Post Session Commentary - Oct 20 2008

From previous week''s sharp sell off, today domestic markets have rebounded but in a tepid manner. Markets opened with positive note tracking favorable cues from Asian markets that gave a fillip to the sentiments of domestic investors. However, markets pared some of its gains after initial surge, due to fears of recession lingering. The indices were about to loose all its gains in the mid session and there came a surprise from RBI with 100 bps cut in the repo rate to 8%. Nevertheless, markets closed with gains on value buying over the counters led by positive response from Asian and European market. BSE Sensex ended above 10,200 level along with NSE Nifty above 3,100 mark. Markets managed to end the day in green zone but were below the days high. European markets also added to the positive sentiments as they opened gap up and continued to trade in green. On the sectoral front, The IT stocks outperformed the benchmark index with gains of more than 8%. Along with this, Bank, Metal, Oil & Gas and FMCG stocks were in limelight as witnesses most of the buying from these baskets. However, Reality, Capital Goods, Power and Auto stocks remained out favor. Midcap and Smallcap stocks also followed the same trend and ended with loss of more than 1% each.

Among the Sensex pack 20 stocks ended in positive terrain while 10 in red. The market breadth was negative as 1643 stocks closed in red while 920 stocks closed in green and 53 stocks remained unchanged.

The BSE Sensex closed higher by 247.74 points at 10,223.09 and NSE Nifty ended up by 48.45 points at 3,122.80. The BSE Mid Caps and Small Caps closed with losses of 38.49 points at 3,506.35 and by 55.04 points at 4,112.82. The BSE Sensex touched intraday high of 10,538.05 and intraday low of 10,023.08.

Gainers from the BSE Sensex pack are TCS Ltd (9.47%), Wipro Ltd (8.95%), Satytam Computer (8.67%), Infosys Tech (7.92%)), HDFC Bank (12.74% HDFC Bank (5.94%),), HDFC (5.73%), L&T Ltd (11.15%) ICICI Bank (4.95 %), Bharti Airtel (4.62%), ITC Ltd (4.07%) and MAruti Suzuki (2.67%).

Losers from BSE Sensex pack are Bhel (5.24%), Grasim Industries (7.96%), DLF Ltd (6.40%), ACC Ltd (6.13%), M&M Ltd (5.39%), Tata Power (3.72%) and Reliance Infra (1.87%).

The IT index gained 204.19 points to close at 2,471.46 as HCL Tech (10.23%), Rolta India (9.74%), TCS Ltd (9.47%), Wipro Ltd (8.95%), Satytam Computer (8.67%) and Infosys Tech (7.92%) in positive territory.

The BSE Bank index advanced 149.03 points to close at 5,695.72. Major gainers are HDFC Bank (5.94%), Canara Bank (5.05%), ICICI Bank (4.95 %), Yes Bank (3.26%), Bank of Baroda (2.80%) and Indian Overseas Bank (2.04%).

The BSE Metal index went up by 85.65 points to close at 5,887.36. Major gainers are Steel Authority (7.05%), JSW Steel (5.79%), Gujarat NRE (4.05%), Hindalco (1.95%), Ispat Indus (1.89%) and Tata Steel (1.75%).

The BSE Pharma index surged 51.47 points to close at 3,260.49 as Dr Reddy’s Lab (9.09%), Sun Pharma (7.02%), Lupin Ltd (4.57%), Glenmark Pharma (3.07%), Wockhardt Ltd(2.84%), and Aurobindo Pharma (2.18%) ended in positive territory.

The BSE Reality index ended down by 94.28 points at 2,430.61. Losers are Orbit Co (8.67%), Parsvnath (7.80%), DLF Ltd (6.40%), Omaxe Ltd (5.78%), Unitech Ltd (5.66%) and Ansal Infra (5.59%).

The BSE Capital Goods index closed lower by 70.86 points at 7,170.50. Losers are BHEL (8.24%), Elecon Eng C (4.95%), Alstom Proje (4.45%), Havell’s India (4.21%), Usha Martin (4.06%) and Walchand Industries (3.38%).