Post Session Commentary - Dec 8 2008

The domestic market ended the day in positive despite giving up some of its gains in final trade due to the profit booking at higher levels. Market exhibited a good show during the trading session on stimulus package by the government and rate cut by the central bank. Positive European markets along with higher US index futures also contributed to the rally. The Government of India has announced Rs 20,000-crore fiscal stimulus package on December 7. The government has cut 4% ad valorem cenvat rate on non-petroleum products and will provide additional Rs 1,400 crore for textile upgradation fund. Exporters will get 2% interest subvention up to March ''09. The Reserve Bank of India has cut repo rate by 100 bps to 6.5% and reverse repo rate by 100 bps to 5%, both rates got effective from today.

The Indian market belled the day in pleasant note along with other Asian markets. Further, market continued to trade in positive terrain on strong buying across the board. The markets today got a boost on the back of the economic stimulus package announced by the government yesterday and also by the RBI move of cutting rates. Though, concern over the capability of the government budget to finance the stimulus along with profit booking, cooled off the bullish trend during final trading and market ended off the days high. From the sectoral front Reality remained in limelight as ended with gain of more than 5%. Apart from that, most of the buying was seen in Teck, Metal, Power, Capital Goods, Consumer Durables, PSU and Bank stocks. Some buying was also observed in Smallcap stocks. However, Pharma stocks were not able to gain market favor. Midcap stocks were also unable to hold the initial gains and ended down.

Among the Sensex pack 27 stocks ended in green territory and 3 in red. The market breadth was positive as 1384 stocks closed in green while 1016 stocks closed in red and 91 stocks remained unchanged.

The BSE Sensex closed higher by 197.42 points at 9,162.62 and NSE Nifty ended up by 69.60 points at 2,784. The BSE Small Caps ended with gains of 19.66 points at 3,343.20 while BSE Mid Caps ended with losses 7.92 points at 2,885.03. The BSE Sensex touched intraday high of 9,432.11 and intraday low of 9,095.70.

Gainers from the BSE Sensex pack are DLF Ltd (8.71%), Tata Steel (7.22%), Bharti Airtel (5.34%), HDFC (5.21%), Reliance Communication Ltd (4.97%), Wipro Ltd (4.91%), Reliance Infra (4.02%), JP Associates (3.47%), NTPC Ltd (3.19%), ICICI Bank (3.17%) and SBI (2.88%).

Losers from the BSE Sensex pack are Mahindra & Mahindra Ltd (1.57%), Tata Motors (0.72%) and Satyam Computer (0.33%).

The BSE Reality index ended up by (5.27%) or 89.18 points at 1,781.37. Major gainers are DLF Ltd (8.71%), Unitech Ltd (6.66%), Anant Raj (3.51%), Mahindra Life (2.39%), Parsvnath (2.39%) and Ansal Infra (1.54%).

The BSE Metal index ended higher by (3.05%) or 141.49 points at 4,781.22 as Tata Steel (7.22%), Nalco (5.49%), NMDC Ltd (4.57%), JSW Steel (4.06%), Steel Authority (3.77%) and Gujarat NRE C (2.13%) ended in positive territory.

The BSE Consumer Durables index advanced by (2.78%) or 46.14 points to close at 1,704.91. Main gainers are Videocon Ind (3.77%), Blue Star L (3.65%), Titan Ind (2.58%), Gitanjali GE (1.61%) and Rajesh Export (0.41%).

The BSE Power index surged (2.78%) or 45.82 points to close at 1,694.41 as NEyveli LIG (7.45%), Lanco Infra (5.82%), Suzlon Energy (5.66%), ABB Ltd (4.77%) and Seimens Ltd (4.12%) ended in green.

The BSE Teck index went up by (2.66%) or 51.02 points to close at 1,968.38. Main gainers are Tata Communication Ltd (6.08%), Bharti Airtel (5.34%), Reliance Communication Ltd (4.97%), Wipro Ltd (4.91%), NDTV Ltd (4.72%) and Aptech Ltd (4.31%.

The BSE Pharma index ended marginally down (0.07%) or 1.99 points at 2,821.44. Losers are Glenmark Pharma (10.00%), Lupin Ltd (4.24%), Cipla Health (2.79%), Sunpha Adv (2.16%), Dishman Pharma (2.15%) and Wockhardt Ltd (2.03%).