Result Updates - July 31 2007

BHEL: Misses expectations led by sharp yoy margins decline

Indian Oil Corporation: Good 1QFY08 results despite nil oil bonds; Retain IL

Mahindra & Mahindra: 1QFY08 net profit declines 6% yoy

Sun TV: Strong 1QFY08 results; fine-tuned estimates; Retain U on rich valuations

Jindal Steel & Power: Volumes drive earnings; maintain OP

Asian Paints: Robust growth in domestic as well as international operations, retain In Line

Great Eastern Shipping Company: Strong operating performance; raise target price, maintain In-line rating

Maharashtra Seamless: 1QFY08 results: Feeling the rupee brunt; maintain rating, raise TP

Andhra Bank: NII disappoints, lower provisions and higher non-interest income drive profits

Kalpataru Power Transmission: 1QFY08 result update: Inline with estimates; maintain rating, raise TP

Educomp Solutions: Better-than-expected results; raise target to Rs2,650

Nagarjuna Construction: Strong operating margin expansion possibly led by shift of execution towards more profitable segments helps meet expectations

Motherson Sumi Systems: 1QFY08 net profit declines 11% yoy

Monnet Ispat: 1QFY08 results: Strong growth in revenue and earnings; maintain OP, raise TP

Jyoti Structures: 1QFY08 result update: Inline with estimates; raise TP

Updates

Bank of Baroda: Solid operational performance

Result Updates - July 31 2007

Intraday Stock Ideas

NIFTY (4440) Supp 4411 RES 4470

Buy Gateway Distriparks (184) SL 180 Target 191, 194

Buy HCC (132) SL 128
Target 139, 141

Buy Crompton Greaves (273) SL 269 Target 281, 283

Sell IOC (395) SL 400
Target 386, 383

Sell Reliance Capital (1171) SL 1179 Target 1153, 1149

Bulls expect credit from policy

It is only the poor who pay cash, and that not from virtue, but because they are refused credit.

It wasn't just another Manic Monday as most people had expected. The bulls survived a volatile start to the week, thanks largely to the rebound in Asian markets as nagging fears related to the US credit market ebbed. A few index bellwethers such as HUL and SBI helped prop up the main indices.

Banking stocks had a field day amid growing expectations that the RBI won't hike its key short-term lending rates in its first quarter review today. However, some steps are in the offing to contain the relentless inflow of foreign money.

This morning, global indicators are much more encouraging, though oil prices are still a cause for concern. We expect a higher opening given the improvement in the sentiment across global markets. But, the volatility will continue and some more pain may be left in the near-term. As a result, aggressive buying should be avoided at this stage, especially if it is for the short term. Long-term investors should buy fundamentally strong scrips at dips regardless of the market cap. A stock specific approach is the right way to deal with the current uncertainty.

Whatever the outcome of the policy, it's not worth borrowing much to buy in these markets. So stay less leveraged and ride the tide if any in the short term.

Tata Steel may be in action as the company has decided to raise its contribution (including that of Tata Steel Asia) from US$6.7bn to US$7.4bn. Reliance Industries will remain in the thick of action amid lots of news on the company in the newspapers.

Speciality steel maker Mukand may attract some attention as a financial daily reports that the Bajaj Group firm may offer equity stake to auto component manufacturer, Bosch India. Tata Tea could gain amid reports of a price hike in the mid to premium segment.

Hindalco's Board will consider a Scheme of Arrangement with Indian Aluminium Company. Lots of result-oriented action will also be seen as the earnings season approaches its end.

US stocks rebounded from the worst two-day fall since 2003 after Wall Street's biggest securities firms, led by Citigroup, Goldman Sachs and Bank of America asked investors to buy banks, homebuilders and retailers.

The Standard & Poor's 500 Index added 14.96 points, or 1%, to 1473.91. The Dow Jones Industrial Average rallied 92.84 points, or 0.7%, to 13,358.31. The Nasdaq Composite Index rose 21.04 points, or 0.8%, to 2583.28.

