Post Session Commentary - Oct 21 2008

Market continued its upward movement for the second straight day and ended with heavy gains on strong buying across the board. Investors hunted for bargains on favorable global cues and CRR cut by RBI along with Prime minister’s assurance that the Indian economy continued to be resilient. RBI cut its repo rate for the first time in 4.5 years on Monday by 100 basis points to 8.0% to soften the liquidity condition. Domestic markets opened on strong note tracking favorable cues from the markets across the world. Global markets lifted by the government’s efforts to push down short-term lending rates. Along with this Fed chairman Ben Bernanke indicated about another fiscal stimulus package and also expressed confidence in the government''s recent efforts to restore the financial system. Further market continued to recover from last week’s losses and extend its gains. Finally, market closed sharply higher on hopes that the global credit crisis would ease due to measures taken by policy makers across the world. BSE Sensex ended above 10,600 level along with NSE Nifty above 3,200 mark. On the sectoral front, all indices exhibited a good show and Consumer Durable and Reality stocks outperformed the benchmark index as they ended with gains of more than 8%. Apart from that, Capital Goods, Oil & Gas, Metal and IT stocks witnessed most of the buying from these baskets. Midcap and Smallcap stocks were also able to gain favor from the market.

Among the Sensex pack 28 stocks ended in positive terrain while 2 in red. The market breadth was positive as 1613 stocks closed in green while 975 stocks closed in red and 63 stocks remained unchanged.

The BSE Sensex closed higher by 460.30 points at 10,683.39 and NSE Nifty ended up by 112.1 points at 3,234.90. The BSE Mid Caps and Small Caps closed with gains of 80.89 points at 3,587.24 and by 83.46 points at 4,196.28. The BSE Sensex touched intraday high of 10,750.20 and intraday low of 10,250.23.

Gainers from the BSE Sensex pack are JP Associates (16.25%), TCS Ltd (12.86%), Reliance Communication Ltd (11.25%), Tata Steel (10.20%)), Satyam Computer (9.84%), Tata Power (9.60%),), Sterlite Industries (8.59%), L&T Ltd (6.13%), ACC Ltd (6.03 %), Reliance (5.73%), Wipro Ltd (5.61%) and HDFC (5.25%).

The BSE Capital Goods index closed higher by 392.92 points at 7,563.42. Gainers are Praj Industries (13.51%), Suzlon energy (8.73%), Siemens Ltd (8.33%), SKF India (7.49%), Crompton Greaves (6.69%) and Areva (6.14%).

The BSE Oil & Gas index gained 251.78 points to close at 6,774.28. Major gainers are Reliance Petroleum (5.92%), Reliance (5.73%), Cairn India (4.95 %), Aban Offshore (4.21%), Reliance Natural Resources (3.55%) and Essar Oil Ltd (2.73%).

The BSE Reality index ended up by 202.32 points at 2,632.93. Gainers are Indiabull Real (27.65%), Housing Development (19.14%), Mahindra Life (11.78%), Penland Ltd (9.20%), Orbit Co (6.78%) and Unitech Ltd (6.00%).

The BSE Metal index advanced by 214.40 points to close at 6,101.76. Major gainers are Tata Steel (10.20%), Sterlite Industries (8.59%), Sesa Goa Ltd (5.85%), Wespan Gujarat SR (5.07%), Hindustan Zinc (3.47%) and JSW Steel (2.17%).

The BSE Consumer Durable index surged 186.54 points to close at 2,271.82 as Titna Ind (17.39%), Videocon Ind (7.26%), Rajesh Export (6.52%), and Gitanjali GE (1.46%) ended in positive territory.

The IT index gained 165.37 points to close at 2,906.83 as TCS Ltd (12.86%), Tech Mahindra (11.51%), Oracle Fin (9.85%), Satyam Computer (9.84%), NIIT Ltd (8.42%) and HCL Tech (8.10%) in positive territory.