Post Session Commentary - March 19 2009

Indian market today managed to end the volatile session just above the dotted line. Market recovered after touching the lowest in afternoon trade. Benchmark indices were mixed on news that the inflation fell to a historic lows. India’s inflation for the week ended March 7, has dropped to a historic low of 0.44% from 2.43% in the previous week. This is the lowest inflation rate since annual numbers in the current index started in 1995. Stocks exhibited volatility during the trading as were hovering between positive and negative terrain on fears of crises in Indian economy and on lower US index futures.

The market opened on firm note tracking positive cues form the US markets. The US stock markets on Wednesday continued its upward rally as investors were cheered by the Federal Reserve’s plan to buy nearly $1.25 trillion bonds. Further, stocks turned volatile and pared off gains on some profit booking. Additional, the all time low inflation data has caused concerns of deflation in near future. Instable market once again reported recovery during final trading hours backed by firm European markets. At the end, market pulled down its shutters in green on buying in key stocks. BSE Sensex ended around 9,000 level and NSE Nifty around 2,800 level. From the sectoral front, buying sentiments was emerged mainly in Reality, IT, Teck, Oil & Gas, Bank and Metal stocks. Further, BSE Mid Cap and Small Cap stocks were also in buyer’s radar. However, Capital Goods, Auto, FMGC and Consumer Durables stocks remained out of favor.

Among the Sensex pack 19 stocks ended in green territory, 10 in red and 1 remained unchanged. The market breadth indicating the overall health of the market remained strong as 1354 stocks closed in green while 1105 stocks closed in red and 102 stocks remained unchanged in BSE.

The BSE Sensex closed marginally higher by 25.07 points at 9,001.75 and NSE Nifty ended up by 12.45 points at 2,807.15. BSE Mid Caps and BSE Small Caps ended with gains of 14.22 and 33.05 points at 2,774.12 and 3,097.53 respectively. The BSE Sensex touched intraday high of 9,086.77 and intraday low of 8,900.39.

Gainers from the BSE Sensex pack are Sterlite Industries (4.18%), HDFC (2.53%), Sun Pharma (2.33%), Maruti Suzuki (1.70%), TCS Ltd (1.62%), NTPC Ltd (1.57%), Infosys Tech (1.44%), JP Associates (1.26%), DLF Ltd (1.11%), Reliance (1%) and ONGC Ltd (0.97%).

Losers from the BSE Sensex pack are L&T Ltd (4.14%), BHEL (3.15%), Tata Motors (2.75%), RCom (2.03%), M&M Ltd (1.89%), Tata Steel (1.76%) and HDFC Bank (1.78%).

India’s inflation has fallen to a historic low of 0.44% for the week ended March 7 from 2.43% in the previous week. This is the lowest inflation rate since annual numbers in the current index started in 1995. This was mainly due to the base effect and also due to the economic slowdown. Wholesale Price Index for all commodities was down 0.4% at 226.7 in the week under consideration compared to 227.7 in the preceding week. It was the lowest annual reading in the history of the current series.

On the global markets front the Asian markets which opened before the Indian market, ended mostly higher on U.S. Federal Reserve''s $1.2 trillion spending plan that raised optimism to bring a quicker end to the worst global slowdown in decades. Shanghai Composite, Hang Seng and Straits Times index ended higher by 42.03, 13.75 and 8.92 points at 2,265.76, 13,130.92 and 1,584.86 respectively. However, Nikkei 225 and Seoul Composite lost 26.21 and 8.14 points at 7,945.96 and 1,161.81 respectively.

European markets which opened after the Indian market are trading in green. In Frankfurt the DAX index is trading up by 36.42 points at 4,032.74 and in London FTSE 100 is trading higher by 31.17 points at 3,836.16.

The BSE Reality ended up by (2.48%) or 39.22 points at 1,596.27 on hopes lower rates will spur housing demand. Gainers are Akruti City (10.70%), Indiabull Real (3.81%), Mahindra Life (1.76%), Penland Ltd (1.75%) and Unitech Ltd (1.31%).

The BSE IT stocks also witnessed rally as advanced by (1.58%) or 34.47 points to close at 2,219.23 on hopes of revival in the US economy, the biggest market for IT firms. Major gainers are NIIT Ltd (15.86%), Oracle Fin (6.38%), Aptech Ltd (5.78%), Rolta India (3.66%) and Patni Computer (3.42%).

The BSE Teck index closed with increase of (0.83%) or 14.41 points at 1,745.80. Scrips that gained are NIIT Ltd (15.86%), Him Futr Com (9.96%), Oracle Fin (6.38%), Aptech Ltd (5.78%) and UTV Software (3.89%).

The BSE Oil & Gas index ended higher by (0.74%) or 46.73 points to close at 6,355.25. Aban Offshore (4.48%), Cairn Ind (1.09%), Reliance (1%), ONGC Ltd (0.97%) and Reliance Pet (0.30%) ended in positive territory.

The BSE Capital Goods index tumbled (2.62%) or 159.43 points to close at 5,924.97. Main losers are L&T Ltd (4.14%), BHEL (3.15%), Crompton Greaves (2.46%), Usha Martin (2.21%) and Gammon Indi (1.64%).

The BSE Auto index lost (0.71%) or 20.47 points to close at 2,870.08 on fears that slow consumer spending may Bajaj Auto (2.44%) and Ashok Leyland (2.21%).

UTV Software Communications surged 3.89% on reports that the UTV group is planning to raise Rs. 100-125 crore from a strategic stake sale of its English news channel UTVi.

Satyam Computer gained 1.03% on report that the Company received a fresh order from a food company based in Europe. In the latest development, the Board has placed norms for the winner of the bid, including no sale of the company''s assets for 3 years, not to pledge them to raise debt, no sudden lay-off of employees and should hold enough cash to infuse immediately,

Cairn India inclined 1.05% as crude oil prices rose more than 2% in Asian electronic trading on Thursday, 19 March 2009. Rise in crude oil prices would result in higher realizations from crude sales for the oil exploration firms.

Ramsarup Industries ended up by 9.84%. The Company has bagged orders aggregating Rs 164 crores under RGGVY Electrification Work from West Bengal State Electricity Distribution Company Ltd.