Post Session Commentary - Nov 28 2008

The domestic market managed to end in green due to the buying support on key stocks led by better-than-expected economic growth data which stood at 7.60% for Q2. Earlier volatility was witnessed during the trading on the expiry day of derivative contracts for the November 2008 series along with terror attacks. Sentiments were already weak on global financial crises, which resulted heavy outflow of foreign capital. However, expectation of further rate cut by RBI gathered momentum. Recovery was also led by IT stocks on weaker rupee. Market opened on lower on the back of the terrorist attack in Mumbai and suddenly turned choppy due to the expiry of the November 2008 derivate contracts today. Further market continued to trade with instability and dropped in afternoon on reports of fresh firing outside the Chattrapati Shivaji Terminus (CST) rail terminus. Finally denial of this report along with recovery in Asian markets and slightly higher Dow futures boosted key benchmark indices to day''s high. NSE Nifty ended above 2,700 mark and BSE Sensex above 9,000 level. From the sectoral front, most of the buying was observed in IT, teck, Auto, FMCG and Bank stocks. However, Reality, Metal, PSU and Oil & Gas stocks contributed to the negative sentiments. Midcap stocks joined the upward journey while Small cap stocks remained out of favour.

Among the Sensex pack 16 stocks ended in green territory and 14 in red. The market breadth was negative as 1114 stocks closed in red while 915 stocks closed in green and 64 stocks remained unchanged.

The BSE Sensex closed higher by 66 points at 9,092.72 and NSE Nifty ended marginally up by 2.85 points at 2,775.10. The BSE Mid Caps ended with gain of 8.38 points at 2,885.76 while and BSE Small Caps closed with loss 10.28 points at 3,304.61. The BSE Sensex touched intraday high of 9,157.62 and intraday low of 8,889.18.

Gainers from the BSE Sensex pack are TCS Ltd (5.89%), BHEL (4.78%), Infosys (4.49%), M&M Ltd (4.47%), HDFC (3.34%), Satyam Computer (2.60%), Sterlite Industries (2.58%), Bharti Airtel (2.50%), Tata Power (2.18%), HDFC Bank (1.46%) and Hindalco (0.95%).

Losers from the BSE Sensex pack are Reliance infra (3.26%), L&T Ltd (3.14%), Grasim Indus (3.03%), NTPC Ltd (2.86%), Tata steel (2.55%), Tata Motors (2.43%), Ranbaxy Lab (2.05%), Relinace Communication Ltd (1.71%) and SBI (1.58%).

Indian economy grew at 7.60% for the second quarter of FY09 as against 9.3% (YoY) and 7.9% (QoQ). The services sector growth was at 9.6% from 10.5% in the year ago period. The construction growth for the second quarter stood at 9.7% from 11.8% of previous year.

The BSE IT index gained (3.67%) or 90.49 points to close at 2,558.94. Major gainers are Patni Computer (13.95%), TCS Ltd (5.89%), NIIT Ltd (5.56%), Infosys (4.49%), Moser Bayer (3.39%) and Oracle Fin (2.84%).

The BSE Teck index ended higher by (2.45%) or 47.80 points at 2,001.63 as Patni Computer (13.95%), TCS Ltd (5.89%), NIIT Ltd (5.56%), Infosys (4.49%), IBN18 (3.97%) and Moser Bayer (3.39%) ended in positive territory.

The BSE Auto index advanced by (1.43%) or 32.81 points to close at 2,330.56 Gainers are Amtek Auto (14.77%), Cummins Indi (5.22%), M&M Ltd (4.47%), Hero Honda Motors (3.37%), Maruti Suzuki (0.67%) and Exide Indus (0.64%).

The BSE Reality index ended lower by (0.97%) or 15.26 points at 1,561.01. Major losers are Unitech Ltd (10.81%), Ansal Infra (5.10%), Pheonix Mill (4.28%), Orbit Co (3.78%) and Mahindra Life (2.00%).

The BSE Metal index dropped by (0.84%) or 37.34 points to close at 4,383.38. Losers are Nalco (7.95%), Welspan Gujarat Sr (7.73%), Hindustan Zinc (3.10%), JSW Steel (2.82%), SAIL (2.77%) and NMDC Ltd (2.74%).

The BSE PSU index lost (0.77%) or 35.53 points to close at 4,585.53. Losers are Chennai Petroleum (5.89%), Neyveli LIG (5.80%), Allahabad Bank (3.85%), IDBI Bank (3.50%), Corporation (3.40%) and NTPC Ltd (2.86%).