The BSE Sensex loses 113.54 points or 0.89% ahead of F & O Expiry:The Mid Cap & Small Cap Indices slips 37.34 and 21 points respectively: No cause of any major worry till Nifty stays above 3600:

Market ended weak as profit booking continued throughout the day's trading session. The volatility was high as open derivative positions were to be squared off or rolled over ahead of their expiry on Thursday (26 October). The market remains closed on Tuesday and Wednesday on account of local holidays. All the sectoral indices ended with losses. The BSE Sensex lost 113.54 points or 0.89% at 12,623.28. It opened slightly higher at 12,757.31 and rose to a high of 12,766.30. But the Sensex started declining soon and slipped to a low of 12,612.36 in late afternoon trade. The S&P CNX Nifty lost 26.20 points or 0.71% to 3657.30. The market breadth was negative with 1433 shares declining, as compared to 978 that rose on BSE. 58 shares remained unchanged. The BSE Mid Cap index ended 37.34 points lower at 5,326.56 while the BSE Small Cap index lost 21 points to 6, 463.95. The total turnover on BSE amounted to Rs 2409 crore Among the Sensex pack, 23 declined while the rest advanced. Private sector banking major, ICICI Bank was the top loser, down 2.21% to Rs 721.55 on 76357 shares. ICICI Bank announces Q2 results tomorrow. Hindalco Industries (down 2.03% to Rs 183.55), Cipla (down 2% to Rs 257.45) and ITC (down 2.17% to Rs 184.50) were the other losers. Tata Steel lost 1.44% to Rs 508.65 on 7.37 lakh shares. Tata Steel on Friday won approval from Anglo-Dutch firm Corus Group for its 4.3 billion pound ($ 8.04 billion) takeover bid, creating the world's fifth-largest steelmaker. IT shares slipped on profit taking after a recent surge, with the BSE IT index declining 1.13% or 53.94 points to 4378.02. Infosys (down 1.36% to Rs 2046), Satyam Computer (down 1.08% to Rs 425.55), TCS (down 1.24% to Rs 1078.50) and Wipro (down 1.57% to Rs 545.55) declined. Ranbaxy declined 1.13% to Rs 410.45. It signed licensing agreement with Swiss Company Debiopharm, for NCE Drug in the Gastroenterology Segment. Index heavyweight, Reliance Industries (RIL) was down 0.52% to Rs 1195.55 on 5.65 lakh shares. It moved in a range of Rs 1205.60 – Rs 1192.15. Bajaj Auto was the top gainer, up 1.93% to Rs 2815 on 1.76 lakh shares. The stock lost around 12% last week, after its net profit for the quarter ended September 2006 missed street expectations. The company's margins were under pressure. HDFC Bank (up 1.06% to Rs 971.40), Maruti Udyog (up 0.31% to Rs 943.50) and ACC (up 0.35% to Rs 978) advanced. Even as the market was under selling pressure, sugar stocks witnessed renewed buying interest, on market talks that the ban on export of sugar would be lifted soon. Monnet Sugar (up 12.70% to Rs 78.10), KM Sugar (up 5.69% to Rs 56.15), Triveni Engineering (up 1.64% to Rs 71.45), Balrampur Chini Mills (up 4.50% to Rs 113.75), Dwarikesh Sugar (up 3.12% to Rs 162), Bajaj Hindustan (up 3.60% to Rs 345.10), Dhampur Sugar (up 1.51% to Rs 124.60 ), Shree Renuka Sugar (up 3.45% to Rs 647), and Uttam Sugar (up 2.68% to Rs 195.50) edged higher. The BSE Metal index lost 1.35% or 121.87 points to 8923.79 on profit booking. SAIL (down 2.2% to Rs 88.60), Hindustan Zinc (down 2.51% to Rs 776.30), Sesa Goa (down 1.95% to Rs 1077) and Jindal Saw (down 1.39% to Rs 363), declined. Among the side counters, IFCI jumped 7.69% to Rs 13.17 on huge volume of 1.55 crore shares. It had surged to a high of Rs 13.45. The company came out with turnaround results, on Thursday (19 October 2006). India Cements (ICL) lost 0.36% to Rs 220, after surging to a high of Rs 224.90. The company reported a 1905% surge in net profit for Q2 September 2006 to Rs 117.32 crore as compared to Rs 5.85 crore in Q2 September 2005. The results were within the range of market expectations. Five brokerages had forecast a between 1524% to 2139.9% growth in ICL's Q2 net profit to between Rs 95 crore to Rs 131 crore. Net sales rose 31.9% to Rs 516.35 crore (Rs 391.41 crore). Five brokerages had forecast a between 26.7% to 37.8% growth in ICL's sales to between Rs 496.03 crore to Rs 539.30 crore. Alstom Projects jumped 8.76% to Rs 377 after it reported 172% surge in net profit for the Q2 ended 30 September 2006 to Rs 31.30 crore from Rs 11.50 crore in Q2 September 2005. Net sales rose 18.3% to Rs 267.70 crore (Rs 226.20 crore). Software services firm Four Soft lost 2.50% to Rs 68.30. The company signed an agreement to acquire the freight and shipping business of FWL Technologies. FWL has operations in the UK, India, Singapore and the United States, the company said in a statement. Rain Calcining slumped 6.40% to Rs 47.55 despite reporting a surge in Q2 September 2006 net profit to Rs 22.3 crore (Rs 13 crore). Net sales rose to Rs 189.2 crore (Rs 154 crore). Bharati Shipyard slipped 0.74% to Rs 356. Its Q2 September 2006 net profit surged to Rs 12.7 crore as compared to Rs 7.89 crore in Q2 September 2005. Net sales rose to Rs 84.4 crore (Rs 71.8 crore). Lok Housing and Construction jumped 5% to Rs 303.05 on 8.40 lakh shares. The company had reported turnaround results last week for the September quarter 2006. I had recommended the stock on the day the results were declared, when the investors were reeling under the news on RIL might come out with not so good result[Please go through my previous mails in Yahoo Group--SumanSpeaks]. Shringar Cinemas advanced 3.50% to Rs 63.50 after it reported turnaround results for the quarter ended September 2006. Shringar Cinemas has reported a net profit of Rs 2.66 crore for Q2 September 2006 as against a net loss of Rs 0.39 crore during the same period last year. Total revenues rose by 67.38% to Rs 15.33 crore from Rs 9.16 crore. Kesoram Industries rose 2.14% to Rs 486 after company posted sharp spurt in net profit for Q2 July-September 2006. Kesoram reported a net profit of Rs 56.81 crore for Q2 September 2006 compared with a net profit of Rs 2.08 crore a year earlier. Net sales surged 32.4% to Rs 505.24 crore (Rs 381.58 crore). Vakrangee Softwares lost 4.75% to Rs 218.75. It posted 84.30% jump in net profit for Q2 September 2006 to Rs 4.81 crore compared to Rs 2.61 crore in Q2 September 2005. Net sales rose 217.60% to Rs 30.24 crore from Rs 9.52 crore. Sonata Software declined 4.24% to Rs 35. It posted 64.80% rise in net profit to Rs 9.26 crore for Q2 September 2006 compared to Rs 5.62 crore for Q2 September 2005. Net sales rose 30% to Rs 47.06 crore from Rs 36.23 crore.

