Post Session Commentary - Jan 30 2009

The Indian market recovered from its earlier losses and closed with smart gains on sustained buying momentum across the sectors. Firm European markets boosted the sentiments and contributed to the sharp rebound. During initial trading, market had shown nervousness on weak global markets led by poor economic data. New-home sales in US tumbled 14.7% and initial jobless claims rose by 3000 to 5.88 lakh.

The domestic market today triggered a subdued start tracking weak cues from the markets all over the world. Most of the Asian markets were down due to a record crash in Japanese production and lower profit forecasts. Selling by foreign institutional investors also fueled anxiety among investors. Further, market started recovering since mid session as benchmark indices staged a rebound to the green zone from early low. Stocks continued to gain momentum and observed sharp rally till end on the back of intense buying seen in key stocks ahead of US GDP data. BSE Sensex ended crossed 9,400 level and NSE Nifty ended above 2,850 mark. From the sectoral front, most of the indices ended in green and among those most of the buying was seen in Reality, Metal, Oil & Gas, Bank, FMCG, Consumer Durables and Capital Goods stocks. Midcap and Smallcap stocks also followed the same trend. However, Pharma stocks remained under pressure as most of the selling was witnessed from its’ basket.

Among the Sensex pack 25 stocks ended in green territory and 5 in red. The market breadth indicating the overall health of the market, remained positive as 1377 stocks closed in green while 1015 stocks closed in red and 113 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 187.96 points at 9,424.24 and NSE Nifty ended up by 50.85 points at 2,874.80. Broader market indices were also in green as BSE Mid Caps and Small Caps ended with gains of 38.03 points and 35.64 points at 2,941.47 and 3,339.05 respectively. The BSE Sensex touched intraday high of 9,438.31 and intraday low of 9,087.36.

Gainers from the BSE Sensex pack are JP Associates (6.93%), DLF Ltd (7.39%), Hindalco (6.51%), SBI (5.05%), RCom (5.03%), Reliance Infra (4.85%), Maruti Suzuki (4.81%), Reliance (4.51%), L&T Ltd (4.38%) and Sterlite Industries (3.31%).

Losers from the BSE Sensex pack are Sun Pharma (6.10%), BHEL (2.60%), Tata Motors (0.60%), Infosys Tech (0.32%) and NTPC Ltd (0.24%).

On the global markets front, the Asian Markets ended mixed as Hong Kong’s Hang Seng closed higher by 123.78 points at 13,278.21 whereas, Nikkei 225, Straits Times and Seoul Composite ended down by 257.19, 20.25 and 4.45 points at 7,994.05, 1,746.48 and 1,162.11 respectively. Japan reported a record slump in its production and lower profit forecasts has increased worries among investors that the global recession is expanding. However the Shanghai and Taiwan markets remained shut today. Industrial output in Japan plunged at a seasonally adjusted 9.6% in December compared to November, breaking the previous month’s record decline of 8.5% and the economist’s expectations of a drop of 9%. However, Japan''s industrial production for the full year was down 3.4%.

The European Markets recovered its earlier losses and are trading firm as the DAX is up by 6.50 points at 4,434.58and FTSE 100 is higher 19.69 points at 4,2409.80.

The BSE Reality index rose after the weak start on hopes lower rates will spur housing demand as ended up by (4.32%) or 69.09 points at 1,668.08. Major gainers are Ansal Infra (14.59%), DLF Ltd (7.39%), Pheonix Mill (6.00%), Penland Ltd (5.56%), Indiabull Real (5.10%) and Orbit Co (4.72%).

The BSE Metal index supported the buying sentiment and ended higher by (4.05%) or 198.65 points at 5,110.14. Main gainers are Jindal Steel (13.71%), Hindalco (6.51%), Jai Corp Ltd (4.96%), Sesa Goa Ltd (4.57%), Steel Authority (3.95%) and Sterlite Industries (3.31%).

The BSE Oil & Gas index gained favour and closed with increase of (3.58%) or 215.83 points at 6,252.46. Scrips that gained are Aban Offshore (6.50%), Reliance Natural Recourses (4.58%), Reliance (4.51%), Reliance Pet (3.29%), ONGC Ltd (2.98%) and Indian Oil Corporation (2.43%).

The BSE FMCG index gained (2.04%) or 40.65 points to close at 2,032.69 on defensive buying despite worries that slowing economy would eat up the prospective orders as United Spr (12.62%), Dabur India (3.17%), Britania In (2.59%), ITC Ltd (2.36%) and HUL (1.81%) ended in green.

The BSE Bank index ended higher by (1.99%) or 95.59 points to close at 4,900.06 as fears of rising defaults in a weakening economy offset hopes of further fall in interest rates may boost lending growth. Oriental Bank (5.27%), SBI (5.05%), Bank of India (3.53%), Punjab National Bank (2.59%) and Federal Bank (2.34%) ended in positive territory.

The BSE Pharma index ended with losses as dropped by (0.50%) or 13.64 points at 2,713.84. Losers are Aurobindo Pharma (6.24%), Sun Pharma (6.10%), Orchid Chem (1.43%), Pfizer Ltd (1.15%) and Sunpha Adv (0.83%).

HCL Technologies ended higher by (5.41%). The company has bagged a multi-million dollar contract spread over five years from Nokia and involving providing global helpdesk as well as desktop management services through HCL’s delivery centres in Finland, Poland, China, the US and India.

Cairn India advanced by (2.36%). The company has posted a net profit of Rs. 451.2mn for the fiscal third quarter as against a net loss of Rs.543.1mn in the quarter ended December, 2007. On a consolidated basis, the company reported a net profit of Rs2.36bn for the third quarter compared to a net loss Rs139.1mn for the quarter ended December 2007.

Indian Oil Corporation gained (2.43%). The Company has posted a net profit of Rs 29585.90 million for the quarter ended December 31, 2008 as compared to Rs 20906.90 million for the quarter ended December 31, 2007. Total Income has increased from Rs 654048.40 million for the quarter ended December 31, 2007 to Rs 723517.50 million for the quarter ended December 31, 2008.

India''s Spice Group is ready to invest about Rs. 20 billion (USD408 million) in Satyam Computer Services and wants to buy a 51% stake in scam-hit Satyam Computer. The company has already submitted on Thursday its proposal to the government-appointed new board of Satyam.