Indian market took a weak start, traded below the dotted line, however shed most of the loses in final hour recovery. Realty, FMCG and IT appeared weak while Banking, Capital Goods and Auto participated in recovery. The Sensex closed at 18327, down 68 points from its previous close, and Nifty shut shop at 5505, down 6 points. The CNX Midcap index was up 0.5% and the BSE Smallcap index was down 0.7%. The market breadth was negative with advances at 447 against declines of 859 on the NSE. The top Nifty gainers were Siemens, ONGC, Dr Reddy's and GAIL and prime losers included JP Associates, ITC, BPCL and HDFC. The FIIs were net sellers with sales worth Rs 920.38 Cr (prov. cash market fig)

In the next session, NIFTY is to trade in the range 5450-5555. Sustaining above 5555 nifty may take a run up to 5630-5656. However, 5400 may act as a strong support in NIFTY. Banking and Auto are expected to trade strong, while FMCG and IT may face more selling. Traders are suggested to take profit out of stock specific action.

Investors with a horizon of 6-12 months can consider following scrips for their investment. These companies have potential to give higher returns than index over a long term.

IT hardware firm HCL Infosystems has bagged Rs 250-crore order from the public sector telephone service provider Bharat Sanchar Nigam Limited (BSNL).The IT company will be responsible for deploying a modern facility for printing and managing BSNL customer bills and make the entire capital investment to upgrade the existing systems for higher efficiency.

Tata Power, the largest private utility in the country, is negotiating to refinance debt of $270 million, raised to buy assets of Indonesia's PT Bumi Resources. The company had purchased 30% stake in two thermal coal mines and trading companies of Bumi for $1.1 billion in 2007. The acquisition was then backed by UK's Barclays Bank.

Oil and Natural Gas Corp has asked the government not to approve London-listed Vedanta Resources' $9.6 billion acquisition of Cairn India until the issue of excess royalty it pays on Rajasthan crude oil is sorted out. ONGC holds a 30% stake in Cairn India's mainstay Rajasthan oilfields. Its board recommended that the royalty it pays not only on its share, but also on the 70% share of Cairn India, should be deducted from the price realised on the sale of crude oil from Mangala and other oilfields in the Rajasthan block.

Low-cost carrier SpiceJet will launch its regional services from July this year, operating on 16 non-metro routes with Chennai, the capital city of Tamil Nadu, as one of its hubs. The airline plans to have at least three bases, one each in the east, north and South regions, for its operations to smaller cities. SpiceJet will get first of its 15 Bombardier Q400 (regional jet) in June and will use it to launch the services. By the end of this year, it will have eight of these aircraft in its stable.

Aditya Birla Group, which had simultaneously placed bids for two of the world's three largest carbon black assets, has reached an agreement to buy US-based Columbian Chemicals for about $800 million. Columbian has about 9% market share in global carbon black production. The deal may be backed with funding organized by Standard Chartered and Deutsche Bank.

The government today revised the GDP growth rate for the 2009-10 financial year upward to 8 per cent from the earlier estimate of 7.4 per cent on the back of improved performance of the manufacturing and services sectors. The growth rate of 8 per cent in the GDP during 2009-10 has been achieved due to high growth in manufacturing (8.8 per cent), financing, insurance, real estate & business services (9.2 per cent), transport, storage and communication (15.0 per cent), community, social and personal services (11.8 per cent).

The above mentioned ideologies are based on the research done at Fairwealth research department. Fairwealth securities Ltd will not be responsible for any kind of losses incurred by any part either directly or indirectly based on our research results, though we have presented to the best of our knowledge.