Pre Session Commentary - Feb 17 2009

Today domestic markets are likely to open negative on the back of yesterday’s poor interim budget effect. Further the other Asian markets have also opened with blood bath. The sentiments are likely to be bearish today as the investors would carry the resentment of yesterday’s poor interim budget. There is also no specific news to support the market sentiments. The worst macro economic data was the fiscal deficit that is hovering around 6% of the GDP, which the government may fill the gap through Market Stabilization Scheme and not through borrowing. There might be low volumes of trade during the day’s session and most likely it would follow the cues of the other markets’ movements.

On Monday, the markets opened with heavy losses as the investors were pessimistic about the interim budget and other Asian markets had opened with blood bath. The budget for FY09-10 could not bring cheers for the corporate as unlike anticipations there were no tax sops and stimulus package to revive the economy. Traders were expecting tax holidays for gas producers but nothing as such happened. Further fiscal deficit as a percentage to GDP was witnessed at 6% against 2.5% expected, which may horrify the foreign investors. The expected fiscal deficit to GDP for 2009-10 is also expected to hover around 5.5%, which is not a good figure. Sectors like Metal, Realty, Bankex, CG and Oil & Gas fell drastically by 4.75%, 4.58%, 4.58%, 4.55% and 4.23% respectively. Mid caps and Small caps fell 2.93% and 2.10% respectively. During the session we expect the markets to be trading negative.

The BSE Sensex closed low by 329.29 points at 9,305.45 and NSE Nifty ended with a loss of 99.85 points at 2,848.50. The BSE Mid Caps and Small Caps ended with losses of 88.20 points and 71.44 points at 2,924.75 and 3,324.14 respectively. The BSE Sensex touched intraday high of 9,637.04 and intraday low of 9,279.10.

On Monday, the US stock markets remained closed on the observance of Presidents Day.

Today major stock markets in Asia are trading in deep red. Shanghai composite is lower by 12.42 points to 2,376.97, Japan''s Nikkei is low by 100.72 points at 7,649.45. Hang Seng lost 425.87 points at 13,030.10, South Korea''s Seoul Composite is low by 31.52 points at 1,143.95 and Singapore''s Strait Times is lower by 21.06 points to 1,656.64.

The FIIs on Monday stood as net buyers in equity and debt. Gross equity purchased stood at Rs 1,319.20 Crore and gross debt purchased stood at Rs 93.40 Crore, while the gross equity sold stood at Rs 1,299.20 Crore and gross debt sold stood at Rs 0.00 Crore. Therefore, the net investment of equity and debt reported were Rs 20 Crore and Rs 93.40 Crore respectively.

On Monday, the Indian rupee closed at 48.82/83, 0.33% weaker than its previous close of 48.66/67. The rupee fell sharply as the domestic stock markets plummet on the opening of the interim budget session.

On BSE, total number of shares traded were 27.88 Crore and total turnover stood at Rs 2,908.21 Crore. On NSE, total number of shares traded were 61.75 Crore and total turnover was Rs 8,019.41 Crore.

Top traded volumes on NSE Nifty – Unitech with 90142597 shares, DLF with 24981766 shares, Suzlon Energy with 14925131 shares, Reliance Comm with total volume traded 10501311 shares followed by SAIL with 10090041 shares.

On NSE Future and Options, total number of contracts traded in index futures was 923550 with a total turnover of Rs 12,272.99 Crore. Along with this total number of contracts traded in stock futures were 1058098 with a total turnover of Rs 10,104.05 Crore. Total numbers of contracts for index options were 1473163 with a total turnover of Rs. 21,461.58 Crore and total numbers of contracts for stock options were 1473163 and notional turnover was Rs 21,461.58 Crore.

Today, Nifty would have a support at 2,772 and resistance at 2,818 and BSE Sensex has support at 9,118 and resistance at 9,242.