US stocks struggled at the start of the session, but moved higher after recent fears about the housing and credit markets subsided. Market breadth was positive.

The Chicago Board Options Exchange's Volatility Index (VIX), an indicator of market volatility that traders follow, fell nearly 13% after closing at its highest level in more than four years on Friday. The VIX and the market tend to move in opposite directions.

Treasury prices fell, lifting the yield on the 10-year note to 4.80% from the 4.77% level reached after bonds rallied Friday in reaction to the selloff in equities.

Oil prices fell with US light crude for September easing 22 cents to $76.80 a barrel on the New York Mercantile Exchange. The front-month contract was quoting 15 cents lower at $76.58 a barrel.

The dollar was lower against the euro and gained versus the yen. COMEX gold for December gained $4.30 to $676.60 an ounce.

European shares traded in a tight range in a volatile session. The pan-European Dow Jones Stoxx 600 index inched 0.1% lower at 372.48. The German DAX 30 closed up 0.1% at 7,456.31, while the French CAC-40 hovered close to the unchanged line at 5,646.36 and the UK's FTSE 100 slipped 0.2% late in the session to 6,206.10.

In Brazil, the benchmark Ibovespa stock index closed 3.1% higher at 54,572.61, up from Friday's close at 52,922, as local blue-chip shares gained. In Mexico City, the IPC index of the 35 most-traded shares rose 2.2%, or 666 points, to close at 30,900.68, after falling 5.3% last week. The RTS index in Russia fell 0.3% to 1961.

Barring Japan, most Asian markets were trading mostly higher this morning. The Nikkei in Tokyo was down 38 points at 17,251 while the Hang Seng in Hong Kong surged 244 points to 22,984. The Straits Times in Singapore rose 28 points to 3555 and the Kospi in Seoul climbed 15 points to 1921.

A volatile trading session ended on a flat note as bulls were unable to sustain their gains. Benchmark Sensex index gyrated over 200points and NSE Nifty over 50points. After opening with a negative bias, markets bounced back as Asian markets recovered to close in positive terrain lifting the benchmark Sensex to hit an intra-day high of 15451. However, selling pressure in the heavyweights like RIL, ITC, Infosys and TCS dragged the key indices lower from their days high.

Finally, BSE 30-share Sensex gained 26 points to close at 15260. NSE-50 Nifty closed flat at 4440.

Bajaj Auto ended lower by 1% to Rs2294. The company announced that they were in talks to build vehicles in India with Renault SA. The scrip touched an intra-day high of Rs2345 and a low of Rs2250 and recorded volumes of over 20,00,000 shares on NSE.

HUL surged by over 6.5% to Rs208 after the company posted a 29% gain in Q2 profit. Net income rose to Rs4.93bn from Rs3.8bn, a year earlier. Sales rose 13% to Rs34.8bn. The board also has approved the company's first share-buyback program; it would offer Rs230 a share to buy back its stock. The scrip touched an intra-day high of Rs212 and a low of Rs202 and recorded volumes of over 62,00,000 shares on NSE.

Reliance Industries was down by 1% to Rs1848. The company posted a 28% growth in Q1 profit, beating estimates. Net income rose to Rs32.6bn. According to reports the company may scrap its $5.2bn project to extract natural gas from the nation's east coast because of a government delay in approving the price at which the company can sell the product. The scrip touched an intra-day high of Rs1898 and a low of Rs1840 and recorded volumes of 27,00,000 over shares on NSE.

SBI spurred by over 5.5% to Rs1578 as the nation's biggest lender profits beat estimates. The company’s Q1 net profit surged more- than-expected. Net income surged to Rs14.3bn gaining 78%. Revenue rose by 27.7% to Rs122.3bn. The scrip touched an intra-day high of Rs1614 and a low of Rs1509 and recorded volumes of over 25,00,000 shares on NSE.

