Post Session Commentary - Dec 15 2008

The domestic market ended the day in green terrain after paring some of earlier gains on profit booking after sharp rally. Earlier benchmark indices gathered huge buying momentum supported by the positive Asian markets along with expectations of a second fiscal stimulus package from the government and hopes of further interest rate cuts by the central bank to protect the domestic economy from the global economic recession. Positive sentiment was also supported by the fiscal package announced by the public sector banks for the reality sector.

The Indian market opened on positive note tracking firm cues from the global markets. Market did not reacted to the negative IIP numbers for the month of October, announced on December 12, on hopes of second fiscal sops and additional interest rate cuts by RBI. . In addition, the investors were eying on the rate cut by US FED and the bailout package for Auto giants. Further stocks continued to trade higher on strong buying momentum sustained across the board. Though market came off from the days’ high to reduce its gains, due to sell off on selective stocks across the counters. From the sectoral front, most of the indices ended in green and among those Reality and Metal stocks out performed the benchmark indices as ended with gains of more than 5% each. Apart from that, Consumer Durables, PSU, Oil & Gas, Capital Goods, Pharma and Auto stocks also supported the upsurge. Midcap and Smallcap stocks also continued to gain the momentum. However IT stocks remained out of favor as witnessed some of the selling from this basket.

Among the Sensex pack 23 stocks ended in green territory and 7 in red. The market breadth was positive as 1937 stocks closed in green while 555 stocks closed in red and 80 stocks remained unchanged.

The BSE Sensex closed higher by 142.32 points at 9,832.39 and NSE Nifty ended up by 59.85 points at 2,981.20. The BSE Mid Caps and Small Caps ended with good gains of 114.59 points and 128.13 points at 3,165.07 and 3,659.09 respectively. The BSE Sensex touched intraday high of 9,948.33 and intraday low of 9,749.29.

Gainers from the BSE Sensex pack are Grasim Industries (9.32%), Hindalco (5.86%), Sterlite Industries (5.07%), L&T Ltd (4.24%), Tata Steel (4.22%), ONGC Ltd (4.09%), ACC Ltd (3.87%), M&M Ltd (3.50%), HDFC Bank (2.72%), JP Associates (2.67%) and Tata Motors (2.60%).

Losers from the BSE Sensex pack are Reliance Communication Ltd (4.09%), TCS Ltd (2.62%), Tata Power (2.49%), Wipro Ltd (1.63%), HDFC (1.45%), SBI (0.84%) and Infosys Tech (0.57%).

The PSU banks have announced fiscal package including a number of measures to boost housing, micro, small and medium enterprises (MSME), and export sectors. The home loan rates for up to Rs 5 lakh should not be more than 8.5%. Interest on loans between Rs 5-20 lakh shares will be 9.25%. There will be no process and prepayment fees for home loans up to Rs 5 lakh. New home loans package will be valid till June 30, 2009. Apart from this, the banks would not charge any processing fees and pre payment charges for loans upto Rs 20 lakh and also provide free insurance cover. They have also decided to cut the lending rates for the micro and medium enterprises by 100 basis points.

The early advance tax numbers from large corporate houses like SBI, ICICI Bank and HDFC illustrate increased payout. The SBI’s Q3 advance tax stands at Rs1,700 crore as against Rs1,088 crore (YoY). HDFC’s advance tax stood at Rs279 crore versus Rs215 crore of corresponding period of previous year. ICICI Bank’s Q3 advance tax is at Rs470 crore against Rs500 crore (YoY).


The BSE Reality index ended up by (5.53%) or 117.69 points at 2,245.87. Major gainers are Housing Dev (16.65%), Orbit Co (12.95%), Ansal Infra (11.88%), Unitech Ltd (10.50%), Pheonix Mill (9.97%) and Omaxe Ltd (9.28%).

The BSE Metal index ended higher by (5.19%) or 273.34 points at 5,538.47 as Welspan Gujarat SR (21.06%), NMDC Ltd (10.52%), Sesa Goa Ltd (9.45%), Steel Authority (8.81%), Jindal Saw (8.07%) and JSW Steel (6.44%) ended in green.

The BSE Consumer Durables index advanced by (4.90%) or 85.41 points to close at 1,763.24. Main gainers are Gitanjali GE (7.11%), Blue Star L (5.95%), Videocon Ind (5.67%), Rajesh Export (5.16%) and Titan Ind (3.59%).

The BSE PSU index ended higher by (3.49%) or 164.71 points at 4,883.22 as Hindustan Copper (15.10%), MMTC Ltd (14.11%), NMDC Ltd (10.52%), Steel Authority (8.81%), Mahanagar Tele (8.22%) and State Trad Corp (7.14%) ended in positive territory.

The BSE Oil & Gas index surged (3.25%) or 199.59 points to close at 6,344.94 as Cairn Ind (8.25%), Reliance Petroleum (6.95%), Aban Offshore (5.51%), Reliance Natural Resources (5.38%), Gail India (4.38%) and Essar Oil Ltd (4.19%) ended in green.

The BSE Capital Goods index gained (3.18%) or 216.94 points to close at 7,044.48. Gainers are Siemens Ltd (11.41%), Jyoti Struct (9.97%), Areva (8.13%), Everest Kanto (7.09%), Walchand Industries (6.53%) and Elecon Eng C (4.94%).

The BSE IT index lost (0.22%) or (5.13%) points to close at 2,286.20 as HCL Tech (2.75%), TCS Ltd (2.62%), Wipro Ltd (1.63%), Infosys Tech (0.57%) and Patni Computer (0.22%) ended in red.