Market Close: Worries continue..but 18k achieved !

The impact of political uncertainties was witnessed in the initial trading sessions. Global cues were nothing to settle on. However, Investors were back in action as soon as the meeting between the left and ruling party postponed to October 22nd and index crossed 18k. Rally was led by index heavy weights but mid caps and small caps gained momentum later. Full support from the traders made sure that Sensex sustains above 18,000. The gainers in the last leg of the march towards 18,000 were on the Oil &Gas, Reality, Technology and consumer goods counters. European market was in green.

The journey from 17,000 to 18,000 was covered in just 8 days. The major contributors for the rally were RIL, Infosys, REL, L&T, Rcom. FII?s pumped in $ 2.54 billion to be a part of the rally from 17k to 18k.

Sensex closed higher by 887 points at 18310.24. It was helped up by gains in RCVL (713.9,+13 percent), Rel Energy (1542,+13 percent), RIL (2612,+9 percent), Maruti (1107,+9 percent) and NTPC (218.65,+7 percent).

Rajesh exports reported a good set of numbers for the September ended quarter. The top line grew by 19% at Rs 2,044 cr. The Net profit margins improved by 200 bps at 3%. Net profit stood at Rs.54 cr. Exports contributed 93% of the revenues. The stock trades at 26 times its earnings. The order book stands at Rs 1,526 crore. The stock closed higher by 2%. Gems and jewellery business is doing well in India. However, high working capital nature of this business takes away the cream. Gitanjali is another player in this segment which we have covered in our research. Do read our note to know more.

Leading plastic water tanks maker Sintex Industries registered a substantial jump of 43 % in net profits for the quarter ended September 2007 helped by strong sales volume and improved operating margin. During the quarter the company saw a rise in profits to Rs 45 Cr as against Rs 31 Cr in the same quarter consolidated last year. The net sales for the quarter climbed by 46% to Rs 389 Cr when compared with the corresponding quarter a year ago. The operating margins increased to 20% during the quarter a rise of 300 basis points compared with the corresponding quarter a year ago. It has even heads in textile division which manufactures poplin, coats, polyester shirting, sarees, dhoties, corduroy cloth and other fashion fabrics. The company?s plastic division is its mainstay contributing 72% of the total turnover. SIL has globally competitive position with leadership position across all categories in water tanks, pre-fabricated structures, interior products and industrial products. Its plastic products are well known by the Sintex brand. The stock traded marginally down.

Technically Speaking: Sensex opened gap down with 100 odd points but rallied over 1000 points for the day from days low. Sensex witnessed an intra day high of 18,327 and low of 17,287. Advances out numbered declines in the ratio of 2:1. Volume for the day stood at 7,793 cr. Sensex has nearly reached our targets of 18500. Traders can look to book their gains and wait for the markets to correct.