Post Session Commentary - Dec 11 2008

The domestic market ended with marginal losses after showing some recovery, on selling pressure led by weak global cues. Investors’ ignored further decline in inflation to 8% for the week ended 29th November 2008, and took calculative steps on concern of weakening domestic and global economy. Negative European markets also fueled to the negative sentiments. According to RBI’s governor D Subbarao, the next two years would be very critical for the country. On 10th December 2008, he indicated that RBI''s projection of 7.5% to 8% economic growth for the current fiscal year may be revised downwards when RBI reviews the annual policy for 2008-09 in January 2009.

The Indian market belled the day marginally higher but tuned choppy soon after start. Further, market continued to trade with volatility throughout of the session ahead of IIP data for the October 2008, due to be released on 12th December. The market tried to recuperate during afternoon session on as stocks recovered in Japan on hopes of aggressive rate cuts and government actions around the world to limit the depth of global recession. The benchmark indices fell further as selling pressure intensified in some of the front liners that led market to close in red territory. From the sectoral front most of the selling pressure was led by IT, Consumer Durables, Teck, Pharma and PSU stocks. However Reality, Oil & Gas, Metal, Bank and Auto stocks were able to gain market favor. Midcap and Smallcap stocks were also on buyer’s radar.

The State owned banks are planning to cut rates on small ticket home loans up to 300 basis points as RBI considers ways to help the banking sector to make small home loans at cheaper rate and is also looking at the option of relaxing norms for this.

Inflation for the week ended 29th November 2008, stood at 8% as compared to 8.4% of the previous week. It was 3.89% during the corresponding week last year. Inflation rate for primary articles, which has a weight of 22% in the index number fell to 11.66% in the reported week as compared to 11.98% in the previous week.

Among the Sensex pack 18 stocks ended in red territory and 12 in green. The market breadth was positive as 1557 stocks closed in green while 911 stocks closed in red and 97 stocks remained unchanged.

The BSE Sensex closed marginally lower by 9.44 points at 9,645.46 and NSE Nifty ended slightly down by 8.10 points at 2,920.15. The BSE Mid Caps and Small Caps ended with gains of 54.84 points and 48.14 points at 3,003.08 and 3,443.59 respectively. The BSE Sensex touched intraday high of 9,746.01 and intraday low of 9,441.97.

Losers from the BSE Sensex pack are TCS Ltd (6.24%), Satyam Computer (5.18%), Wipro Ltd (4.45%), Hindalco (4.38%), Infosys Tech (3.23%), BHEL (2.75%), DLF Ltd (2.28%), ONGC Ltd (1.77%), Tata Motors (1.56%) and Grasim Industries (1.42%).

Gainers from the BSE Sensex pack are JP Associates (10.63%), Sterlite Industries (8.43%), Reliance Communication Ltd (4.80%), ACC Ltd (2.81%), Reliance (2.58%), ICICI Bank (1.58%), Bharti Airtel (0.89%), SBI (0.75%) and Reliance Infra (0.41%).

The BSE IT index ended down (3.90%) or 95.78 points at 2,359.20. Losers are TCS Ltd (6.24%), Satyam Computer (5.18%), Financ Tech (4.74%), Wipro Ltd (4.45%), Tech Mahindra (3.28%) and Infosys Tech (3.23%).

The BSE Consumer Durables index dropped by (2.62%) or 45.65 points to close at 1,693.45. Main losers are Gitanjali GE (8.77%), Titan Ind (4.98%) and Videocon Ind (0.25%).

The BSE Teck index ended down by (1.38%) or 28.35 points at 2,024.93 as TCS Ltd (6.24%), Satyam Computer (5.18%), Financ Tech (4.74%), Wipro Ltd (4.45%), Infosys Tech (3.23%) and Infosys Tech (3.13%) ended in red.

The BSE Reality index ended up by (2.12%) or 42.49 points at 2,047.58. Major gainers are Anant Raj (19.95%), Indiabull Real (10.77%), Penland Ltd (8.08%), Pheonix Mill (6.67%), Sobha Dev (4.91%) and Orbit Co (4.47%).

The BSE Oil & Gas index surged (1.67%) or 98.53 points to close at 6,004.99 as Reliance Natural Resources (25.93%), Reliance Petroleum (8.74%), Aban Offshore (8.03%), Essar Oil Ltd (7.49%) and Reliance (2.58%) ended in green.

The BSE Metal index ended higher by (1.37%) or 71.19 points at 5,253.11 as Sterlite Industries (8.43%), Welspan Gujarat SR (5.61%), Sesa Goa Ltd (2.22%), Jai Corp Ltd (2.19%) and Ispat Industries (1.36%) ended in positive territory.