Post Session Commentary - Dec 10 2008

The domestic market continued its rally for the second successive session and ended the day with decent gains supported by firm Asian markets. The Bull Run was triggered on the news that a tentative deal was reached on a plan to save the hammered US auto industry along with on hopes that governments all over the world will help out ailing industries by implementing the stimulus measures. White House and congressional Democrats on 9th December 2008 reached an agreement in principle on a $15 billion proposal for bailing out US automakers. Along with this in domestic arena, government is expected to pump additional spending over the next four months of the current fiscal ended March 2009 to bring back the confidence of the investors into the market.

The Indian market opened significantly higher tracking positive cues from the Asian markets. Further, market continued its northward journey on strong buying over the counters. Other Asian markets also gained further ground following the fall in dollar and hopes that the policymakers will provide a helping hand to key sectors. Finally, market concluded the day with huge gains on constant strong buying especially during final trading. From the sectoral front, traders on-loaded positions across the sectors. Reality stocks outperformed the benchmark indices as ended with gain of more than 12% on government’s announcement of a stimulus plan to enhance the sector, including a refinance facility for National Housing Bank and priority sector status for housing loan up to Rs.20,00,000. Cement stocks were in demand on hopes of price cut that will boost demand. Apart from that, most of the buying was seen in Metal, Oil & Gas, Capital Goods, Teck, Auto, Power and Bank stocks. Midcap and Smallcap stocks were also in buyers’ radar.

Among the Sensex pack 29 stocks ended in green territory and 1 in red. The market breadth was positive as 1530 stocks closed in green while 876 stocks closed in red and 121 stocks remained unchanged.

The BSE Sensex closed higher by 492.28 points at 9,654.90 and NSE Nifty ended up by 144.25 points at 2,928.25. The BSE Mid Caps and Small Caps ended with gains of 63.21 points and 52.25 points at 2,948.24 and 3,395.45 respectively. The BSE Sensex touched intraday high of 9,678.70 and intraday low of 9,280.16.

Gainers from the BSE Sensex pack are DLF Ltd (18.93%), Mahindra & Mahindra Ltd (15.47%), Grasim Industries (13.66%), Tata Steel (10.92%), Reliance Communication Ltd (10.24%), ACC Ltd (9.92%), Wipro Ltd (9.80%), Reliance (9.57%), JP Associates (8.96%), Sterlite Industries (8.82%), Reliance Infra (8.70%), ICICI Bank (8.15%) and HDFC (7.47%).

Only one loser from the BSE Sensex pack is Ranbaxy Lab (1.08%).

The BSE Reality index ended up by (12.56%) or 223.72 points at 2,005.09. Major gainers are DLF Ltd (18.93%), Housing Dev (13.43%), Indiabull Real (10.62%), Pheonix Mill (7.78%), Unitech Ltd (6.54%) and Orbit Co (5.86%).

The BSE Metal index ended higher by (8.38%) or 400.70 points at 5,181.92 as Steel Authority (15.77%), Tata Steel (10.92%), Jai Corp Ltd (9.28%), Jindal Steel (9.14%), JSW Steel (9.09%) and Sterlite Industries (8.82%) ended in positive territory.

The BSE Oil & Gas index surged (6.97%) or 384.87 points to close at 5,906.46 as Reliance (9.57%), Aban Offshore (9.00%), Gail India (7.33%), Essar Oil Ltd (6.54%) and Cairn Ind (5.26%) ended in green.

The BSE Capital Goods index advanced by (4.51%) or 294.75 points to close at 6,824.14. Main gainers are Usha Martin (16.27%), Crompton Greaves (10.97%), Suzlon Energy (9.15%), Gammon Indi (6.90%), Thermax Ltd (5.96%) and BEML Ltd (5.76%).

The BSE Teck index went up by (4.31%) or 84.90 points to close at 2,053.28. Main gainers are Dish TV (16.21%), Tata Communication Ltd (13.77%), Reliance Communication Ltd (10.24%), Tel eighteen (9.88%), Wipro Ltd (9.80%) and Zee Ent (7.76%.

The BSE Auto index ended higher by (4.16%) or 94.14 points at 2,375.42. Gainers are Excorts Ltd (15.87%), Mahindra & Mahindra Ltd (15.47%), Tata Motors (7.30%), Bajaj Auto (5.20%), Bosch Ltd (4.55%) and Exide Industries (3.68%).