Post Session Commentary - March 13 2009

Indian market extended its gain to more than 4% to close the day on a strong note on significant buying over the ground led by strong cues from the markets all over the world. Stocks on the domestic bourses witnessed sharp rally along with its other Asian peers. Sentiments got a boost on further ease in inflation for the week ended 28th Feb 2009, to around 7 years low of 2.43%. Firm US index futures along with positive European markets also contributed to the northward journey.

The domestic market opened on the positive note on the back of firm global cues. US stock markets on Thursday ended higher on the back of better-than-expected retail sales data, renewed buying interest in bellwether General Electric and positive comments from Bank of America''s CEO about the bank''s profitability. Benchmark indices continued to extend their gains on strong buying across the board. The markets maintained its upbeat move on the back of strong global markets and sign of recovery in domestic economy. Auto sales went up in past few months and interest rates are dropped. Sustained upward movement stopped up only on the closing of trading. BSE Sensex ended above 8,700 mark and NSE Nifty above 2,700 level. From the sectoral front, all indices ended in green. Among those, Auto, Bank, Oil & Gas, Metal, IT, FMCG and Capital Goods stocks contributed mostly to the strong rally. BSE Mid Cap and Small Cap stocks were also on buyers’ radar.

Among the Sensex pack 28 stocks ended in green territory and 8 in red. The market breadth indicating the overall health of the market remained strong as 1583 stocks closed in green while 854 stocks closed in red and 114 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 412.86 points at 8,756.61 and NSE Nifty ended up by 101.80 points at 2,719.25. BSE Mid Caps and BSE Small Caps ended with gains of 75.96 points and 56.79 points at 2,640.36 and 2,934.06 respectively. The BSE Sensex touched intraday high of 8,793.21 and intraday low of 8,480.74.

Gainers from the BSE Sensex pack are DLF Ltd (11.47%), Tata Motors (10.72%), Tata Power (9.18%), ICICI Bank (8.60%), Hindalco (7.99%), Sterlite Industries (7.93%), HDFC (7.53%), Tata Steel (6.89%), L&T Ltd (6.76%), Reliance (6.69%) and TCS Ltd (6.57%).

Losers from the BSE Sensex pack are NTPC Ltd (2.04%) and Sun Pharma (0.36%).

On the global markets front the Asian markets which opened before the Indian market, ended higher on expectations of a fresh stimulus measures in China and Japan. Japan announced today that it was planning a new 100-trillion-yen ($1.03 trillion) economic stimulus package. Hang Seng, Nikkei 225, and Straits Times index ended higher by 524.27, 371.03 and 83.99 points at 12,525.88, 7,569.28 and 1,577.52 respectively. However, Shanghai Composite lost 5.03 points at 2,128.85

European markets which opened after the Indian market are trading in green tracking Wall Street gains overnight. Market is witnessing decent buying led by banks and oil producers leading a broad-based advance. In London FTSE 100 is trading higher by 66.92 points at 3,778.91 and in Frankfurt the DAX index is trading down by 41.44 points at 3,997.66.

The BSE Reality index outperformed the benchmark indices and ended up by (7.57%) or 99.15 points at 1,408.56 on hopes lower rates will spur housing demand. Gainers are DLF Ltd (11.47%), Akruti City (9.27%), Mahindra Life (8.16%), Housing Dev (6.48%) and Indiabull Real (5.67%).

The BSE Metal index gained (6.26%) or 286.07 points to close at 4,852.53. Main gainers are JSW Steel (9.55%), NALCO (8.22%), Welspan Guajrat Sr (8.12%), Hindalco (7.99%) and Sterlite Industries (7.93%).

The BSE Bank index closed with increase of (5.15%) or 219.63 points at 3,973.85 on hopes lower interest rates may boost lending growth. Scrips that gained are Axis Bank (8.61%), ICICI Bank (8.60%), Bank of Boroda (7.17%), Indian Overseas Bank (6.65%) and IDBI Bank (6.46%).

The BSE IT stocks also joined the rally as advanced by (5.63%) or 116.79 points to close at 2,190.32. Main gainers are NIIT Ltd (9.52%), HCL Tech (7.19%), Oracle Fin (6.97%), TCS Ltd (6.57%) and Infosys Tech (5.64%).

The BSE Oil & Gas index ended higher by (4.71%) or 273.88 points to close at 6,088.52 as crude oil prices surged 11% on the New York Mercantile Exchange on Thursday. Aban Offshore (10.79%), Reliance Natural Resources (7.33%), Reliance (6.69%), Reliance Pet (6.44%) and Cairn Ind (3.98%) ended in positive territory.

The BSE Teck index gained (4.48%) or 73.19 points at 1,707.31. Gainers are Jagran Prak (11.33%), Sun TVNet (9.56%), NIIT Ltd (9.52%), Tel Eighteen (9.35%) and Tata Comm (9.07%).

Tata Motors gained 10.72% as entered into an understanding with State Bank of Travancore for financing its range of passenger vehicles. The finance facility will be available at all branches of the bank and also at Tata Motors 470 sales touch points.

Dr. Reddy''s increased by 3.33%. The Pharma Company received favorable summary judgment ruling in the Omeprazole Mg OTC litigation. US District Court (Southern District, New York) has granted a summary judgment that the Omeprazole Mg OTC ANDA filed by Dr. Reddy''s does not infringe the patents in suit related to Astra Zeneca’s Prilosec OTC.

Tata Communication ended higher by 9.07%. The company said on Thursday that it has raised $350 million in the form of debt and there is no liquidity problem in the company.

Reliance Industries Ltd advanced 6.69%, on reports the company has recommenced crude oil production from its predominantly gas-rich KG-D6 block.

Cairn India gained 3.98% to as crude oil prices surged 11% on the New York Mercantile Exchange on Thursday, 12 March 2009.

Wipro rose 5.87% after its unit won an outsourcing contract worth Rs. 1182.00 crore from an Indian government agency. The deal is for a period of six and half year.

Sun Pharma Industries lost 0.36% despite reports the company has secured US Food and Drug Administration (USFDA) approval to go ahead approval for anti-cancer injections.