Market Close: LNT, BHEL..Fuel the rally But..

Subdued start in the Indian indices with little support from the Asian Counters. Markets traded ranged after open in green with profit booking at higher levels. Preceding session continued to be choppy ahead of FNO expiry. Indices continued to gain ground with momentom given by the small caps and mid caps. INdex majors like Cipla, LNT BHEL rallied at the final hours of trading RIL and SBI too helped to push the indices to close high. Selective Buying was witnessed in Cement, Power, Banking and Pharma companies. Volatility in Rupee kept Techies to trade ranged. Adani Exports slipped by 10% after the SEBI banned the promoters for 2 Yrs for their involvement in Ketan Parekh securities scam. Binani cement which got listed yesterday continued to trade at discount and ended lower than its issue price. Cooling Gold prices provided soothing effect in Titan which rallied. Global market trading ranged with most of the European markets trading in red.

Sensex ended up by 110 points at 14508.21. It was helped up by gains in Cipla (218.55,+5 percent), BHEL (2856.2,+5 percent), L & T (1856.5,+4 percent), Ranbaxy (390.45,+2 percent) and RCVL (521.2,+2 percent). Restricting the gains were HDFC (1813.45,-2 percent), Guj Ambuja (114.8,-1 percent), NTPC (160.75,-1 percent), Infosys (1951.6,-1 percent) and ITC (165,-1 percent).

Larsen & Toubro (L&T) ended 3% with its good result news. The net profit for the quarter grew by 50%, while the top line surged by 31%. The Company posted a net profit of Rs.701 cr for the quarter as compared to Rs.467 cr in the same quarter previous year. Total Income increased from Rs.4782 cr in the previous quarter to Rs. 6452 cr in this quarter. The top line on standalone basis grew by 38%.The Company posted a net profit of Rs.1403 cr for the year as compared to Rs.1012 cr in the previous year on standalone basis. Total Income increased from Rs.15199 cr for the year ended March 31, 2006 to Rs 18041 cr for the year ended March 31, 2007, up by 18%. On Consolidated basis Net profits jumped by 70% YoY, from Rs.2240 cr for the year as compared to Rs.1317 cr previous year. The Total Income increased from Rs.17019 cr for the year to Rs. 21342 cr for the year ended March 31, 2007. Order inflow for the year stood at Rs.25,429 cr while the total order book of the company at present is at Rs.35,300 cr. Engineering and Construction segment reported a revenue of Rs.13,400 cr contributing 75% of the top line. LnT with its huge order booked and expertise in its core segments looks good. the stock is trading at new levels Keep a Stoploss of 1725 for Long term if take for delivery from current levels.

Mahindra & Mahindra (M&M) ended 4% higher after its results were announced yesterday. The top line for the quarter improved by 21% at Rs.2,747 cr from Rs.2,288 cr in the same quarter previous year. The bottom line for the quarter stood at Rs.236 cr against Rs.322 cr down by 26% on yearly comparison. The EBIDTA margins for the quarter stood at 8.48%. The sales numbers for the year stood at Rs.10,245 cr against Rs.8,326 cr in the same quarter previous year. The top line for the year improved by 23% YoY. The net profit for the year stood at Rs.1,068 against Rs.857 cr witnessing a growth of 24%. The growth of the company on volume terms improved by 15% in the Automobile segment and 21% in its tractor business. The decline in the bottom line was due to increased input cost which could not be passed on the customer. Company had also launched its new model "Logan" which is being manufactured in partnership with Renault Ltd. The increased advertisement expenses also had an impact in deflating the bottom line. The increased interest rates also had an impact on the company's performance as it acted in halting the sales of its cars. The impact of higher interest rates has had its impact on all the other players in industry.

Greenply has launched 13 laminates categories under their Greenlam range targeting the growing interior infrastructure space. Kenyan raft wood, horizontal hush, horizontal lines, American wall paper, Caravan leather, Quarter cut oak finish, Alluring alligator finish, Techno steel finish, Wacky wicker finish, Fabric (Thai Silk), 3D range, Chic and Teen talk are the new categories that define the shade and texture of the product. Exotic names like Ebony, Samara oak, Candy orange, Divine yellow, Thai fauna silk, Olive chic, Antique oak, Lorriane walnut and many others are available in the price range of Rs 600 to Rs 2,000 a sheet. The products would be marketed through its network of 27 branches and more than 3,700 dealers and stockists across the country. Company is well placed in the industry where 90% of the market is with the unorganized players. Brand name of the company is its key factor for success in the business. Implementation of VAT has been a big positive as it hits the unorganised sector and makes it more competitive. One can accumulate the stock at this level for long term investments. The story is damn good and we are bullish here. We have a note here to and Wowcall ranning here too.

Technically Speaking: Sensex has managd to trade at 14500 levels. As it made an intra day high 14,530 and low of 14,372 levels. The breadth favored Advances as there were 1,352 Advances against 1,240 Declines. The turnover for the day stood at Rs.4,573 cr. Sensex support lies at 14,420-14,250 levels while Resistance lies at 14,530-14,560 levels if managed to open up with a gap above 14530 levels and touches 14560 and sustaince this levels then we could see new Highs..