Market Close: Profit taking with no triggers ahead !

Strong global cues and robust quarterly earning lead the market to start the week on a bullish note. IT, Banking, Metals, Oil & gas and Cement sector stocks bagged the show in the opening trades. Sensex pared some of the gains due to profit booking and slipped into the red as it was unable to sustain at higher levels. Market traded flat on lack of buying interest in the investors. Selling gained momentum in the noon trades and the index traded into the negative zone. Selling was conspicuous as rising rupee concern pinned IT stocks down and the BSE IT Index was down over 40 points. Midcaps and smallcaps did not do a whole lot and ended lower in negative breadth. FMCG and Banking sector ended flat. Both Asian market had a strong start while European markets traded in green

Sensex closed down by 55 points at 13879.25. Weighing on the Sensex were losses in Wipro (554.7,-2 percent), Dr Reddys (703.55,-2 percent), Satyam (460.35,-2 percent), Hindalco (144.95,-2 percent) and Infosys (2038.8,-2 percent). Losses were restricted by gains in Ranbaxy (389.7,+2 percent), RIL (1605.45,+1 percent), Hero Honda (704.3,+1 percent), Bharti Tele (822.65,+1 percent) and ACC (862.4,+0 percent).

The UP election results is what the markets are wary off. It is widely expected that the Congress will not win and that could lead to dilution of sound political decisions. The higher interest rates are biting into the growth and that has really hit badly across sectors. However we expect good news we believe will be on the inflation front. So its mixed and no runaway markets yet and markets will remain ranged.

Autoline Industries today reported its fourth quarter results. The company posted Q4 net profit at Rs 6.76 Cr and net sales at Rs 74 Cr. For FY07 it has reported net profit of Rs 15 Cr versus Rs 5 Cr and net sales of Rs 210 Cr as against Rs 111 Cr in FY06. the result was as per the market expectation. The margins are continuously improving but always get a differential of the earlier quarter as far as price increase in steel are concerned in the first quarter, which is a variable. So it is slightly more in the last quarter always 85% of the company's revenues came via business from Tata Motors for the fourth quarter and FY07. Autoline is in talk with a company called Detroit Engineered Products for 51% stake which is likely to be concluded in the near future. This is purely a design engineering company; they have developed a software tool which reduces designing time of a new vehicle or a new product by 90%. The stock ended up 4%.

The Auto sector ended weak. Decline in Ashok Leyland was despite its robust FY07 numbers. India's second largest manufacturer of commercial vehicles (CVs) reported its 4QFY07 and FY07 results. Riding on the boom in the CV industry the company has reported a 37% YoY rise in topline in FY07 and a marginally lower 35% YoY growth in bottomline. Operating margins were down by 50 basis points. However a more than two fold jump in other income and lower finance charges has helped suppress this slight decline in operating margins. Furthermore, if one excludes the extraordinary items the bottomline vaults by 49%, reflecting the buoyancy in its core operations. Margin pressure has also been faced by the company during 4QFY07 as the bottomline has been able to grow at a slower rate of 29% YoY over a 32% YoY growth in topline. Here again higher other income and lower finance charges have lent the bottomline some support. Ashok Leyland intends to foray into the market for airport passenger buses and has lined up three buses under the brand name Avion. Leyland currently operates airport passenger buses for national carrier Air-India and would sign agreements for similar services with other aircraft carriers this year. The stock ended marginally down.

Rashtriya Chemicals & Fertilizers Ltd (RCF) reported its 4th quarter & year ended March 31, 2007. The Unaudited results for the Quarter ended March 31, 2007: The Company has posted a net profit of Rs 33.31 Cr for the quarter ended March 31, 2007 as compared to Rs 79.72 Cr for the quarter ended March 31, 2006. Total Income (net of excise) has increased from Rs 860 Cr for the quarter ended March 31, 2006 to Rs 949.7 Cr for the quarter ended March 31, 2007. The Audited results for the Year ended March 31, 2007: The Company has posted a net profit of Rs 148.74 Cr for the year ended March 31, 2007 as compared to Rs 147.96 Cr for the year ended March 31, 2006. Total Income (net of excise) has increased from Rs 3114.89 Cr for the year ended March 31, 2006 to Rs 3572.97 Cr for the year ended March 31, 2007.The result beat market expectations and the stock closed up by 5%.

Technically Speaking: It was a down session for the day. Sensex touched intraday high of 14067 and low of 13861 levels. On the higher side resistance is now at 14025, 13935 levels. Support is seen at 13860, 13685 levels. Market turnover was pretty good at Rs 4474 Cr. Overall breadth was in favor of Declines as they stood at 1395 while Advances stood at 1194