Post Session Commentary - Apr 6 2009

Indian market rose for the fourth straight session tracking firm cues from the markets all over the world. Stocks witnessed rally on a volatile session led by growing optimism that the global economic slump may be close to its end. In addition, buying by FIIs and steps taken by the G20 leaders to revive the global economy, also contributed to the northward journey. The G20 members announced a $5 trillion stimulus package, which would be delivered by 2010 end to deal with the economic recession. However, benchmark indices trimmed some of their gains during trading on account of profit booking after a decent rise.

The market opened on pleasant note directed by firm cues from the Asian markets. Also, the US stock markets on Friday ended higher on the back of better than expected results from Research in Motion and positive comments by Fed Chairman Ben Bernanke about lending to banks. Domestic market exhibited volatility after firm opening and pared some of its gains on slight bouts of selling. However, benchmark indices continued to move in positive territory as buying was witnessed in front liners. Strong European markets also lifted the sentiments. Finally, market concluded its bullish movement only by the end of session in line with most of the global stocks. BSE Sensex ended above 10,500 level and NSE Nifty above 3,200 mark. From the sectoral front, strong buying was seen mainly in Consumer Durables, Capital Goods, Metal, Auto, Reality, Bank and Teck stocks. Mid Cap and Small Cap stocks also followed the same trend. However, FMCG and IT stocks witnessed most of the selling from these baskets.

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 extremely positive as 1859 stocks closed in green while 633 stocks closed in red and 75 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 186.04 points at 10,534.87 and NSE Nifty ended up by 45.55 points at 3,256.60. BSE Mid Caps and Small Caps closed with gains of 77.66 and 110.32 points at 3,203.08 and 3,547.24 respectively. The BSE Sensex touched intraday high of 10,654.89 and intraday low of 10,410.44.

Gainers from the BSE Sensex pack are M&M Ltd (14.26%), RCom (11.19%), L&T Ltd (7.40 %), HDFC (7.37%), Reliance Infra (6.47%), Hindalco (6.39%), Tata Steel (4.89%), ICICI Bank (4.00%), Sterlite Industries (3.64%), Bharti Airtel (3.35%) and DLF Ltd (3.07%).

Losers from the BSE Sensex pack are ACC Ltd (3.14%), ITC Ltd (2.49%), Ranbaxy Lab (2.30%), Grasim Indus (2.13%), HUL (1.67%) and SBI (1.43%).

The Prime Minister''s economic advisory council (PMEAC) has lowered India''s growth rate forecast to 6.5-7 per cent from previous projection of 7.1 per cent for 2008-09. The industrial growth turned negative in October and December and the industrial output again fell in January, despite the stimulus packages. The exports also fell for the fifth consecutive month in February after it had a good run in the first half of 2008-09.

On the global markets front the Asian markets which opened before the Indian market, ended higher tracking Wall Street gains overnight. Asian stocks ignored news of North Korea''s rocket launch over the weekend, which was condemned by the international community. Hang Seng, Nikkei 225, Straits Times index and Seoul Composite ended higher by 452.35, 108.09, 27.11 and 14.1 points at 14,998.04, 8,857.93, 1,847.98 and 1,297.85 respectively. However, Shanghai Composite lost 5.51 point at 2,419.78.

European markets which opened after the Indian market are trading in green. In Frankfurt the DAX index is trading up by 39.15 points at 4,424.14 and in London FTSE 100 is trading higher by 38.47 points at. 4,068.14.

The BSE Consumer Durables outperformed the benchmark indices and ended up by (5.84%) or 100.21 points at 1,817.38. Gainers are Gitanjali GE (25.15%), Videocon Ind (9.02%), Rajesh Export (7.50%), Blue Star (3.70%) and Titan Ind (3.05%).

The BSE Capital Goods stocks also advanced by (3.75%) or 255.37 points to close at 7,062.37. Major gainers are Reliance Industrial Infra (32.65%), Suzlon Energy (10.64%), Kalpat Power T (8.23%), Praj Industries (8.18%) and L&T Ltd (7.40%).

The BSE Metal index gained (3.65%) or 226.93 points at 6,451.12 as primary metal prices indicated some recovery in past trading session. Scrips that gained are Jai Corp Ltd (14.80%), Ispat Industries (6.94%), Gujarat NRE C (6.45%), Hindalco (6.39%) and Jindla Saw (5.02%).

The BSE Auto index increased by (3.59%) or 113.66 points to close at 3,280.58. Main gainers are M&M Ltd (14.26%), Bharat Forge (11.59%), Escorts Ltd (9.30%), Exide Industries (7.61%) and Amtek Auto (6.65%).

The BSE Realty index gained (2.97%) or 53.36 points to close at 1,848.83 on hopes that lower rates will spur housing demand. Gainers are Penland Ltd (15.42%), Housing Dev (8.91%), Pheonox Mill (8.15%), Orbit Co (5.63%) and Sobha Dev (4.66%).

The BSE FMCG index lost (1.82%) or 36.92 points at 1,989.38. United Spr (4.38%), ITC Ltd (2.49%), Colgate Palm (2.27%), HUL (1.67%) and Marico Ltd (0.93%) ended in negative territory.

M&M Ltd advanced by 14.26%. The auto company and its joint venture company, Mahindra Navistar Automotives Ltd, have tied up with Corporation Bank for vehicle finance.

Suzlon Energy increased by 10.64% as its US unit won a repeat order from US firm Duke Energy worth about $45 million for supply of 20 wind turbines.

L&T Ltd surged 7.40%. The company had won two orders worth a total of 13.44 billion rupees ($265 million) from refiner Mangalore Refinery and Petrochemicals Ltd.

JSW Steel gained 2.35% as achieved highest ever production during 4th Quarter ended March 2009 showing growth of 11% over corresponding quarter of last year. The Crude Steel production of 4,56 lakh tons in March 2009 was higher by 28% over the corresponding month of last year and 39% sequentially over February 2009.

HCL Technologies Ltd. went up by 5.01%. The company has entered into a six-year, multi-regional data center services and transformation engagement with Xerox Corporation. HCL will use Business Service Management process of Xerox to centralize and standardize Xerox’s data centers’ infrastructure. The engagement will also leverage HCL’s unique “zero-business” disruption based transition framework to ensure an accelerated risk-free transition across distributed regional data centers.

State Bank of India lost 1.43%. The bank has informed that SBI and Macquarie Group Ltd (Macquarie), on April 06, 2009 announced the launch of the Macquarie-SBI Infrastructure Fund (MSIF), which will invest in infrastructure projects in India. International investors have committed to invest $887 million to MSIF separately SBI''''s commitment of $150 million.