Post Session Commentary - March 27 2009

Domestic market managed to end the extremely volatile session in a positive zone. Stocks moved between positive and negative territory for throughout of session on continuous bouts of buying and selling. Further buying by the FIIs along with hopes of ease in monetary policy contributed to some positive sentiments. However, profit booking was also witnessed following the recent rally.

The Indian market opened on flat note and turned choppy soon after start. However, the US stock markets ended with smart gains on Thursday on better-than-expected corporate earnings and a satisfactory Treasury auction of a USD 24 billion auction of seven-year treasury notes. Further, benchmark indices remained unstable and continued to swing between red and green terrains led by profit booking and mixed cues from other Asian counterparts. Finally, market was able to stay above previous close as optimistic sentiments thrived over negativity. From the sectoral front, most of the buying was seen in Metal, Pharma, Bank, Auto, Consumer Durables, PSU and Capital Goods. Mid Cap and Small Cap stocks also ended with gains. However, IT and Oil & Gas stocks witnessed most of the selling from these baskets.

Among the Sensex pack 23 stocks ended in green territory and 7 in red. The market breadth indicating the overall health of the market remained strong as 1527 stocks closed in green while 1018 stocks closed in red and 113 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 45.39 points at 10,048.49 and NSE Nifty ended up by 26.40 points at 3,108.65. BSE Mid Caps and Small Caps closed with gains of 59.94 and 50.77 points at 2,934.16 and 3,238.11 respectively. The BSE Sensex touched intraday high of 10,127.09 and intraday low of 9,913.40.

Gainers from the BSE Sensex pack are Tata Motors (9.32%), Tata Steel (9.13%), RCom (8.95%), Hindalco Ltd (5.26%), JP Associates (4.31%), Ranbaxy Lab (4.05%), DLF Ltd (3.69%), ACC Ltd (3.34%), TCS Ltd (3.24%), ICICI Bank (2.94%) and SBI (2.88%).

Losers from the BSE Sensex pack are HDFC (3.88%), Infosys Tech (2.46%), BHEL (1.19%), Reliance (1.18%) and Maruti Suzuki (0.69%).

On the global markets front the Asian markets which opened before the Indian market, ended mixed. Shanghai Composite and Hang Seng ended higher by 12.73 and 10.52 points at 2,374.44 and 14,119.50 respectively. However, Nikkei 225, Straits Times index and Seoul Composite lost 9.36, 13.13 and 6.29 points at 8,626.97, 1,745.66 and 1,237.51 respectively.

European markets which opened after the Indian market are trading mixed. In Frankfurt the DAX index is trading down by 13.63 points at 4,245.74 whereas in London FTSE 100 is trading higher by 4.15 points at 3,929.35.

The BSE Metal index closed with increase of (4.85%) or 282.77 points at 6,110.09 on strong rise in metal prices in London Metal Exchange. Scrips that gained are JSW Steel (13.77%), Sesa Goa Ltd (9.82%), Tata Steel (9.13%), Steel Authority (7.02%) and Welspan Gujarat SR (5.77%).

The BSE Pharma ended up by (2.81%) or 75.17 points at 2,748.03. Gainers are Matrix Lab (19.98%), Orchin Chem (10.94%), Sunpha Adv (8.50%), Dr Reddy’s Lab (6.63%) and Dishma Pharma (5.55%).

The BSE Bank stocks advanced by (2.61%) or 122.81 points to close at 4,829.03 as RBI issued fresh norms for the adjustment of provisions for restructured accounts, standard assets, and non-performing assets (NPAs), a step that will support the financial health of banks. Major gainers are Federal Bank (9.34%), Union Bank (6.39%), Oriental Bank (6.33%), Punjab National Bank (5.78%) and Bank of Baroda (5.22%).

The BSE Auto index also ended higher by (2.22%) or 66.56 points at 3,067.78. Tata Motors (9.32%), Bharat Forge (7.53%), Ashok Leyland (5.62%), Herohonda Motor (5.54%) and Tata Power (5.57%) ended in positive territory.

The BSE Consumer Durable index surged (1.61%) or 25.53 points to close at 1,608.60. Main gainers are Videocon Ind (4.44%), Gitanjali GE (3.64%), Blue Star L (2.28%) and Rajesh Export (0.82%).

The BSE IT index lost (0.99%) or 23.41 points to close at 2,337.80 after US based technology firm Accenture reported a drop in quarterly sales and lowered its full-year profit outlook due to a strong dollar and a slower global economy. Losers are Mphasis LtdInfosys Tech (2.46%), Mphasis Ltd (1.65%), Wipro Ltd (0.59%) and Oracle Fin (0.08%).

Sasken Communication Technologies advanced by 18.42% after company said it signed a pact with British satellite communications firm Inmarsat to design global satellite hand-held phones.

JSW Steel jumped 13.77% after the company said it repurchased foreign currency convertible bonds aggregating $47.80 million.

DLF gained 3.69% on reports it has slashed rates for one of its upcoming housing projects in Gurgaon by 20% to discourage existing buyers from defaulting on payment and induce new buyers.

Steel Authority increased by 7.02%. The company expects up to 10% more sales in the present month compared to the year-ago period on improved demand from sectors like construction and automobile.

ICICI Bank gained 2.94%. The bank said on Thursday that it look at the option of cutting of interest rates in a few weeks.

Tata Tea increased by 1.18%. The company plans to forge an alliance with the European Bank for Reconstruction and Development (EBRD) to buy a stake of 51 per cent in a Russian packaging and distribution company- Grand. Russia is the world''s largest tea market by volume after the UK and India.