Market Close: Nifty kisses new High.. Rally picks Up..

Firm start with significant gains on the back of positive cues from Asian markets. Most of the Asian markets were up except China. There was no sharp rally but market retained its gains. Indices stayed firm at higher levels, as buying continued in index pivotals. Strong set of GDP figures supported the rally in early afternoon trade. Market saw some profit booking little after the mid session but strong buying activity in the final trading hour led the indices to gain the lost momentum and to close high. Buying was seen in Auto, Bank and FMCG while selected stocks in the Software and Telecom sectors witnessed selling pressure. Asian indices ended mixed while European indices are trading up.

The GDP growth was 9.4% in fiscal-year ended March 2007 which is higher than government estimate of 9.2% and the fastest growth in 18 years. Farm sector output in the January-March 2007 quarter grew an annual 3.8%, manufacturing rose by 12.4% and construction 11.2%. Trade, hotels, transport and communications segment recorded a strong 12.4% growth. This is good sign of growth in the economy which eventually helped out market to grow.

Sensex ended up by 133 points at 14544.46. It was helped up by gains in Hero Honda (732.35,+5 percent), HDFC Bk (1139.75,+3 percent), HLL (203.5,+2 percent), HDFC (1870.8,+2 percent) and SBI (1352.4,+2 percent). Restricting the gains were BHEL (1398.9,-49 percent), Guj Ambuja (113.15,-2 percent), NTPC (158.4,-1 percent), Dr Reddys (649.45,-1 percent) and ACC (855.6,-1 percent).

Zee TV cancelled its five-year contract with the Board of Control for Cricket in India (BCCI) following a new law on sports broadcasting putting a question mark on the three-match one-day series between India and South Africa in late June. They have cancelled the deal with the BCCI because of their step motherly treatment towards the company. The cancellation of the five-year deal signed last year and covering only offshore matches worth around Rs 820 Cr comes after the sports channel asked the board for re-negotiation of the price. After the government passed the sports broadcasting signal bill it will suffer huge losses. On the other hand they have been negotiating with Nimbus on this issue as well. So this is clearly a case of step-motherly attitude towards the company. According to the new act on sports broadcasting it is mandatory for every broadcaster to share live feed without advertisements for all ties involving India with national broadcaster Doordarshan. This provide good for the stock as it ended over 3.5%.

Energy sector traded in mixed as the petroleum ministry has projected that gas availability in India is set to more than double (increase by 157%) in the next five years. This could alleviate the plight of major gas consumers in the power, fertiliser and industrial sectors, which face huge losses owing to an over 60% shortfall in gas availability. It is estimated that India would have a surplus of 16.95 mmscmd of gas within two years. Of the total gas supply of 285.42 mmscmd, natural gas produced in India comprises 202.30 mmscmd. The balance is contributed by LNG imports. The significant jump in natural gas supply is mainly due to 80 mmscmd supply from Reliance Industries. RIL's offshore fields in the KG Basin are projected to supply 40 mmscmd from 2008-09. Besides the 40 mmscmd production certified by DGH, RIL's other fields are expected to supply an additional 20 mmscmd in 2009-10, 30 mmscmd in 2010-11 and 40 mmscmd in 2011-12. On this news petroleum companies like HPCL ended up by 2%, RPL and Indraprastha Gas each up 1% featuring among the major gainers.

Tata Tea the Indian tea majors went in for 11% stake in Mount Everst Mineral water which is also a listed company. Mount Everst Mineral water Ltd has its Mineral water Brand Himalaya which is prefered by the Shopping Mall, Multiplexes and Hotels. The Mineral wate company has total reveune of Rs 16 Cr for the FY06. And the company has already made Rs 16.5 Crs for 9 months of FY07. With CMp of Rs 128 the Market capitalisation comes to Rs 370 Cr. Tata tea acquiring 11% Values at Rs 155 Cr seems to be on the higher side. Tata Tea has kept some strategy and has put his hands in this company. Lets wait and watch. Both the stocks ended over 5%.

Technically Speaking: FNO expiry had nothing to upset the market as Sensex rallied. Sensex touched intraday high of 14574 and low of 14449. Resistance lies at 14660, 14730 and Support lies at 14375 levels. Market turnover was pretty good at Rs 4449 Cr. Overall market breadth was in favor of Advances, where the Decliners stood at 1198, Advances were stood at 1381. We about the 14560 levels above this market can see new high. Nifty touched the new high of 4305 levels then slipped to close at 4296.