Market Close: Global markets slip and India follows..

Another weak session for the day from start. Global cues were subdued for the day with no support for the Indian Markers. Former Commmented on the overheated the Chinese market which saw weakness across all the Indices. Indian indices started the day in subdued note but in green and lost its strength from beginning of the day. Indices faced intense selling pressure which intensified at the final hpours of trading. Bank stocks ended in red on fears of CRR hike, which we think wont happen. Steel stocks were under pressure because of statement by Steel Minister that companies should not hike prices as of now. Tata Steel was the major looser. The rising Crude impacted Refineries which witnessed profit booking. Heavy selling pressure was seen across the board except the selective stocks in IT, FMCG and Cement ended in green. Selective Mid and Small caps managed to trade up but as of all succumbed to selling. Asian markets ended in red, so do the European markets which are trading in red.

FIIs numbers were positive and that's really a surprise. We believe that this positive numbers were on back of rally in selected counters like Educomp where FII holdings were just about reaching the caution limit of 24% the maximum permissible. We believe that FIIs probably were falling head over heals over each other trying to catch it before it gets into the restricted list. Tomorrow inflation numbers will be declared?very important thing to keep a watch for. Let see how markets pan out.

Sensex closed down by 145 points at 14218.11. Weighing on the Sensex are losses in TISCO (631.6,-4 percent), Rel Energy (551.15,-3 percent), RCVL (493.75,-3 percent), ACC (857.95,-3 percent) and HDFC (1754.95,-3 percent). Losses are restricted by gains in NTPC (162.35,+4 percent), HLL (201.25,+1 percent), Satyam (456,+1 percent), Tata Motors (712,+1 percent) and Infosys (1936.6,+1 percent).

Bharti Airtel has joined the league of top ten global telecom operators with a subscriber base of over 40 mn in a single country. The company has been able to increase its market share by over 2.5% yoy in FY07 on the back of network expansion, better distribution and increased affordability. At a market share of over 23%, Bharti is ahead of its closest rival RCOM by over 9 mn users and over Hutchison Essar (to be renamed Vodafone Essar soon) by 11 mn. It is worth noting that it took Airtel 11 years to reach the 20 mn mark, but just 14 months to add the next 20 mn. According to the company, reduction in recharge voucher denominations over a period of time, lifetime validity schemes and expansion network have helped Bharti to achieve this feat. Telecom stocks ended in mixed. Bharti closed down by 1.8% and its peer RCom ended down by 4%, Tata Tele was down by 0.9%. Idea closed up by 1.64%, MTNL ended in flat.

SAIL board has approved pump in close to Rs 100 bn for the modernization and capacity expansion of its Rourkela Steel Plant. This project will more than double the hot metal production to 4.5 mn tonnes from the current 2 mn tonnes and is expected to be over by 2010. The project would also include setting up of a new blast furnace and reconstructing and upgrading one of the existing ones. Buoyed by a strong steel cycle, the company has reported spectacular results for FY07 and in order to keep the growth engine chugging, it has decided to invest in a big way in new capacities. But the worry is from Govt in pricing decisions. Steel stocks closed in mixed. SAIL closed up by 1.38% and its peer Tata Steel ended down by 4% and JSW Steel closed down by 2%.

ABG Shipyard to acquire Vipul Shipyard. With this acquisition the company would be able to enhance its shipbuilding capacity from the present 32 to 40 vessels on modular basis in future. This is a strategic acquisition for ABG considering the location of Vipul, which is adjacent to the existing shipbuilding facility of ABG at Surat and is a move to augment its resources for further consolidation of shipbuilding capacity in the growing segments of offshore, coastal shipping and other avenues of shipbuilding. ABG Shipyard has signed a Memorandum of Understanding to this effect pursuant to which a large portion of Vipul's land with good waterfront would be added to ABG's resources along with a slipway and other plant and equipment for shipbuilding. Deal amount is undisclosed. The stock closed marginally down.

Technically Speaking: It was a bearish session for the whole day before closing. Sensex touched intraday high of 14389 and low of 14174. Resistance lies at 14326, 14465 and Support lies at 14110 and 14034 levels. Market turnover was pretty good at Rs 4343 cr. Overall breadth was in favor of Declines, where the Advances stood at 1017, Declines stood at 1546.