Grasim advanced by 3% to Rs2945 after India's third-biggest cement maker, posted a better-than-expected Q1 profit which gained 54%. Net income rose to Rs6.7bn beating analyst estimates. Sales rose 26% to Rs40.63bn. The scrip touched an intra-day high of Rs2979 and a low of Rs2812 and recorded volumes of over 1,00,000 shares on NSE.

Tata Steel pared its gains as the scrip lost 1.3% to Rs643. The company declared its Q1 result with net profit at Rs12.22bn (up 28%) and net sales at Rs41.97bn (up 7.6%). The scrip touched an intra-day high of Rs675 and a low of Rs635 and recorded volumes of over 32,00,000 shares on NSE.

Banking stocks gained momentum ahead of the RBI meet on Credit Policy. ICICI Bank advanced by 1% to Rs923. Andhra Bank, Bank of India and Syndicate Bank were the major gainers among the Mid-Cap stocks.

NTPC gained by 1%t o Rs163 after India's biggest power producer, signed an agreement with Nigeria to source about 3mn metric tons of liquefied natural gas a year. The scrip touched an intra-day high of Rs163 and a low of Rs160 and recorded volumes of over 33,00,000 shares on NSE.

Cement stocks were in momentum led by gains in the frontline stock Ambuja Cement as the scrip surged by over 3.5% to Rs129; JP Associates was up by over 3% to Rs808 and Shree Cement advanced by 2.1% to Rs1243.

Metal stocks lost their shine. Nalco plunged by over 10% to Rs255 after the company’s Q1 profit at Rs4.47bn (down 28%) and net sales at Rs11.65bn (down 21.6%), Hindalco was down by 4.2% to Rs165 and SAIL slipped 1.3% to Rs146.

Power stocks were in action led by gains in frontline stock, REL advanced by 2.2% to Rs779 after the company won the bid for Sasan project, Tata Power spurred by over 2.5% to Rs721 and NTPC added 1.2% to Rs163. However, Suzlon lost by over 4% to Rs1251.

Results Today:

Aurobindo Pharma, Bajaj Hindusthan, BEL, Bombay Rayon Fashions, Cadila, Cinemax, FT, Fortis Healthcare, Gammon India, Godrej Consumer, Hindalco, HT Media, Indian Hotels, IVRCL Infrastructures, Kesoram, MICO, Nestle India, RCOM, SCI and Videocon Industries.

Fund Activity:

FIIs were net sellers of Rs11.17bn (provisional) in the cash segment on Monday. On the other hand, local institutions were net buyers at Rs8.54bn. In the F&O segment, FIIs were net sellers at Rs630.5mn.

On Friday, FIIs pulled out Rs12.22bn from the cash segment. Mutual Funds were net buyers of Rs2.52bn.

Major bulk Deals:

Barclays Capital has bought Alok Industries; Merrill Lynch has purchased Fact Enterprises while selling Goldstone Technologies.

Lower Circuit:

Anant Raj Industries and BF Utilities.

Upper Circuit:

United Breweries, Bartronics, Ganesh Forgings, Jai Corp, Jaybharat Textiles, Raj Tele, Genus Overseas and Kalindi Rail.

Delivery Delight (Rising Price & Rising Delivery):

BILT, Cipla, Colgate, Dabur India, GAIL, HCC, Kesoram and SREI Infrastructure.

Abnormal Delivery:

Orchid, Gammon, McDowell, Amtek Auto, CEAT and United Phosphorous.

