Market Close: Volatile FNO closing as expected !

Markets closed with modest gains after a volatile session all day. Not much support was seen from the global cues as the Asian markets closed mixed after starting in green. As a result of FNO expiry Indian indices had a rough session. Indices started on a firm note. The market saw healthy rollover of derivative positions from the July 2007 series to the August 2007 series. Selling pressure kept the indices in negative in the the mid session. Indices surged in the late session with buying in select index heavy weights. The market turnover hit a record high for the third day at Rs 1 lak cr. Except Banking, Capital Goods and Metals most sectors closed in green. IT, Realty, Auto and Health Care stocks outperformed the day. Mid caps ended inline with the front line indices but the small caps had something to cheer for the day. Ranbaxy was the star performer for the day as a result of settlement of a patent issue.

Sensex closed up 77 points at 15776.31 helped up by gains in Ranbaxy (373.4,+9 percent), Cipla (193.55,+4 percent), Maruti (841,+4 percent), TCS (1185.3,+3 percent) and HDFC (2021.35,+3 percent). Restricting the gains are ACC (1021.65,-5 percent), Guj Ambuja (124.7,-3 percent), Bharti Tele (925.25,-2 percent), BHEL (1755.2,-2 percent) and HDFC Bk (1219.05,-2 percent).
ABG is one of the largest private sector ship building manufacturering capability of marine ships including Bulk carriers, Deck barges, Interceptor boats, Anchor handling supply ships, Diving support ships, Tugs and Offshore vessels. ABG reported a good numbers. Revenues grew by 23% to Rs 203 cr on yoy basis led by the capacity expansion undertaken at the Surat facility. Ebidta margins for the quarter remained flat at 27% Bottomline was up 24% to Rs 33 cr yoy/. At the current market price Rs 537 the stock trades at 22 times of trailing earnings. The outstanding order book stood at Rs 5560 cr. Expect an updated research note. on this one.

Maruti Udyog reported good numbers with Income up 27% to Rs 4154 cr. The net profit was up 35% at Rs 499 cr vs Rs 370 cr. Despite the slowdown in Auto sector the company has reported good results. Competition continues to threaten. All companies are now launching new models and offering discounts too which could pressure margins. Auto stocks closed strong for the day, Maruti closed up by 3.75%, M&M ended up by 2.55% and Tata Motors closed marginally down.

Technically Speaking: Market saw volatile sessions throught out the day but finally closed in the green territory. Sensex touched intraday high of 15812 and low of 15654. Market turnover was good as it churned out Rs 5719 cr. Overall breadth was in favor of Advances, where the Advances to Declines ratio stood at 1.5:1. Sensex has closed the third consecutive day without any direction. The Open and the Close has almost been the same. Such indecision will be resolved when the Sensex moves either above 15860 or breaks below 15575. Trade in the direction of the breakout.