Post Session Commentary - March 6 2009

Indian market reversed from its earlier losses to close in green terrain tracking firm cues form the European markets. Stocks reported smart rebound from its initial low on sustained buying over the counters as investors picked bargains in the battered market. Key stocks like Satyam Computers contributed to most of the buying as ended up with impressive gain of 19.94% on receiving approval form SEBI to sell 51% stake. Sharp rally prevailed since afternoon trade followed by a highly volatile trade amid downbeat attitude as General Motors'' bankruptcy warning raised concerns about the strength of the global economy.

The domestic market had a gap down opening today on the back of weak cues from the global markets. The US stock markets plunged on Thursday to new multiyear lows to close at its worst level since the fourth quarter of 1996. The growing pessimism about the economy and uncertainties about the survival of General Motors has led the investors to book profits. After lower opening, market pared some of its losses and was hovering close to the dotted line. Further, benchmark indices managed to gain ground subsequent to struggle since initial bell. Finally, market reported magnificent bounce back to end the day with handsome gains. BSE Sensex ended above 8,300 mark and NSE Nifty closed above 2,600 level. From the sectoral front, IT, Teck, Oil & Gas, Capital Goods, Power, Metal and Consumer Durable stocks mainly led the upturn. However, FMCG, Reality and Auto stocks observed most of the selling from these baskets. BSE Mid Cap and Small Cap stocks also observed selling pressure.

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 negative as 1419 stocks closed in red while 993 stocks closed in green and 88 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 127.90 points at 8,325.82 and NSE Nifty ended up by 43.45 points at 2,620.15. BSE Mid Caps and BSE Small Caps ended with losses of 16.81 points and 24.28 points at 2,586.30 and 2,911.73 respectively. The BSE Sensex touched intraday high of 8,347.74 and intraday low of 8,047.17.

Gainers from the BSE Sensex pack are HDFC (6.40%), Hindalco (4.38%), JP Associates (4.27%), TCS Ltd (3.84%), Wipro Ltd (3.37%), ONGC Ltd (3.31%), Tata Steel (3.12%), Infosys Tech (3.08%) and Sun Pharma (2.40%).

Losers from the BSE Sensex pack are Maruti Suzuki (2.77%), HUL (2.65%), Ranbaxy Lab (2.15%), ITC Ltd (1.61%), DLF Ltd (1.12%) and Tata Motors (0.57%).

India''s exports fell by 13% in the month of February for the fifth straight month. On the other hand, the imports also fell for second consecutive month by about 18% during the period, according to the quick estimates of the government.

The direct tax collections fell more than 18% at Rs 11,506 crore in February as compared to the year-ago period. The collections of direct tax in February 2008 stood at Rs 14,138 crore, according to the figures released by the Central Board of Direct Taxes (CBDT).

India’s infrastructure sector output in January 2009 registered a growth of 1.4% compared to growth of 3.6% in January 2008. During April-January 2008-09, 6 core-infrastructure industries registered a growth of 3.2% as against 5.7% during the corresponding period of previous year. The infrastructure sector accounts for 26.68% of the country’s industrial output.

On the global markets front the Asian markets which opened before the Indian market, ended lower following Wall Street losses overnight. Stocks took beating on fears about global downturn. Shanghai Composite, Hang Seng, Nikkei 225, Straits Times index and Seoul Composite ended lower by 28.07, 289.72, 260.39, 5.52 and 3.15 points at 2,193.01, 11,921.52, 7,173.1, 1,513.12 and 1,055.03 respectively.

European markets which opened after the Indian market recovered from its earlier losses and are trading in green. In London FTSE 100 is trading higher by 28.01 points at 3,557.87 and in Frankfurt the DAX index is trading up by 14.36 points at 3,3709.85.

The BSE IT index gained (3.05%) or 61.28 points at 2,072.32 on steep drop in rupee value. Gainers are Patni Computers (9.83%), Mphasis Ltd (8.78%), TCS Ltd (3.84%), Wipro Ltd (3.37%) and Infosys Tech (3.08%).

The BSE Teck index also went up (2.44%) or 40 points to close at 1,678.81. Patni Computers (9.83%), Mphasis Ltd (8.78%), TCS Ltd (3.84%), Jagran Prak (3.33%) and Zee Ent (3.32%) ended in green.

The BSE Oil & Gas index closed with increase of (1.76%) or 68.80 points at 5,724.06. Scrips that gained are ONGC Ltd (3.31%), Reliance (1.87%), Reliance Pet (1.85%), Reliance Nat Res (1.38%) and Cairn Ind (1.29%).

The BSE Capital Goods index ended up by (1.54%) or 84.60 at 5,561.35. Gainers are ABB Ltd (4.05%), Praj Indus (3.22%), BHEL (2.20%), L&T Ltd (2.04%) and Jyoti Struct (1.06%).

The BSE FMCG index ended lower by (1.73%) or 32.62 points to close at 1,854.11. Nestle Ltd (5.12%), Ruchi Soya (4.91%), HUL (2.65%), Colgate Palm (2.05%) and ITC Ltd (1.61%) ended in negative territory.

The BSE Reality stocks lost (0.89%) or 12.10 points to close at 1,6346.83 on reports that falling rates have failed to motivate housing demand. Losers are Anant Raj (5.62%), Indiabull Real (4.86%), Orbit Co (3.50%), Omaxe Ltd (3.07%) and Parsvnath (2.16%).

Satyam Computer Services advanced by 19.94% after company received approval from Securities and Exchange Board of India to kick start a process to sell a 51% stake, in a move likely to attract more bidders.

ONGC gained 3.31% as approves investment proposal for renewal and development projects. The board approves the renewal of Lakwa and Lakhmani Surface Facilities in Assam aims to re-engineer as well as to revamp the Surface facilities, which are more than 30-40 years old. In line with this, the company''s board also approved the development of PK & South West Panna Areas under Panna Mukta Joint Venture for $131.60 mn. The board gave a green signal for the development of un-drained area "PL" in Southern part of main field.

Maruti Suzuki dropped by 2.77 % as the company is likely to lower down the price of Alto, as it looks to take on the Nano, the world''s cheapest car being rolled out by Tata Motors. The Alto''s entry model which costs Rs 2.3 lakh, will not be priced as low as the Nano, but will see a significant markdown.

Ranbaxy Laboratories fell 2.15% on reports the Australian drug regulator is investigating allegations by US drug regulators that one of Ranbaxy''s plants falsified data for drug approvals.