Zenith Computers Ltd recommended at around Rs.82 hit the buyer freeze today. Zenith Fibres Ltd recommended at around Rs.24- 25 range also hit the 20% upper freeze

Chandra Prabhu International Ltd. closed a tad below yesterday's closing price, ahead of its results, which it is expected to publish at the end of this month. The company should show improvements both in toplines and bottolines when compared sequentially. Last quarter the company came up with disappointing results. This year the company should benefit from the fall in the Crude Oil. The company makes synthetic rubber, like Apcotex Industries which also went up to Rs.47 before closing at around Rs.44.5. The book values of the shares of Chandra Prabhu International is a whopping Rs.14.30 and the expected EPS should be around Rs.4--5 for the FY--06-07. SO BUY AS MUCH AS U CAN FOR A SHORT TO MEDIUM TERM OUTLOOK.

Zenser Technologies Ltd. which was recommended at Rs.203 and Rs.214 is still at around Rs.238.7. I have placed a one year target of Rs.292.

Oriental Beverages Ltd which rose after I recommended is still ruling firm at Rs.15.50. The company is also into construction space and it has come out with excellent results in the June, 2006 quarter. The company has taken the franchisee of "Bisleri" mineral water.

Volume built-up is showing on the counter of Pioneer Distillaries Ltd. I had earlier recommended the stock when it rose to Rs.19.5.

Yesterday I recommended Talbros Automotive Components Ltd at Rs.65 and today it came out with the following news:

Talbros Automotive Components Ltd has informed BSE that one of the objects of the IPO was setting up of Forging Plant by the Company at Bawal in Haryana.Further the Company has informed that, the Forging Plant at Bawal has already commenced trial runs and commencement of commercial production is expected shortly. In this connection the Company has announced execution of a Technical Assistance agreement with Presswerk Krefeld GmbH & Co. KG (PWK) of Germany for a period of 7 years. The collaboration agreement envisages transfer of technology in the field of Hot Forged items including Tool Design, Manufacture & Maintenance, Heat Treatment and other related areas.Established in the year 1898 PWK has gone through a few name changes by virtue of change of ownership and acquisition. PWK has its main manufacturing facility at Krefeld in Germany and also has a Joint Venture in China. The Company has technology for Hot Forging of Ferrous and Aluminum, Warm Forging, Cold Forging and Plastic Engine Moulding.PWK manufactures Housings for Lower Ball Joints & Suspension Ball Joints, Steel & Aluminium Control Arms, Ball Studs, Plastic Injection moulded Components and other Forgings for Automotive Industry.PWK is supplying majority of its products to OEMs and Tier 1 suppliers. Some of the major OEM/Tier 1 customers are IVECO, MAN, DAIMLER CHRYSLER, SKODA, FIAT, BMW, VOLKS WAGON, TRW etc.PWK is a part of 800 million dollar Maclean Fogg. Group head quartered in USA. Maclean Fogg has basically two lines of business - One in Automotive Components and the other in components for Power Transmission.This agreement apart from making available contemporary technology for forging also opens up a potential avenue to the Company for export of its products as well as a buy back opportunity for its collaborators. This technology Agreement will greatly benefit the forging activity of the Company in terms of manufacturing the product in most efficient way in conformity to the global standards. The Asian markets were mixed on Monday. Japan's Nikkei average rose 0.82% on Monday to its highest close in five months as Shin-Etsu Chemical Co. extended gains after reporting strong earnings results, while property stocks also drew buyers for their bright earnings prospects. The Nikkei 225 index climbed 137.19 points to 16,788.82, the highest close since 11 May 2006. Hong Kong's Hang Seng index lost 0.13% or 23.70 points to 18,089.85.

Today the Aisan markets are ruling firm taking cue from the positive US markets. US markets rallied yesterday with Dow Jone Industial Average, rising by 114.54 points and Nasdaq by 13.26 points. [With Inputs from the Internet]

More on the following mails..........

Best wishes,

Suman Mukherjee

India.

www.bcozindia.com

www.eindiabrokers.com

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