Major News & Announcements:

Punj Lloyd ventures into integrated drilling services

Jet Airways Q1 profit at Rs308.8mn against loss of Rs449.8mn and revenue at Rs18.07bn (up 11%)

Ranbaxy to sell Authorized Version of Generic Isoptin in US

Tata Steel Q1 profit at Rs12.22bn (up 28%); net sales at Rs41.97bn (up 7.6%)

BHEL Q1 net profit at Rs2.89bn (up 22%), revenue at Rs34.4bn (up 23.7%)

BEML Q1 profit at Rs235.9mn (up 57%) and net sales at Rs3.93bn (up 17.3%)

Swaraj Mazda Board to consider right issue on August 27th

GE Shipping Q1 profit at Rs4.21bn (up 74%) and net sales at Rs8.7bn (up 59%)

REL wins bid for Sasan power project

Vijaya Bank Q1 profit at Rs1.11bn (up 54%), revenue at Rs9.67bn (up 38.9%)

IOC Q1 profit at Rs14.68bn (down 17.5%) and net sales at Rs528.62bn (up 8.5%)

Elecon Engineering secures Rs3.78bn order

I-flex Q1 group profit at Rs367mn (up 4.5%), revenue at Rs5.13bn (up 27%)

JSW Steel to buy steel plate mill in its first US acquisition

M&M Q1 profit at Rs1.91bn (down 6%), net sales at Rs26.13bn (up 16.8%).

Daily Technicals - July 31 2007

Daily Technicals - July 31 2007

Bulls back in action in a volatile US Market

Boeing and General Motors together with financial stocks help in turning around investor sentiments

US Market succeeded in getting back some of its confidence today, Monday, 30 July, 2007 after suffering its worst weekly loss in four years last week. Bulls were back in action today after Financial sector, which was worst hit last week, provided bulk of support today. The Dow, S&P 500, and Nasdaq had plunged 4.6% on average last week on problems related to credit crunch and housing sector.

A sense that such a sizable sell-off was overdone last week prompted some bargain-hunting interest today. But after some volatility and initial few hiccups, a surprise upgrade on Morgan Stanley�s credit rating, was the initial catalyst restoring confidence on Wall Street.

The Dow Jones Industrials Average today rose by 92.84 points to close at 13358.31. Tech heavy Nasdaq rose 21.04 points to close at 2583.28. S&P 500 added 14.96 points to its kitty to close at 1473.91.

Twenty-four out of the thirty Dow stocks closed in green today. General Motors, Home Depot, Boeing and Caterpillar headed the list of the Dow winners. Verizon and IBM were a couple of the Dow laggards.

Boeing was up almost 2% today after the company raised its estimate of the potential for airliner sales in India and said it sees India orders reaching $86 bln over the next 20 years. It accounted for almost 17 points in Dow�s gains.

All investment banking stocks close higher

After opening modestly higher across the board, stocks turned negative as investors thought that a possible credit crunch will substantially slow the record pace of M&A activity.

The absence of leadership from the next two most influential sectors - Technology and Health Care also contributed to the market's lack of direction.

But Standard & Poor's upgrade of Morgan Stanley helped investment banking stocks considerably today. Morgan Stanley, together with competitors Goldman Sachs, Merrill Lynch, Lehman Brothers, Bear Stearns closed higher today.

A turnaround in the Financial sector, despite a modest increase in bond yield, had the most noticeable impact on the market's improved stance today. JP Morgan and Citigroup also closed higher.

GM, the main Dow winner today, to announce earnings tomorrow

Crude oil futures registered modest loss today and closed below $77/bbl after crossing $77/bbl during intra day trading hours. Prices fell on speculation that U.S. fuel stockpiles increased last week. Crude-oil futures for light sweet crude for September delivery closed at $76.83/barrel (lower by $0.19/barrel or 0.25%) on the New York Mercantile Exchange.

On the NYSE, advancing issues topped those declining by nearly 2 to 1, and 17 to 13 on the Nasdaq. More than 2 billion shares were traded on the NYSE, while 2.3 billion were exchanged on the Nasdaq.

