Post Session Commentary - Dec 4 2008

The domestic market today reported handsome gains due to the further fall in inflation numbers to 8.40% for the week ended 22nd November 2008 that raised strong hopes of rate cut. Market is also expecting around Rs.15,000 crore by the government to support infrastructure sector along with measures for the housing, auto and export sectors. Benchmark indices sparked mostly after mid session on strong buying interest. Positive cues from the equity markets across Europe also added to the sentiments. BSE Sensex breached 9,000 mark and extended gains to more than 5%. Along with this, NSE Nifty extended gains to more than 4% and crossed 2,700 level

Market opened slightly higher but suddenly turned choppy. Further market managed to gain ground and took sharp turn form days low on strong buying witnessed among the selective scrips. Stocks extended their gains and continued to add momentum on eased inflation and hopes of stimulus package. From the sectoral front, all indices ended in green and Realty stocks were back in action as ended with increase of more than 12% on expectaion of stimulus package for the sector as the sector was severely hit by the effect of financial crisis and high interest rates. Apart from that, most of the buying was seen in Metal, Capital Goods, Oil & Gas, Power, Bank and PSU stocks. Midcap and Smallcap stocks were also on buyers radar.

Among the Sensex pack all 30 stocks ended in green territory. The market breadth was positive as 1503 stocks closed in green while 668 stocks closed in red and 60 stocks remained unchanged.

The BSE Sensex closed higher by 482.32 points at 9,229.75 and NSE Nifty ended up by 131.55 points at 2,788. The BSE Mid Caps and BSE Small Caps ended with gains of 92.21 and 66.70 points at 2,992.80 and 3,331.80 respectively. The BSE Sensex touched intraday high of 9,245.06 and intraday low of 8,726.71.

Gainers from the BSE Sensex pack are Tata Steel (13.84%), JP Associates (13.77%), Tata Motors (13.29%), DLF Ltd (11.28%), Sterlite Industries (9.90%), ICICI Bank (8.75%), Reliance (8.40%), L&T Ltd (8.32%), Reliance Infra (7.46%),BHEL (6.93%), HDFC (6.76%), ACC Ltd (6.60%), SBI (6.55%) and Tata Power (5.57%).

There is no loser from the BSE Sensex pack.

Inflation rate stood at 8.40% for the week ended November 22 2008, against 8.84% in the previous week. Inflation slipped for the fourth week in a row due to a fall in prices of petroleum fuels. The decline has raised hopes for further cut in key rates by the RBI. The annual inflation rate was 3.11 percent during the corresponding week the previous year.

The government is expected to reveal a motivation package on December 07 2008, for housing, auto and export sectors and announce Rs 15,000 crore as budgetary support for infrastructure sector. The package may include a Rs 2,000 crore package for exporters, cut in excise duty on commercial vehicles and line of credit for housing and auto.

The BSE Reality index ended higher by (12.44%) or 193.96 points at 1,753.65. Major gainers are Anant Raj (20.00%), Housing Dev (18.47%), Orbit Co (18.20%), Unitech Ltd (15.46%), Parsvnath (12.46%) and Housing Dev (11.28%).

The BSE Metal index surged (7.93%) or 352.87 points to close at 4,803.91. Gainers are JSW Steel (19.50%), Tata Steel (13.84%), Welspan Gujarat SR (11.33%), Sterlite Industries (9.90%), Steel Authority (9.03%) and Jai Corp Ltd (6.27%).

The BSE Capital Goods index went up by (6.91%) or 420.40 points to close at 6,506.98. Gainers are Suzlon Energy (10.24%), Praj Industries (8.93%), L&T Ltd (8.32%), Usha Martin (7.95%), Alstom Proje (7.72%) and Walchand In (7.27%).

The BSE Oil & Gas index advanced by (5.86%) or 314.77 points to close at 5,682.68. Major gainers are Reliance (8.40%), Reliance Natural Resources (6.60%), Aban Offshore (3.60%), ONGC Ltd (3.48%), Cairn Ind (3.40%) and Reliance Petroleum (3.37%).

The BSE Power index gained (5.70%) or 90.38 points to close at 1,676.43 as GMR Infra (12.08%), Suzlon Energy (10.24%), Lanco Infra (10.08%), Reliance Infra (7.46%), BHEL (6.93%) and Crompton Greaves (6.30%) ended in green.

The BSE Bank index ended up by (5.64%) or 256.36 points at 4,803.37 as Yes Bank (10.91%), ICICI Bank (8.75%), Kotak Bank (8.01%), Indus Ind Bank (7.38%), SBI (6.55%) and Axis Bank (5.14%) ended in positive territory.