Market Close: Rally across But Bajaj auto Hammered..

Optimism across the global market kept Indices to trade higher. US rally gave the support across to trade firm. Indian Indices got the boost from the Asian market to close higher. Tech counters bounced back to close higher after a weak play with the news of H1 B visas and appreciating Rupee. SBI continued its upward journey from where it stopped yesterday with the Amendments news. Reliance also rallied with its Gas findings. Buying activity was also witnessed across other sectors like Banks, Cement and Engineering stocks along with small and mid caps. Asian indices ended in green after the Bank of Japan kept interest rates unchanged at 0.5% while the European ones are trading in green.

Sensex ended higher by 172 points at 14299.71. It was helped up by gains in SBI (1328.1,+3 percent), RIL (1684.85,+3 percent), Dr Reddys (677.85,+2 percent), Tata Motors (750.75,+2 percent) and TCS (1248.3,+2 percent). Restricting the gains were Bajaj Auto (2500.3,-7 percent), HLL (195.05,-1 percent), Cipla (208.4,-1 percent).

Bajaj Auto saw a Topline growth of 9% at Rs.2,471 cr against Rs.2,269 cr. The Bottom line for the quarter slipped by 11%. The bottom line for the quarter stood at Rs.308 cr against Rs.347 cr in the same quarter previous year. The reason for the decrease in the bottom line was because of increase in input cost. The passing on of cost on customers was not easy for the company on account of increased competitive pressures. On the yearly basis the top line improved by 25% on consolidated basis. The top line stood at Rs.8,104 cr against Rs.10,119 cr. The bottom line for the year was at Rs.1,248 cr against Rs.1,105 cr. Company also announced its demerger which was keenly awaited by investors. As per the demerger plan Bajaj Auto would be split into two companies Bajaj financial services (BFL) and Bajaj holdings and Investments ltd (BHIL). The Auto business along with its Assets and th Indonesian Business will be transfered to BHIL. And BHIL will alsi include a Total Rs 1500 Cr in cash and cash equivalents. Wind power, insurance and financial services along with the relevant Assets and liabilities and Along with a Total of Rs 800 Cr in cash and cash equivalents would be transfered to BFL. The share holders of the company would be entitled to get 1 share of Rs.5 paid up in Bajaj Financial Services Ltd and 1 share of Rs.10 paid up share in Bajaj holdings and Investments Ltd. The whole restructuring plan is expected to be completed by the end of 2007. At the press meet on the demerger, analyst pointed out that ALLIANZ has a option to raise its stake all the way up to 74% (from the current 24%) at a throwaway price of INR 13.42/ share. This is big negative and the Stock was hit on the back of this news.

Tata Steel ended a percent higher after the results were announced. The bottom line for the quarter was at Rs.1103.50 cr against Rs.783.10 cr, up by 40%. The EBIDTA margin for the quarter stood at 38%. The top line for the quarter was at Rs.4,165 cr against Rs.5,060 cr, up by 21%. The top line for the year on standalone basis stood at Rs.17,986 cr against Rs.15,470 cr witnessing a growth of 16%. The bottom line for the year improved by 20% at Rs.4,222 cr against Rs.3,506 cr.

Balaji Telefilms the leading hindi content provider ended up by 2.3% after it announced its results. The Bottom line for the quarter improved by 37% at Rs.21 cr against Rs.16 cr. The top line for the quarter ended marginally higher by 4% at Rs.82 cr against Rs.78 cr. The top line for the year stood at Rs.327 cr up by 13% from Rs.289 cr. The net profit for the year was at Rs.80 cr. We will update more here in coming days..

Technically Speaking: Sensex traded higher between an intra day high of 14,353 and low of 14,217 levels. The breadth was in favor if advances through out the day before the Bajaj Auto announced its demerger scheme. However, Declines marginally edged the Advanced in the final trading hours. The declines for the day were 1,254 against 1,362 advances. Resistance lies at 14,360-14,410 levels while the support lies at 14,210-14,105 levels. Sensex churned a turnover of Rs.5,715 cr.