A host of economic data will set the tone of trading for tomorrow. Personal Income, Spending, and the Core PCE Price Index are to be released tomorrow. Also garnering notable attention will be the Q2 Employment Cost Index. That will be followed by Chicago PMI at 9:45 ET and Construction Spending and Consumer Confidence at 10:00 ET.

Among earnings reports expected tomorrow, Dow component General Motors is the most important name among a host of other names.

Taj GVK, Subex Azure, Marico, Glaxo

Taj GVK Q1FY08 Result Update (Buy)Subex Azure Q1FY08 Result Update (Buy)

Marico Q1FY08 Result Update (Buy)GlaxoSmithkline Pharmaceutical Q2CY07 Result Update (Hold)

Eveninger - July 30 2007

Eveninger - July 30 2007

Reliance Q1FY08 Result Update (Accumulate)

Reliance Q1FY08 Result Update (Accumulate)

SAIL Q1FY08 Result Update (Accumulate)

SAIL Q1FY08 Result Update (Accumulate)

Foreign investors line up with big money

Foreign investors are once again queuing up to pour money into India’s red hot property market, with the government relaxing some of the norms. At least half-a-dozen deals worth $1billion are being finalised by Citigroup, Deutsche Bank, The Carlyle Group and Blackstone, among others, with unlisted real estate companies, as pre-initial public offering (IPO) placement.

A clarification issued by the department of industrial policy & promotion (DIPP), under the ministry of commerce and industry, has cleared the air for investments by foreign institutional investors (FIIs), foreign venture capital funds (VCFs) and private equity players.

FII investments in companies pre-IPO will be treated as foreign direct investment (FDI), as per the clarification, and the investment will have to be channelled for FDI-compliant greenfield projects only.

This has settled the differences arising from views aired by the finance and commerce ministries, and financial sector regulators. Now foreign investors will have to wait three years before exiting the company completely. DIPP has clarified that the investor will have to lock in a minimum of $5 million, in case of a joint venture with an Indian real estate player, or $10 million, in case of a wholly-owned subsidiary of a foreign investor.

The existing rules for foreign investors regarding the lock-in period is applicable for real estate sector as well. Hence, investments by FIIs, foreign VCFs and PE investors will have a minimum lock-in period of one year, if the investment occurred during the preceding 12 months before the IPO date.

This has paved way for a large number of foreign investments at the entity level. This is a complete departure from the past, when equity investments used to be all project-specific. Industry officials said leading property players are sewing up equity deals at the entity level, with greater clarity in foreign investments in the sector.

A majority of real estate companies planning an IPO are currently in talks with foreign investors. The leading players planning an IPO are Hiranandanis, Lodha Developers, Runwal group, Kolte Patil Developers and Paranjpe Schemes (Construction). “There used to be some kind of confusion in the market as far as FIIs’ pre-IPO investments in real estate companies are concerned.

With the clarification issued by the government, foreign VCFs and PE funds can now invest in the real estate firms with a lock-in period of minimum one year. It will definitely boost investments in the sector,” said Akhil Hirani, managing partner of Majmudar & Co.

According to investment bankers, the change in rules would pre-empt any further speculation in the real estate market, and that FIIs would not be allowed to cash in immediately in the IPO.

Earlier, DIPP and the stock market regulator Sebi were not in favour of a lock-in period and had instead suggested pre-IPO placements by FIIs be considered as portfolio investments. However, the recommendation was not accepted by the finance ministry, which, in turn, asked Sebi to put in place the lock-in on FII investments in real estate.

Leading real estate players, eager to cash in on investors’ appetite for realty stocks, were seeking FDI status for their pre-offer placement since many of their existing projects were not meeting the tough FDI norms. For instance, a project needs to be at least 25 acres to be notified FDI-compliant.

