Post Session Commentary - Jan 29 2009

The Indian market ended slightly lower on the last day of expiry of the derivatives contracts, but financials rose after a cut in fuel prices strengthened hopes for lower rates. Rise in inflation number for the second consecutive week to 5.64% for the week ended 17th Jan 2008 also fueled the negative sentiments. The news of US Congress will pump in $825 billion stimulus spending package and other efforts to debug the financial crisis, failed to sustain the hold.

The domestic market today opened higher for the third successive session tracking firm cues from the markets all over the world on the back of approval of $819 billion economic stimulus bill by the US House of Representatives. But the markets turned choppy soon after start ahead of January F&O series expiry today along with inflation data announcement. Further, market turned lower after the inflation number rose for the second consecutive week. Stocks continued trade in red terrain amid volatility till end on sustained selling pressure led by selling in European markets and US futures. BSE Sensex ended below 9,250 level along with NSE Nifty ended below 2,850 mark. From the sectoral front, Reality, Capital Goods, Power and Consumer Durables remained under pressure. Midcap and Smallcap stocks also lost ground during the trading session. However, Auto, IT, Metal and Bank stocks were in limelight as observed most of the buying from these baskets.

Among the Sensex pack 16 stocks ended in red territory and 14 in green. The market breadth indicating the overall health of the market, remained negative as 1262 stocks closed in red while 1148 stocks closed in green and 96 stocks remained unchanged in BSE.

The BSE Sensex closed marginally lower by 21.09 points at 9,236.28 and NSE Nifty ended down by 25.55 points at 2,823.95. Broader market indices were also down as BSE Mid Caps and Small Caps ended with losses of 11.36 points and 1.57 points at 2,903.44 and 3,303.41 respectively. The BSE Sensex touched intraday high of 9,379.68 and intraday low of 9,164.96.

Losers from the BSE Sensex pack are DLF Ltd (7.15%), Bharti Airtel (3.12%), Wipro Ltd (3.33%), BHEL (2.72%), RCom (2.61%), L&T Ltd (1.65%), Ranbaxy Lab (1.64%), SBI (1.22%) and Sun Pahrma (1.18%).

Gainers from the BSE Sensex pack are JP Associates (5.06%), Maruti Suzuki (4.67%), M&M Ltd (4.23%), Tata Steel(3.65%), Hindalco (3.48%), Tata Motors (2.59%) and Infosys Tech (1.90%).

The government yesterday after the market hours has reduced the prices of petrol by Rs. 5 per litre, diesel by Rs 2 per litre, and LPG by Rs 25 per cylinder marking the cut fuel prices by the government for the second time in two months. The fuel price cut will come into effect from January 29.

India''s wholesale price index rose to 5.64% for the week ended January 17 2008, as against 5.6% in the previous week. Economists expected to come in at around 5.40%. The wholesale price index for all commodities is up 0.2% at 230.5 (WoW).

On the global markets front, the Asian Markets ended higher following positive cues from US markets. US House of Representatives approved an $819 billion stimulus bill that investors hope will help lift the American economy out of its worst crisis in decades. Hang Seng, Nikkei 225, Straits Times and Seoul Composite index ended up by 575.83, 144.95, 0.64 and 8.58 points at 13,154.43, 8,251.24, 1,766.72 and 1,166.56 respectively.

The European Markets are trading in red as the DAX is down by 46.33 points at 4,472.39 and FTSE 100 is lower 70.87 points at 4,244.33.

The BSE Reality index fell on reports that falling interest rates have failed to revive housing demand as ended down by (2.77%) or 45.49 points at 1,598.99. Major losers are DLF Ltd (7.15%), Omaxe Ltd (5.48%), Anant Raj (4.99%), Ansal Infra (4.25%), Housing Dev (2.81%) and Akruti City (1.83%).

The BSE Capital Goods index also remained out of favour and closed with decrease of (2.01%) or 125.85 points at 6,148.16. Scrips that lost are ABB Ltd (5.01%), Siemens Ltd (3.64%), Reliance Indus Infra (3.23%), Alstom Proje (3.15%), Suzlon Energy (2.72%) and BEML Ltd (2.41%).

The BSE Power index tumbled (1.27%) or 23 points to close at 1,788.40 as ABB Ltd (5.01%), GMR Infra (2.73%), Siemens Ltd (3.64%), BHEL (2.72%), Suzlon Energy (2.72%) and Neyveli LIG (2.02%) ended in red.

The BSE Auto index ended higher by (1.34%) or 32.68 points to close at 2,473.26 after the government cut fuel prices. Bharat Forge (7.13%), Maruti Suzuki (4.67%), M&M Ltd (4.23%), Bajaj Auto (2.77%), Tata Motors (2.59%) and MRF Ltd (1.99%) ended in positive territory.

The BSE IT index ended with handsomer gains as advanced by (1.04%) or 22.96 points at 2,228.84. Gainers are Aptech (9.36%), Rolta India (4.89%), Patni Computers (4.61%), Tech Mahindra (2.95%), Infosys Tech (1.90%) and TCS Ltd (0.45%).

The BSE Metal index supported the buying sentiment and ended higher by (0.44%) or 21.52 points at 4,901.49. Main gainers are Jai Corp Ltd (4.96%), Tata Steel (3.65%), Hindalco (3.48%) and JSW Steel (1.81%).

Maruti Suzuki is ended higher by 4.67%. The company has posted a net profit of Rs 2135.70 million for the quarter ended December 31, 2008 as compared to Rs 4670.40 million for the quarter ended December 31, 2007. Total Income has decreased from Rs 48448.00 million for the quarter ended December 31, 2007 to Rs 48035.00 million for the quarter ended December 31, 2008.

Life Insurance Corporation (LIC) has decided to put in Rs 17,000 crore in the equity market during the January-March 2009 period. The life insurance major is targeting investments worth Rs 40,000 crore into equities in the current financial year. LIC had disbursed over Rs 30,000 crore as corporate loans during the April-December 2009 period and the corporation expects the momentum to continue during the current quarter. Many corporates have chosen to seek funding from LIC to meet their fund requirements.