Post Session Commentary - Feb 12 2009

Sustained selling across the sectors pulled the market to close in red zone for the second successive day tracking the weak cues from the global markets. Weak Asian markets along with poor start of the European markets and lower US index futures weighed on the sentiments. Besides this, the sharp fall in IIP data also added to the sentiments. The industrial output for the month of December 2008 fell 2% as compared to a rise of 8% (YoY). However, the sharp fall in inflation number to 4.39% for the week ended 31st Jan 2009 from 5.07% failed to bring any respite today.

The Indian market today opened lower tracking weak Asian stocks. Further benchmark indices continued to trade in red terrain without any sign of recovery. Investors were cautious ahead of IIP data and inflation number. Stocks tried to recover during mid session. However, market was not able to extend the momentum and lost further ground despite ease in inflation number. During the second half of trading session equities slipped sharply lower to extend their losses on the back of strong selling pressure. BSE Sensex ended below 9,500 mark and NSE Nifty closed below 2,900 level. On the sectoral front, IT, Teck, Oil & Gas, Capital Goods, Bank and FMCG stocks witnessed most of the selling from these baskets. However, Midcap and Smallcap stocks were able gain favour from the market. along with this Reality and Auto stocks also remained supportive as observed most of the buying from these baskets.

Among the Sensex pack 22 stocks ended in red territory and 8 in green. The market breadth indicating the overall health of the market remained strong as 1309 stocks closed in green while 1090 stocks closed in red and 113 stocks remained unchanged in BSE.

The BSE Sensex closed lower by 152.71 points at 9,465.83 and NSE Nifty ended down by 32.65 points at 2,893.05. Broader market indices were in green as BSE Mid Caps and Small Caps ended with gains of 2.97 points and 23.82 points at 2,968.11 and 3,374.79 respectively. The BSE Sensex touched intraday high of 9,580.13 and intraday low of 9,445.54.

Losers from the BSE Sensex are JP Associates (4.76%), Ranbaxy Lab (3.82%), Bharti Airtel (3.52%), Infosys Tech (3.39%), ICICI Bank (3.24%), Maruti Suzuki (2.99%), Tata Steel (2.55%) and BHEL (2.51%).

Gainers from the BSE Sensex pack are M&M Ltd (6.86%), DLF Ltd (3.58%), Reliance Infra (1.57%), Sun Pharma (0.84%) and Hindalco (0.33%).

The inflation for the week ended January 31, 2009 slipped to 4.39% from 5.07% of the previous week. This is the lowest rise since January 12 last year, when inflation was at 4.36%. The WPI numbers for all commodities are down 0.7% at 228.4 (WoW) except for the fuel products group, which is down 3.1% (WoW). The annual Inflation rate was 4.74 per cent during the corresponding week of the previous year.

The industrial output for the month of December 2008 fell 2% as compared to a rise of 8% (YoY). The sharp decline in the IIP number was mainly due to the fall in the manufacturing output as it registered a negative growth of 2.5% against a rise of 8.6% YoY and consumer durables that fell as much as 12.8% against a rise of 2.8% YoY.

On the global markets front, the Asian markets ended lower as investors remained dubious about the U.S. economic stimulus plan. Shanghai Composite index, Hang Seng, Nikkei 225, Straight Times index and Seoul Composite index ended down by 12.73, 310.91, 240.58, 37.01 and 10.34 points at 2,248.9, 13,228.3, 7,705.33, 1,684.96 and 1,179.84 respectively. Bank of Korea cut interest rate to a record-low 2%.
European markets which opened after the Indian market are trading in negative. In London FTSE 100 is trading lower by 48.44 points at 4,185.82 and in Frankfurt the DAX index is trading down by 90.91 points at 4,439.18.

The BSE IT index closed with losses of (2.46%) or 54.77 points at 2,170.96 on weak sentiments. Scrips that lost are Infosys Tech (3.39%), Patni Computer (2.88%), Oracle Fin (1.84%), Rolta Ind (1.46%) and TCS Ltd (0.94%).

The BSE Teck index ended down by (2.27%) or 41.85 points to close at 1,805.40. Dish TV (3.73%), Bharti Airtel (3.52%), Balaji Tele (3.40%), Infosys Tech (3.39%) and Patni Comp (2.88%) ended in negative territory.

The BSE Oil & Gas index also ended down by (1.85%) or 120.88 points at 6,409.93. Losers are Reliance (2.34%), ONGC Ltd (1.73%), Gail India (1.65%), Cairn Ind (1.36%) and Rel Pet (1.04%).

The BSE Capital Goods stocks as ended lower by (1.30%) or 84 points at 6,388.95. Scrips that lost are Bharat Elect (3.76%), Alstom Proje (2.80%), Everest Kant (2.53%), BHEL (2.51%) and Praj Industries (2.41%)

The BSE Bank index plunged by (1.15%) or 57.34 points at 4,916.55. Main losers are ICICI Bank (3.24%), IDBI Bank (2.30%), Yes Bank (1.49%), PNB (1.03%) and Kotak Bank (0.85%).

The BSE Reality index advanced by (1.30%) or 20.4 points to close at 1,556.69 on hopes the forthcoming interim budget may include sops to the housing sector. Anant Raj (4.99%), Akruti City (4.51%), DLF Ltd (3.58%), Ansal Infra (2.91%) and Orbit Co (2.50%) ended in green.

Tata Communication ended lower by 1.54% after announcing a $430 million strategic investment plan in Asia Pacific region. The investments include developing Tata Communications Exchange, a new Internet Data Center and completion of the main segment of its TGN-Intra Asia Cable System. These investments are being made in line with the company''s $2 billion expansion plan over three years to enhance its global infrastructure.

ONGC Ltd fell 1.73% as the company has reportedly cuts its crude oil price projection and forecast that its net profit in the year ending March 2010 will fall by 35% due to the drop in international prices of oil.

Cairn India declined 1.36%, as crude oil prices plunged over 4% on the New York Mercantile Exchange on Wednesday, 11 February 2009.

Siemens rose 2.21%, on bagging an order worth Rs. 212 crore. Siemens'' Industrial Solutions (IS) division, part of its Industry Sector, has bagged a turnkey order worth Rs. 2116 million (212 crore) from Steel Authority of India Ltd (SAIL) for Rourkela Steel Plant (RSP).