Insanity out, anxiety in

The International Monetary Fund (IMF) updated its forecast for global growth this year and next. It projects growth at 5.2% for both these years. This is an impressive number and hence runs the risk of being spectacularly wrong, particularly for 2008. Further, financial market action last week suggests that the forecast upgrade could not have been more ill-timed.
Stocks in the US declined by 2-3% on Thursday and most Asian markets, including India, responded in sympathy on Friday. Many expected US stocks to recover on Friday. They did not. That would have caused some nerves to fray. The questions are how long will this run and how deep would the correction be.
Investors might find it injurious to their financial health to draw solace from the sunny answers of most investment strategists on Wall Street. They did not warn us on the spillover from US mortgage borrowers, lenders, brokers to securitized products, to leveraged buyouts, to credit markets and to Wall Street banks and brokers. Investors would look for clues in fundamentals to decide if this would last or prove to be shortlived.
They would then turn to forecasts such as the one that IMF made recently, the strength of corporate balance sheets, growth rates in most emerging economies, and to what they see as reasonable valuations in many stock markets. In doing so, they would be committing a mistake. The rally of the last five years was not about fundamentals, but about a rose-tinted view of the economic fundamentals of most countries in the world and abundance of liquidity provided by banks to hedge funds, hedge funds to private equity managers, banks to private equity managers and now sovereign wealth funds—funds set up to manage the foreign exchange reserves - investing in risky assets.
A friend who co-manages a hedge fund incubator, while demurring at my sober outlook for global asset markets in the coming years, did admit that banks were ready to provide leverage to the extent of 49 times and, in some cases, even 99 times to start-up hedge funds with no track record either in investment performance or in risk management. That sums up the problems with global finance. It has been all about returns, nothing about risk.
Some segments of this assembly line of liquidity are now shutting down. Readers should appreciate that this assembly line was lubricated with multiple layers of leverage. A hedge fund uses leverage as mentioned above to buy assets. Securities packaged out of mortgages are leveraged and they are repackaged further. Hedge funds buy the lower-rated tranches of these double-packaged debt securities. Some hedge fund investors, too, are leveraged. Hence, a decline in asset value is like a spark that runs through the wires to the final explosive quickly. Here, the leveraged funds explode rather quickly and that hurts a lot of investors because they have used debt and quickly face margin calls. Credit tightens or seizes up at many levels.
That is the difference between 2006 summer and now. The correction then was triggered by cyclical tightening concerns. Now, it is the bursting of the credit bubble and, repeat, not just housing finance. Therefore, its path would be relatively more volatile, unpredictable, prolonged and punctuated by large rallies and false dawns over the next few years.
Optimists will point out that sovereign wealth funds would step in to provide stability to markets. It is possible. However, in doing so, they would be playing the role of Greenspan who always stepped in to help stabilize financial markets with interest rate reductions. That spawned bubbles in Internet and technology stocks and in housing finance. But that did not prevent the technology bubble from bursting. It probably made the bubble bigger. That is what sovereign wealth funds would be doing if they prop up markets. They might be able to delay the inevitable, not make it disappear.
Into this mix, one must throw the volatility that the price of crude oil would cause to economies, to the inflation outlook and asset prices, particularly in Asia. Asian economies have only been superficially strong. Now that the tide of liquidity has withdrawn, the rising price of oil would reveal that many Asian economies and markets were swimming naked.
Mohammed El-Erian, the president and chief executive of Harvard Management Co. and a faculty member of the Harvard Business School, in an excellent article in the Financial Times on Thursday succinctly observed that we may be exiting the world in which “individual investors’ performance was essentially a function of the degree of their exposure to the most illiquid and leveraged asset classes”. In the coming years, however, investors’ performance would be a function of the degree of their composure.

Sun Pharma

Sun Pharma

ONGC Ltd

ONGC Ltd

EXCLUSIVE - Equibrain Report - July 31 2007

EXCLUSIVE - Equibrain Report - July 31 2007

Market Close: Gains outshined ahead of RBI meet.

