Post Session Commentary - Sep 30 2008

Domestic markets rebounded sharply from days low after sun outage session to end the day with handsome gains. The assuring comments from Finance Minster P Chidambaram that the Indian banking and financial system is well capitalized had provided some boost to the markets after sharp slide. Sentiments also got boosted on expectations that US administration will put forward a revised rescue package for the US financial sector. The BSE Sensex recovered nearly 700 points from days low to end above 12,800 level and the NSE Nifty above the 3900 mark. Markets opened on extremely negative note on weak global cues due to defeat of bailout package. Yesterday House of Representatives rejected the $700 billion bailout plan to save the US financial system. However, the markets suddenly managed to recover a bit but were still below dotted line till sun outage close. Markets extended its gains further to conclude the day in green. From the sectoral front, most of the indices ended with gains and Bank index out performed the benchmark index as witnessed sharp rise of around 5%. Apart from that, smart pullback was led by Capital Goods, Oil & Gas, Reality and Consumer Durables stocks. However, Metal and FMCG stocks remained out of favor as witnessed most of the selling from these baskets. The market breadth was negative as 1316 stocks closed in red while 1277 stocks closed in green and 79 stocks remained unchanged.

The BSE Sensex closed higher by 264.68 points at 12,860.43 and NSE Nifty ended up by 71.15 points at 3,921.20. The BSE Mid Caps and Small Caps closed with gains of 68.96 points at 4,798.29 and by 24.44 points at 5,577.47. The BSE Sensex touched intraday high of 12,995.20 and intraday low of 12,153.55.

Gainers from the BSE are ICICI Bank Ltd (8.42%), TCS Ltd (6.96%), HDFC (5.33)%, Bharti Airtel (5.14%), BHEL (5.07%), SBI (4.32%), L&T Ltd (4.16%), JP Associates (4.12%), Maruti Suzuki (3.73%), NTPC Ltd (3.31%) and HDFC Bank Ltd (2.46%).

The BSE Capital Goods index surged 310.53 points to close at 10,581.13. Major gainers are As Bharat Bijli (6.32%), Usha Martin (5.35%), BHEL (5.07%), Bharat Elect (4.65%), Punj Lloyd (4.53%) and L&T Ltd (4.16%).

The BSE Bank index advanced by 303.75 points to close at 6,478.15. As ICICI Bank Ltd (8.42%), Axis Bank (7.28%), Indus Ind Bank (4.52%), Bank of India (4.45%), SBI (4.32%) and IDBI Bank Ltd (4.27%) closed in positive territory.

The BSE Oil & Gas index ended up by 114.27 points at 9,039.28 as BPCL (5.59%), HPCL (5.39%), IOC Ltd (5.18%), Reliance Natural Resources (5.01%), Aban Offshore (3.10%) and Cairn India (1.24%) ended in positive territory.

The BSE Reality index closed higher by 100.90 points at 3,508.77. Gainers are Ansal Infra (11.63%), Akruti City (10.75%), Orbit Co (7.98%), Unitech Ltd (7.03%), Penland Ltd (3.43%) and Housing Dev (2.50%).

The Consumer Durables index gained 56.02 points to close at 2,929.18. As Titan Ind (3.10%), Gitanjali GE (2.83%), Blue Star L (2.06%) and Videocon Ind (0.69%) closed in positive territory.

The BSE Metal index plunged 152.17 points to close at 8,992.06. Major losers are Jai Corp Ltd (7.42%), JSW SL (4.94%), SAIL (4.87%), Hindustan Zinc (4.82%), Tata Steel (4.43%) and NMDC Ltd (2.19%).