profit taking ahead of the rainy season. Small-cap and Mid-cap stocks also supported the rally. Asian markets ended in green while European markets were mixed at the time of writing this note.

Sensex ended up by 115 points at 14418.6. It was helped up by gains in Rel Energy (551.7,+8 percent), TISCO (622.9,+5 percent), RIL (1761.55,+4 percent), HDFC Bk (1103.05,+3 percent) and ONGC (933.6,+3 percent). Restricting the gains were Tata Motors (724.7,-2 percent), Wipro (534.75,-2 percent), Bajaj Auto (2248.3999,-2 percent), Satyam (448.2,-2 percent) and TCS (1236.95,-1 percent).

SAIL the Steel major put out Fantastic numbers above market expectations. It reported a jump of 54% net profit to Rs 6261.43 Cr for the year ended March 31, 2007 compared to Rs 4067 Cr for the year ended March 31, 2006 on consolidated basis. According to an official release total income for FY07 stood at Rs 36194 Cr vs Rs 29632 Cr for FY06. For the quarter ended March 31, 2007 the company posted a net profit of Rs 1902 Cr against Rs 1103 Cr for the quarter ended March 31, 2006. Total income surged from Rs 9155 Cr for Q4FY06 to Rs 10624 Cr in Q4FY07. The board of the company has recommended a final dividend @ 15% on paid up equity share capital in addition to the interim dividend @ 16% already paid for FY07, thus taking the total dividend to 31% on paid-up equity share capital subject to approval of shareholders in the AGM. The stock ran up on the news of its results While peers too traded up like Tisco surged by over 5%. There was nothing to hold back the steel majors not even the news that increased Chinese interest rates could slow demand.

Sun Pharma surged on the back of its aquisition news. Sun Pharma is set to acquire Taro Pharmaceuticals, a multinational generic manufacturer. The nature of the deal is an all cash and the size is estimated to be in the region of US$ 454 m (approx Rs 1800 cr). The company intends to fund the acquisition through internal accruals and the proceeds from its US$ 350 m FCCB. Taro has established subsidiaries, manufacturing and products across North America, Canada and Israel with the US being a dominant market accounting for more than 90% of its sales. Its forte includes dermatology and topical products apart from cardio vascular, neuropsychiatric and anti-inflammatory therapeutic categories. This aquisition should help Sun Pharma to strengthen its presence in North America and Canada. Thats a large acquisition.

Anil Ambani Group firm Reliance Capital Ltd (RCL) reported of selling its entire stake in Reliance Energy Ltd (REL) to other promoters in a block deal on the bourses which was valued at Rs 350 Cr. Reliance Capital the financial services arm of ADAG sold over 1.3 Cr shares representing 5.79% stake in Reliance Energy. Reliance Energy ended as the top gainer in the Sensex with 8.5% gains.

Technically Speaking: Sensex traded firm with heavyweights supporting the rally and made an intra day high of 14451 and low of 14385 levels. The breadth favored Advances through out the day where Advancers were 1380 and the Declines were 1225. Resistance for Sensex lies at 14520 levels, while strong support lies at 14380 levels. Sensex churned fabulous turnover of Rs.5559 Cr.