Jittery start but Heavyweigths supporting the the rally. Indices with SBI results, REL, Cement majors and HUL rallied over 200 points. REL Energy won the Sasan ultra Mega Power, Cement majors rallied fuelling Indices to cover losses made in the previous session. As we mentioned in the outlook market did bounce but fell at the final hours as investors traded cautious to close marginally up. Banking stocks surged ahead of the quarterly monetary policy as Reserve Bank of India (RBI) is scheduled to meet tomorrow. Asian markets recovered at the close while Europe opened on a positive note tracking Asia.

Sensex ended up by 26 points at 15260.91. It was helped up by gains in HLL (208.75,+6 percent), SBI (1579,+5 percent), Guj Ambuja (129.3,+3 percent), Grasim (2946.8501,+3 percent) and ACC (1022.6,+2 percent). Restricting the gains were Hindalco (166.15,-4 percent), ITC (167.3,-3 percent), TCS (1137.75,-1 percent), Bajaj Auto (2292.5,-1 percent) and Dr Reddys (635.95,-1 percent).

Hindustan Unilever (HUL) surged 6% up after the board of directors considered and approved a share buyback up to an aggregate amount of Rs 630 crore at a maximum price of Rs 230 per share which is subject to shareholders approval and also it has reported a 23.9% increase in second quarter net profit before exceptional items. The growth was boosted by increased prices of some key brands and better sales in other categories such as foods. HUL formerly Hindustan Lever posted a profit of Rs 472 C after adjusting for the profit on the sale of land in Maharashtra. The shares are proposed to be bought from both the exchanges through open market purchases from time to time. It has also recommended a dividend of Rs 3 per share. The maximum buyback price is at a premium of 17%. The share capital would be reduced by 1.24% if the buyback value is at Rs 230 and the shareholding of Unilever which holds a little over 51% would increase by about 0.6%.

GAIL (India) Ltd. has recorded an impressive growth in Q1. Profit After tax has increased by 16% to Rs.685 crore in Q1 as against Rs 592 crore in the corresponding quarter in the previous year. Turnover (excluding Excise Duty) has increased by 4% to Rs. 4,246 crore in the first quarter of 2007-08 as against Rs 4078 crore in the first quarter of the previous financial year. The PBT has also increased by 14 % to Rs 969 crore in the first quarter of the current financial year as against the Profit before Tax of Rs 852 crore in the corresponding quarter the previous year. The increase in revenue is mainly due to higher per unit realisation from petrochemicals, the increase in production of Petrochemicals by 29% and increase in LPG transmission by 19% during the quarter. During the quarter polymer sales were 105000 MT up by 29% from 81,000 MT in the corresponding quarter in the previous year. The results were in line with market expectations which set in motion market sentiments as the stock ended the day up by 5.8% after the results.

The government on Monday awarded the 4,000 MW Sasan ultra mega power project to Reliance Energy. REL submitted the lowest bid of Rs 1.19616 per kilo watt hour. Initially, Lanco had outbid REL with a tariff bid of Rs 1.196 per unit. The consortium later broke after Globeleq sold its stake to Lanco and Jindal Steel and Power Ltd. Sasan Power Ltd, the special purpose vehicle set up by Power Finance Corporation for setting up the project, had asked three other bidders - RPL, NTPC and Jaiprakash Associates - to submit fresh bids. NTPC and Jaiprakash Associates, however, did not change the prices. Lanco also rallied to close up by 10%.

Technically Speaking: A volatile day which continued to trade between an intra day high of 15,452 and low of 15,135. Volume stood at Rs.5031 Cr. Advances outnumbered the Declines where Advance was 1360 and Declines stood at 1367. Sensex has broken the key short term support of 15550, which has turned its short term trend to down. Support range1 of 15110 to 15160 is a key gap support which remained unfilled for quite sometime. As the short term trend is down, the market will look to sell off from very rally. Currently the second resistance range is most important, which if fails to hold the up move then will negate the short term downtrend in the market.