Post Session Commentary - July 2 2008

The domestic market today came out strongly by breaking its last three days losing trend to close with handsome gains. It recovered smartly since afternoon after showing lots of volatility at the initial stage. This was supported by the recovery in the European markets and positive closing of the US market, which gave a ray of hope to the investors to book their positions. The BSE Sensex bounced back by crossing the 13,650 level mark and NSE Nifty above 4,050, as both rallied more than 5% in a day. The BSE Midcap and Smallcap indices also followed the benchmark indices to close with addition of more than 3% and 1.9% respectively. Market opened on positive note on the back of mixed global cues and soon turned volatile during early trade. Bulls took the charge and kept the bears completely under control to provide a platform to the market to close with heavy gains. From the sectoral front, Metal, Capital Goods, Reality, Oil & Gas and Bank stocks posted decent gains while FMCG counter was out of favor due to the selling pressure. The sudden rush for key stocks from realty index had sustained up the BSE Realty index by an impressive advance of 12%. The market breadth was positive as 1586 stocks closed in green while 1094 stocks closed in red and 57 stocks remained unchanged.

The BSE Sensex closed higher by 702.94 points at 13,664.62 and NSE Nifty ended up by 196.60 points at 4,093.35. The BSE Mid Caps and Small Cap closed positive with growth of 169.44 points and 121.69 points 5,311.30 and 6,506.80 respectively. The BSE Sensex touched intraday high 13,712.31 of and intraday low of 12,822.75

Gainers from the BSE are DLF Ltd (15.08%), Reliance Infra (12.60%), HDFC (11.10%), ONGC (8.12%), L&T Ltd (7.33%), Satyam Computer (7.18%), JP Associates (7.03), Mahindra & Mahindra Ltd (6.57%) and Infosys Technologies Ltd (6.45%).

The Metal index closed higher by 744.83 points at 13,239.02. Gainers are Sh Precoated (14.36%), Jindal Steel (12.67%), Ispat Industries (10.68%), Maharashtra Seamless (8.98%), Sterlite In (6.28%) and Tata Steel (6.21%).

The Capital Goods index advanced by 573.83 points to close at 10,318.14. Major gainers are Praj Industries Ltd (13.75%), Siemens Ltd (9.30%), Punj Lloyd (9.12%), Areva (8.44), L&T Ltd (7.33%) and Havells India (5.44%).

The Reality Index closed higher by 515.26 points at 4,731.19. Gainers are Ansal Infra (28.17%) along with Akruti City (19.98%), Housing Dev (19.22%), Penland Ltd (17.75%), DLF Ltd (15.08%) and Indiabulls Real (14.27%).

The Oil & Gas index closed up by 461.57 points at 9,195.29. As Reliance Natural Resources (13.12%), ONGC (8.12%), Essar Oil Ltd (7.92%), Aban Offshore (5.67%), Reliance Petroleum (5.09%) and Relaince (4.84%) closed in positive territory.

The Banking index closed up by 336.04 points at 5,919.63. Gainers are Bank of India (13.10%), Punjab National Bank (10.49%), Karnataka Bank (9.83%), Kotak Bank (8.54%), SBI (4.04%), Allahabad Bank (6.33%), Union Bank (5.69%) and ICICI Bank Ltd (5.68%).

The FMCG index closed down by 22.29 points at 1,999.15. As REI Agro Ltd (5.00%), United Sprit (3.49%), Britania In (2.83%), ITC Ltd (2.10%) and Godrej Cons (0.42%) closed in negative territory.