Strong rally supported by the global cues propelled Indian indices. Market traded firm till the afternoon session and peered some of its gains as investors preferred profit booking at higher levels. But there was sustained buying in heavyweights which kept market to trade higher. Metals were shining throughout the day and were the star performers like Jindal & Bhushan steel. Host of steel stocks were attracting good buying followed by Realty, Cap goods and Power stocks. Technology space also bounced back and was among the top gainers. Nitco stock fired up after some reports stated that leading FII had picked up 15% stake. Both the Midcap and smallcap indices closed up over 1%. Asian markets had a strong session, barring Shanghai while other Asian Markets closed in green. Europe trading in positive terrain now. Crude at $98 is putting pressure on the Airline and Oil marketing companies as the ATF prices are expected to be hiked on December 1st 2007, but the oil marketing are also hit by the crude prices.
Sensex ended up by 395 points at 19247.539. It was helped up by gains in HDFC Bk (1643.7,+5 percent), Bharti Tele (948,+4 percent), Rel Energy (1789.55,+4 percent), TISCO (849,+3 percent) and ONGC (1184.2,+3 percent). Restricting the gains were in Tata Motors (710.2,-1 percent), SBI (2242.25,0 percent).
Apar Industries Ltd a diversified company having presence in Speciality Oil, Aluminium Conductor and Polymers. It has 3 plants located at Rabale-Thane, Silvassa and Nalagarh - Himchal Pradesh. It is the largest manufacturer of Transformer Oils in India and the second largest manufacturer of high strength overhead power transmission and distribution conductors. The Company earns around 48% of its revenues from the power sector and 42% from Speciality oil and 10% from Polymers. With the buoyancy in the power sector, the two segments of the company are expected to see immense growth. Powers sector the major drive to the company. Last quarter the top line grew by 16% to Rs 418 cr and the bottom line grew by 19%. The company has sold the non performing polymer business to concentrate more on its core business and looking for businesses to expand in power which earns more. The stock is well placed but we believe there could be better opportunities. We have detailed note on this stock. Do read to have clear idea and to know our view on this stock. Today the stock performed well and ended up by 5%.
National Aluminium Corporation (Nalco) was one of the buzzing stock for the day which ended up by 14%. Nalco reported some of its plans in coming future which supported the stock to perform. It has plans invest around Rs 20,000 crore to set up two new greenfield projects an alumina refinery in Andhra Pradesh and an integrated Aluminium complex in Orissa. Nalco has also planed to go for a follow-on public offering including a rights issue to part fund investments. It is also set to rise around Rs 6,000 crore through external commercial borrowings (ECB) to finance equipment imports. Government holds 87.15% stake in the PSU. All the process is on cards which is been discounted in the market price.
Technically Speaking: Markets traded strong following the global upswing, with strong positive breadth. Sensex touched intraday high of 19360 and low of 19138. Sensex turnover was low at Rs 5823 Cr. Market breadth was in favor of Advances, where the Decliners stood at 996, Advances were stood at 1774. Sensex today faced resistance at its 20 DMA of 19360. Low volumes are suggesting lower participation and hence we could see a volatile expiry close this Thursday as the liquidity is likely to be less. Traders can look for shorts if Sensex trades below 19000.
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