Markets closed the day before the budget announcement on a positive note, as there are no major expectations from the budget this time. Most market analysts expect the government to continue with structural reforms with more attention to deficit management.

The economic survey released today by the government was also cautiously optimistic about the prospects of the economy for the next financial year.

After opening firm, both Sensex and Nifty maintained a steady trend for the rest of the day. Though the Nifty came under some pressure in afternoon trades, the index soon recovered and went back to earlier levels.

Technology stocks were firm today, led by Infosys which gained close to 3.5 per cent. A section of the markets expect some reduction in the fringe benefits tax in the budget. Satyam closed nearly 2 per cent higher.

Select banking stocks gained on expectations of tax benefits on long term bank deposits in the budget. PNB added over 2.5 per cent while SBI closed nearly 2 per cent higher. HDFC Bank gained close to 2.5 per cent.

Cement stocks were also firm in today's trade as cement prices have gained recently. Gujarat Ambuja closed more than 2 per cent higher. Grasim gave up part of its early gains and closed more than a per cent higher.

Select auto stocks were also firm on expectation of a cut in excise duty in the budget. Maruti held firm for most of the day and closed nearly 1.5 per cent higher. M&M added close to 2 per cent.

ABB and HPCL were the other major gainers among index stocks.
FMCG stocks were under pressure in afternoon trades. HLL closed nearly 1.5 per cent lower while Dabur lost close to 2 per cent.

Telecom stocks MTNL and Bharti lost around a per cent each. VSNL lost over 0.5 per cent.

Glaxo was the biggest loser among index stocks, closing more than 2 per cent lower. Sun Pharma gave up close to a per cent.
Bajaj Auto, IPCL and Tata Chemicals were the other losers among large caps.

Sensex closed at 10282, a gain of 81 points, and the Nifty closed higher by 17 points at 3067. Nifty March futures closed at a discount of 12 points to the spot index.

Asian markets, except Pakistan, were all firm today after last week's mixed trend. Most major markets like Japan, South Korea, Singapore and Hong Kong ended the day with gains of between 0.5 per cent and 1 per cent. The Karachi index crashed 3 per cent on reports of bird flu.

Crude prices are weak today after the sharp gains towards the end of last week. April futures are trading nearly $1 per barrel lower at around $62 in early European trades today.

Engineering major Larsen & Toubro has won a contract for the construction of a lubricant plant in Malaysia, along with 2 other companies. The plant would be set up at a total cost of $345 million, out of which L&T's share would be around $198 million. The plant is expected to start operation in 2008.

Pharma major Pfizer has reported a cconsolidated net profit of Rs70.73 crore for the year ended 30 November 2005 as compared to Rs44.59 crore for the previous year. Consolidated revenues have increased to Rs 644.09 crore for the year ended 30 November 2005 from Rs607.16 crore for the previous year.

HCL Technologies has entered into a new deal with Cisco for the next 10 years. Under the deal, Cisco would license a network management product to HCL which would be responsible for engineering of the product. HCL offers offshore services to Cisco through its development centre at Chennai.

Part of MRPL's refining facility would be shut for turnaround for a month starting 22 March. The company said there would be reduction in output during this period.

Mid-Cap Action

Mid-caps held firm after the decent gains on Friday. Though the gains on the index were not spectacular, market breadth was considerably positive. The CNX Mid-Cap index gained 21 points to end the day at 4393.

The board of GNFC would meet tomorrow to consider the merger of Narmada Chematur Petrochemicals, a subsidiary of the company with GNFC. The board of Narmada Chematur Petrochemicals is also meeting tomorrow to consider the merger.

Wokhardt has received US FDA approval to market ranitidine tablets in the US. The company said the current market for the drug is $61 million per annum.

Man Industries said its new plant has been approved by British Gas and Kochi Refineries for supply of pipes.

Areva T&D India, a subsidiary of French energy group Areva, would merge 3 group companies - Areva T&D Systems India Ltd, Areva T&D Lightning Arresters Private Ltd and Areva T&D Instrument Transformers India Pvt Ltd - with itself.

Punj Lloyd has won a new contract for the construction of a hospital building in New Delhi. The order is worth Rs86 crore and is expected to be completed within 14 months.

Spentex Industries has acquired a 44 per cent stake in Amit Spinning by buying out the existing promoters. Spentex would come out with an open offer for an additional 20 per cent. The company had acquired Indo Rama Textiles earlier this month.

Praj Industries has tied up with a Dutch company for cooperation in bio-ethanol projects in Europe. Bio-ethanol is derived from plant sources and is blended with petrol to be used as fuel for automobiles.

PVR has added another single screen property in New Delhi over the weekend, taking the total number of cinema screens operated by the company to 51.

GVK Power and Infrastructure got listed on the exchanges today. Issued at Rs310 per share, the stock opened at Rs376 on the NSE and declined from those levels to a low of Rs305.25. The stock finally closed at Rs315.85, marginally above the issue price.

Madhukon Projects has been awarded a new highway project by the National Highway Authority, to be implemented on a BOT basis. The total cost of the project is Rs629 crore.

Scandent Solutions has won a new order worth $7.8 million from a US state government. The company said it has received orders worth $49 million from various US states for development of healthcare applications over the last 4 months.

Jindal Photo, Eicher Motors and Amtek Auto were among the significant mid-cap gainers on the NSE.

Softpro Solutions, GTC and Williamson Magor were among the significant mid-cap losers on the NSE.

*Disclaimer:The author may have positions in some of the stocks specifically mentioned above at the time of writing this article. This analysis / report is only for the purpose of information and is not an investment advice. Readers are advised to consult a certified financial advisor before taking any investment decisions. While efforts have been made to ensure the accuracy of the information provided in the content the author or publisher shall not be held responsible for any loss caused to any person whatsoever.

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