Market Close: Recovered after clarity on P-notes..

It was a dramatic day for market and ended with remarkable recovery. The impact of the SEBI regulations regarding the ban of P-Notes to FII's created havoc on the Indian bourses in the morning trades. Heavy selling intensified the market to hit lower circuit and was forced to stop trading for an hour within minutes of opening trades. Support from the Asian counter part failed to have any impact on the Indian indices. Further clarification from the FM and the SEBI chairman regarding the P-notes after the reopening of the session provided guidance for the investors not to be panic. This prompted for value buying which led to the remarkable recovery in the last hour of trading after a steep fall of 1700 points. However, all the major sectors continued to be in the negative territory. The top losers for the day were on the Banking, Reality, Metals and Auto counters. The only exception being the IT stocks which continues to rise because of rupee depreciation. Mid caps failed to attract buyers at the lower levels. European indices continue to trade mixed after a start in green.

The clamp down on the P-Notes was just an attempt to stem the dollar flow which has been coming in quite rapidly. Another issue which came out was unwinding of p-notes to be completed in 18 months. One can guess that the unwinding would be quite disastrous for the markets but if seen in other way this will not be as big a catastrophe as the funds will now get registered with Sebi and the shares from the P-Notes will see an easy transfer. However some funds may lower positions as the tax benefits they were enjoying with P-notes is now blocked. So one can see that the funds will have the inflow but not at the same pace as it was so far from 17K to 19K.

Sensex ended down by 391 points at 18,661 levels. Supporting the indices were gains in TCS (+2.80%), Reliance (+1.88%), Satyam (+1.86%), Infosys (+0.52%) and Wipro (+0.13%). Restricting the gains were the losses in REL (-8.18%), BHEL (5.66%), NTPC (-5.30%), SBI (-5.27%) and ACC (-4.95%).

Mold Tek Technologies Ltd delivered a good set of numbers for the ended of Sept quarter. Mold Tek is one of the leaders in packaging and an emerging player in the Structural Engineering KPO Services segment. Mold Tek managed a growth of 12 % yoy with total turnover of Rs. 28 cr as against Rs. 25 cr during last year. Sales in the Packaging Division rose by 4% from Rs. 22.28 cr to Rs.23.12 cr and that from the IT Division increased from Rs. 4.23 cr to Rs.5 cr with an impressive more than 18% growth sequentially. The overall net profit for the 2Q FY08 registered a growth of 66% from Rs. 2.2 cr of previous year to Rs. 3.7 cr for the current year. The profits from the IT division jumped from Rs. 1.57 cr to Rs. 2.69 cr, thus registering a 71 % growth yoy while profits from Plastic division grew by 55% to Rs 0.99cr. The stock has seen good volumes after long time. We are positive on this one for long term. There could be some triggers from a probable acquisition. The company has been working towards such for some time now. Do read the detailed result analysis of the latest quarter results to know more about the company.

Chennai-based Dhanus Technologies (DTL) got listed in capital market with 1% premium over its issue price of Rs295 amid high volatility at the bourses. DTL came with Public issue of 3835000 equity shares of Rs 10 each. The IPO of the company was subscribed by about 28 times. The company intended to expand its infrastructural facilities and equipment base and would be constructing its new corporate office and network operating centre. Dhanus Technologies offers telecommunication services and unified messaging and enhanced logistics services. The company also has a BPO operation of telemarketing services to the US, UK and Australia markets. The stock ended the day with 5.5% premium against the issue price of Rs 295.

Technically Speaking: Sensex traded between a broad range of 1,300 points and witnessed an intra day high of 18,841 and low of 17,544. Declines outnumbered Advaces in the ratio of 2:1. Volume of Rs10159 cr was churned through out the day. Sensex has given a weak close. The trend remains up untill the close is below 18400.