Market Close: IIP..Dampens sentiments..

Indian Markets have a mind of their own. Globally market were mixed which kept Indian Indices volatile. The trend on the bourses today was similar to yesterday as the market opened higher but settled down on late selling. Direction is lacking and we dont see any trigger for market in near terms. After mid sessions markets slipped in negative zone on lower that expected Industrial data. The growth drop to 7% in July. Investors preferred to play cautious on disappointing economic data. However, we believe that this sets stage for interest rate cut. Aluminum, Banking, Pharma and Software were under pressure while some stocks in the Power, Steel and Engineering sector were favored by investors. Mid cap and Small cap outperformed the front liners.

Sensex ended the day down by 37 points at 15505.36. Weighing on the Sensex were losses in NTPC (190.35,-3 percent), ITC (180,-2 percent), ICICI Bk (884.7,-2 percent), Cipla (175.25,-1 percent) and Hindalco (155.2,-1 percent). Losses were restricted by gains in Rel Energy (894.3, +4 percent), Bajaj Auto (2392.7, +3 percent), RIL (2012.95, +1 percent), HDFC (2174.05, +1 percent) and TISCO (711.3, +0 percent).

Western India Shipyard (WISL) had recently undergone a corporate debt restructuring, under which institutions had increased their shareholding to around 40% in the company from 15.34% in March 2007. Reports also said that ABG Shipyard is set to take over WISL for Rs 200 cr. ABG will get management control of WISL and the 40% stake held by financial institutions led by ICICI Bank. It's a court initiated sale as WISL has more debt in its book. The current outstanding debt is Rs 280 cr. WISL is a one of the India's largest composite ship repairer at Goa. WISL Revenues were placed at around Rs 53 cr. Assuming Rs 200 cr for the 40% stake valuations are placed at Rs 500 cr and also there is this extra 280 cr of debt giving an enterprise value of 780 cr. The ABG's Enterprise value to sales is 4.8:1. ABG has an order book of Rs 5000 cr which probably could be handled better using the facilities; this acquisition helps ABG to foot into ship repairing business and that should be a good fit. The acquisition seems strategically good for ABG. But the acquisition price is something where data is lacking to give a fair comment. Investors are really betting on the rehabilitation of WISL as the stock is in upper circuit from the day the news has come. ABG ended marginally up.

Peninsula Land Ltd has entered into an agreement for sale of 5,75,000 square feet (53,420 sq metres) land out of its proposed development at its Dawn Mills premises to Alok Infrastructure Pvt Ltd for Rs 1054 cr. After removing the Debt of Rs 372 cr as on 31/3/07 the value per share comes to Rs 145. The news provided has been minimal and nothing much can be commented on this. Peninsula Land (PLL) is known for its concept based architecture in the commercial, retail and residential sectors. Some of the company's real estate projects are Crossroads, CR2, Peninsula Corporate Park, Peninsula Technopark, Peninsula Business Park, Ashok Towers and Ashok Gardens. PLL rallied to end up by 3%.

As per reports, an apex court directed Reliance Energy (REL) to submit its financial bid for the Mumbai Trans Harbour sea link project within the span of three months. The Reliance Energy consortium, which includes Hyundai Engineering and Construction Company, would be the fourth bidder for the project where three others have already been qualified on technical grounds ahead of financial bids. Consortium led by Mukesh Ambani is the front runner. Maharashtra State Road Development Corporation (MSRDC) had earlier disqualified REL from participating in the bidding process. Mumbai Trans Harbour Link Project would provide a link between Sewri in Mumbai and Nhava in Navi Mumbai. The stock hit all time high but came off to end up by 4%.

Technically Speaking: Sensex traded in volatile manner. It made days high of 15661 and low of 15487. Sensex churned a good turnover of Rs 5362 Cr. Advances outnumbered declines in the ratio 1.4:1. Sensex is facing resistance at 15700 but we believe it is just a matter of time before we cross it and move towards our target of 16100. On the lower side supports at 15490 and 15350.