Post Session Commentary - March 25 2009

Markets closed the highly volatile session in green terrain on significant buying across the sectoral indices. The Realty (6.32%), Oil & Gas (3.66%), the Metal (3.31%) and Bankex (3%) indices led the rally on expectations of easing of the monetary policy by the Central bank due to the easing of the inflation to less than 1%. In addition, the markets greeted the US Federal Reserve plan to buy bank’s toxic assets. Though, volatility gripped the domestic bourses during the trading ahead of the expiry of March 2009 derivatives contracts on 26th March 2009. During afternoon, market came off the high on some profit booking after smart gain in domestic stocks.

The market opened today on flat note as there was lack of cues from the global markets. The US stock markets closed lower on Tuesday and Asian markets were trading slightly mixed in early trading. However, soon after start domestic market gained some grounds, as buying witnessed among the selective scrips. Further, benchmark indices pared gains after reaching upbeat, tracking US index futures that slipped into red. Though, market bounced back once again as US index futures regained positive movement. Finally, market climbed to the day’s high during final trading on healthy buying interest observed over the ground. BSE Sensex ended above 9,650 level and NSE Nifty closed above 2,950 level. From the sectoral front, most of the indices ended in positive. Besides, strong buying was seen in Reality, Oil & Gas, Metal, Bank, Capital Goods, Power and
IT stocks. Mid Cap and Small Cap stocks also gathered some favor during the trading session. However, PSU stocks witnessed selling from its basket.

Among the Sensex pack 22 stocks ended in green territory and 8 in red. The market breadth indicating the overall health of the market remained positive as 1263 stocks closed in green while 1219 stocks closed in red and 104 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 196.86 points at 9,667.90 and NSE Nifty ended up by 45.65 points at 2,984.35. BSE Mid Caps and Small Caps closed with gains of 21.09 and 10.01 points at 2,841.17 and 3,165.46 respectively. The BSE Sensex touched intraday high of 9,706.47 and intraday low of 9,430.45.

Gainers from the BSE Sensex pack are JP Associates (7.51%), Tata Power (7.12%), Sterlite Industries (6.18%), DLF Ltd (6.22%), Reliance Infra (5.84%), Reliance (5.63%), Tata Steel (4.11%), RCom (3.96%) and HDFC Bank (3.60%).

Losers from the BSE Sensex pack are NTPC Ltd (2.77%), Bharti Airtel (2.05%), ONGC Ltd (2.02%), HUL (1.88%), Tata Motors (1.27%), Ranbaxy Lab (0.76%) and Sun Pharma (0.68%).

Prime Minister Manmohan Singh will meet the industry leaders on March 28 to review the economic situation amid India Inc urging the government to seek poll panel waiver for key infrastructure projects. The Prime Minister, who is likely to seek their suggestions for restoring the growth momentum witnessed in the past four years, corporate sources said, has invited the heads of FICCI along with Assocham and CII and other industry leaders.

On the global markets front the Asian markets which opened before the Indian market, ended mostly lower. Shanghai Composite, Hang Seng, Nikkei 225 and Straits Times index ended higher by 46.86, 288.23, 8.31 and 14.66 points at 2,291.55, 13,622.11, 8,479.99 and 1,691.68 respectively. However, and Seoul Composite gained 7.32 points at 1,229.02. Japan''s exports fell to record low in February from a year earlier. Exports dropepd 49.4% from the previous year, the sharpest fall since the Ministry of Finance began compiling comparable data in 1980.

European markets which opened after the Indian market are trading in red. In Frankfurt the DAX index is trading down by 10.66 points at 4,176.70 and in London FTSE 100 is trading higher by 20.67 points at 3,890.79.

The BSE Reality outperformed the benchmark indices as ended up by (6.32%) or 100.6 points at 1,691.67 on hopes lower rates will spur housing demand. Gainers are Unitech Ltd (16.70%), Housing Development (8.73%), Mahindra Life (8.38%), DLF Ltd (6.22%) and Parsvnath (5.21%).

The BSE Oil & Gas index gained (3.66%) or 248.03 points to close at 7,020.86 as the government issued oil bonds worth Rs. 10,000 crore to oil marketing companies for under-recoveries on the sale of petroleum products. Gainers are Reliance (5.63%), Reliance Pet (5.16%), Cairn Ind (3.83%), Gail India (3.57%) and Reliance Natural Resources (3.54%).

The BSE Metal index closed with increase of (3.31%) or 179.43 points at 5,604.70. Scrips that gained are Welspan Gujarat SR (14.56%), Sterlite Industries (6.48%), Tata Steel (4.11%), JSW Saw (4.10%) and Steel Authority (3.96%).

The BSE Bank stocks advanced by (3%) or 132.77 points to close at 4,552.44 on expectations of lowering interest rates that will result in boosting liquidity into the market. Major gainers are Punjab National Bank (8.57%), Axis Bank (6.84%), HDFC Bank (3.60%), Kotak Bank (3.54%) and ICICI Bank (3%).

The BSE Capital Goods index surged (1.85%) or 110.52 points to close at 6,094.91. Main gainers are Aiaengineer (9.78%), Usha Martin (8.23%), Suzlon Energy (5.03%), ABB Ltd (4.37%) and BHEL (2.70%).

The BSE Power index also ended higher by (1.68%) or 29.84 points to close at 1,810.37. GMR Infra (8.67%), Tata Power (7.12%), Reliance Infra (5.84%), Lanco Infra (5.05%) and Suzlon Energy (5.03%) ended in positive territory.

Novartis India surged 19.99% after Swiss parent Novartis AG made an open offer to buy an additional 39% stake in its Indian unit at Rs. 351 per share, a 6.14% premium over the current market price.

HDFC gained 2.10%. The country largest mortgage player has cut its prime-lending rate by 50 bps to 14% for the current and new customers. The new rate would be effective from March 25. HDFC in the past three months has cut its prime-lending rate by 100 bps.

Indian Oil Corporation Ltd surged 0.59%. It has informed that the Ministry of Corporate Affairs has sanctioned the Scheme of Amalgamation for merger of Bongaigaon Refinery & Petrochemicals Ltd (BRPL) (a subsidiary of IndianOil) with Indian Oil Corporation Ltd under Section 391(2) read with Section 394 of the Companies Act, 1956.

ICICI Bank gained 3%. The bank is looking at mobilizing Rs 1,200 crore through the issue of upper tier-II bonds, which carry a coupon rate of 9.95 per cent and have tenure of 15 years with a call option after 10 years. The issue has a green shoe option of Rs 300-crore.

Tata Communications ended with increase of 2.13%. The company said had received amount of Rs4.24 bn through selling some of its stake in-group firm Tata Teleservices.