Post Session Commentary - Nov 26 2008

The domestic market ended with handsome gains on account of buying activity in index heavyweights, after reporting a fall on previous session. Market opened on firm note along with other Asian markets backed by latest US Federal Reserve measures to boost the flagging US financial system. Further benchmark indices were not able to hold the momentum and pared its gains to trade with instability. Volatility rose ahead of the derivatives expiry for November 2008 series on 27 November 2008. Finally market turned upward as renewed buying interest during final trading hours led rally in the bourses. Stocks surged on the hopes of rate cuts by other central banks after a surprise steep rate cut announced by China''s central bank. China''s central bank cut banks'' benchmark lending and deposit rates by 1.08% for the fourth time since mid-September 2008. NSE Nifty ended above 2,700 mark and BSE Sensex around 9,000 level. From the sectoral front, all indices ended in green and Bank stocks outperformed the benchmark indices as ended with gain of around 6%. Apart from that, most of the buying was seen in Oil & Gas, Metal, Teck, Pharma, Reality, Power and IT stocks. Midcap stocks also joined the rally while Small cap stocks remained out of favour.

Among the Sensex pack 28 stocks ended in green territory and 2 in red. The market breadth was negative as 1222 stocks closed in red while 938 stocks closed in green and 68 stocks remained unchanged.

The BSE Sensex closed higher by 331.19 points at 9,026.72 and NSE Nifty ended up by 98.25 points at 2,752.25. The BSE Mid Caps ended with gain of 4.79 points at 2,877.38 while and BSE Small Caps closed with loss 18.53 points at 3,314.89. The BSE Sensex touched intraday high of 9,061.72 and intraday low of 8,658.53.

Gainers from the BSE Sensex pack are Sterlite Industries (12.88%), ICICI Bank (9.55%), HDFC Bank (8.63%), NTPC Ltd (6.93%), Reliance (6.11%), DLF Ltd (5.53%), Wipro Ltd (5.33%), HDFC (4.92%), Ranbaxy Lab (4.72%), TCS Ltd (4.72%), Bharti Airtel (4.51%) and Reliance Infra (4.41%).

Losers from the BSE Sensex pack are M&M Ltd (2.55%) and Maruti Suzuki (0.50%).

China''s central bank cut its lending and deposit rate by 108 bps to 5.58% from 6.66%. The rate cut will come into effect on 27th November 2008. This move is highlighting the deteriorating conditions for the Chinese economy as it the largest move for the central bank since 1997 and the fourth time in ten weeks. Along with this, the deposit rate will drop to 2.52% from 3.60%.

The BSE Bank index gained (5.96%) or 260.23 points to close at 4,625.23. Major gainers are ICICI Bank (9.55%), HDFC Bank (8.63%), Axis Bank (6.05%), Oriental Bank (5.20%), Bank of Baroda (4.68%) and Kotak Bank (4.19%).

The BSE Oil & Gas index advanced by (4.41%) or 238.69 points to close at 5,648.06 Gainers are Reliance (6.11%), BPCL (5.01%), Essar Oil Ltd (4.53%), Reliance Petroleum (3.60%), Cairn Ind (3.26%) and Gail India (2.64%).

The BSE Metal index went up by (3.66%) or 156.28 points to close at 4,420.45. Gainers are Sterlite Industries (12.88%), SAIL (8.37%), Nalco (6.42%), Hindustan Zinc (3.50%), Tata Steel (2.72%) and Jindal Steel (2.52%).

The BSE Teck index ended higher by (2.17%) or 41.45 points at 1,953.83 as Tanla (11.01%), Deccan Chr (9.03%), HT Media (8.63%), Patni Computer (6.06%), Idea Cell (5.55%) and Wipro Ltd (5.33%) ended in positive territory.

The BSE Pharma index gained (2.16%) or 60.83 points to close at 2,879.09. Gainers are Sterlite Biotec (8.34%), Divis Lab (5.01%), Ranbaxy Lab (4.72%), Lupin Ltd (4.17%) and Cipla Ltd (3.49%).

The BSE Reality index ended higher by (2.12%) or 32.78 points at 1,576.27. Major gainers are Pheonix Mill (7.22%), Indiabull Real (6.61%), DLF Ltd (5.53%), Akruti City (3.37%) and Sobha Dev (0.86%).