Post Session Commentary - March 9 2009

Indian market extended its initial losses to close the day on red zone. Significant selling pressure throughout the trading session was led by negative European markets along with weak US index futures. Along with this, lower US jobless data also contributed to the downbeat reaction. Further negativity was also added due to sustained selling by foreign funds.

The domestic market tumbled since initial bell triggered by blood bath in Asian markets. Besides, the US stock markets on Friday ended in mixed after a sharp volatile session, as weak economic data weighed over the sentiments. The nonfarm payrolls in February fell 651,000, in-line with expectations and the unemployment climbed more than expected to a 25-year high of 8.1%. Extending its losses further, benchmark indices continued to trade on negative note on intense selling pressure observed in key stocks. Additionally, forthcoming local holidays also forced investors to trim their positions further. Finally, market ended with negative gap led by sharp fall over the ground. BSE Sensex ended below 8,200 mark and NSE Nifty below 2,600 level. From the sectoral front, most of the selling was seen in Reality, FMCG, Bank, Teck, IT, Capital Goods, Metal and Consumer PSU stocks. BSE Mid Cap and Small Cap stocks also remained out of favour. However, Auto stocks remained in limelight as observed most of the buying from this basket.

Among the Sensex pack 27 stocks ended in red territory and 3 in green. The market breadth indicating the overall health of the market remained negative as 1584 stocks closed in red while 798 stocks closed in green and 88 stocks remained unchanged in BSE.

The BSE Sensex closed lower by 165.42 points at 8,160.40 and NSE Nifty ended down by 47 points at 2,573.15. BSE Mid Caps and BSE Small Caps ended with losses of 32.81 points and 45.05 points at 2,553.49 and 2,866.68 respectively. The BSE Sensex touched intraday high of 8,259.22 and intraday low of 8,110.10.

Losers from the BSE Sensex pack are JP Associates (5.32%), SBI (4.68%), DLF Ltd (4.54%), Ranbaxy Lab (4.46%), Sun Pharma (4.20%), RCom (4.03%), ITC Ltd (4%), TCS Ltd (3.83%) and Hindalco (3.56%).

Gainers from the BSE Sensex pack are HDFC (2.65%), Maruti Suzuki (0.25%) and M&M Ltd (0.22%).

On the global markets front the Asian markets which opened before the Indian market, ended lower. Stocks tumbled on concerns that corporate earnings will worsen further as the World Bank predicted the global economy to shrink for the first time since World War II. Shanghai Composite, Hang Seng, Nikkei 225 and Straits Times index ended lower by 74.26, 576.94, 87.07 and 56.17 points at 2,118.75, 11,344.58, 7,076.03 and 1,456.95 respectively. However, Seoul Composite gained 16.7 points at 1,071.73.

European markets which opened after the Indian market are trading in red as banks slipped after the UK government increased its stake in Lloyds Banking Group. In London FTSE 100 is trading lower by 29.67 points at 3,501.06 and in Frankfurt the DAX index is trading down by 35.94 points at 3,630.47.

The BSE Reality stocks lost (3.21%) or 43.20 points to close at 1,303.63 on reports that falling rates have failed to motivate housing demand. Losers are Housing Development (6.90%), Unitech Ltd (4.98%), DLF Ltd (4.54%), Mahindra Life (4.54%) and Indiabull Real (3.90%).


The BSE FMCG index ended lower by (2.78%) or 51.54 points to close at 1,802.57 due to huge sales in key stocks. ITC Ltd (4.00%), United Brew (3.70%), HUL (3.33%), Britania In (3.25%) and Ruchi Soya (2.95%) ended in negative territory.

The BSE Bank index closed with decrease of (2.78%) or 103.86 points at 3,633.23 as banking industry has not transferred the benefits of recent rate cuts by RBI. Scrips that lost are Karnataka Bank (8.88%), Bank of India (7.84%), Indian Overseas Bank (6.46%), Bank of Baroda (5.27%) and Oriental Bank (5.17%).

The BSE Teck index also plunged (2.58%) or 43.26 points to close at 1,635.55. Tata Teleservices (15.95%), Rolta Ind (12%), Tanla (10.08%), IOL Netcom (9.94%) and Tel Eighteen (8.27%) ended in red.

The BSE IT index lost (2.27%) or 47.03 points at 2,025.09. Gainers are Rolta Ind (12%), TCS Ltd (3.83%), Wipro Ltd (3.49%), Patni Computer (3.11%) and Aptech Ltd (3.07%)

The BSE Auto index ended up by (0.07%) or 1.78 at 2,599.15 due to increase in auto sales to 10.4 lakh units in February 2009 over February 2008. Gainers are Amtek Auto (3.63%), Exide Indus (3.40%), Apollo Tyre (1.89%), Bajaj Auto (1.20%) and Herohonda Motor (0.40%).

Ranbaxy Laboratories dropped 4.46%. The company has received an approval from US Food and Drug Administration for its Abbreviated new drug application to market and manufacture Ramipril Capsules 5mg and 10mg.

Sterlite Industries fell 2.24% on acquisition of Asarco LLC, the US-based bankrupt copper miner for $1.7 billion, 35% lower than its previous bid.

Jindal Saw Ltd ended down by 1.48%. The Equity Shareholders & Creditors of the company at its Court Convened meeting held on March 07, 2009, have approved the Scheme of Amalgamation of Highgate Consultants Ltd. - Subsidiary of the Company.

BHEL dropped by 0.93% despite the announcement by the company that it has won a major contract worth Rs. 810 mn by Powergen Infrastructure for the manufacture and supply of generator transformers for the upcoming Tirora Thermal Power Project of Adani Power Maharashtra Ltd.

Satyam Computer surged 15.80% as the company has started it’s process to select a strategic investor. The bidders will have to register their Expression of Interest (EOI) in participating in the bidding by March 12, 2009 and also need to show Rs 1,500 crore to qualify. The bids will have to be submitted by March 12, 2009. There is no minimum floor price required for the bids.

Lupin Ltd ended up by 1.14%. Lupin Research Park, the R&D wing of the company has announced a tie up with Birla Institute of Technology and Sciences Pilani, Manipal University, Karnataka and Pune University whereby Lupins Research Park at Pune now stands recognized as a center for its employees to pursue their PhD program while working concurrently in Lupin.