Post Session Commentary - Apr 9 2009

Indian market managed to recapture slight strength to close highly volatile session in mixed note as BSE Sensex closed in positive territory whereas NSE Nifty on flat note. However, market pared most of its initial gains amid instability on account of incessant bouts of buying and selling. Positive European markets contributed a bit to the recovery. Previously, market remained choppy on weak IIP data that shrank by 1.2% for February 2009. Further, the inflation for week ended March 28 came in at 0.26% against 0.31% a week ago.

The domestic market opened on firm note backed by positive cues for the markets all over the world. The US stock markets on Wednesday ended higher with a late session rally in the market. Higher stocks were helped by news that the Treasury is planning to extend bailout funds to insurers. However, market turned volatile, soon after start and slipped into red on selling pressure witnessed on key stocks. Further, benchmark indices get back their strength and tried to extend gains in afternoon trade. Despite sharp recovery, market once again slipped into negative before ending mixed. BSE Sensex ended above 10,800 level and NSE Nifty above 3,300 mark. From the sectoral front, most of the buying was observed in Reality, Metal, Bank, Consumer Durables and Capital Goods stocks. Mid Cap and Small Cap stocks outperformed the benchmarks today. However, FMCG, Auto, Pharma and PSU stocks witnessed most of selling from these baskets.

Among the Sensex pack 18 stocks ended in green territory and 12 in red. The market breadth indicating the overall health of the market remained positive as 1783 stocks closed in green while 789 stocks closed in red and 78 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 61.52 points at 10,803.86 whereas NSE Nifty ended flat at 3,342.05. BSE Mid Caps and Small Caps closed with gains of 55.76 and 61.58 points at 3,358.35 and 3,767.55 respectively. The BSE Sensex touched intraday high of 10,932.12 and intraday low of 10,655.96.

Gainers from the BSE Sensex pack are Tata Steel (7.71%), JP Associates (7.40%), Reliance Infra (5.66%), ICICI Bank (5.62%), DFL Ltd (4.83%), Sterlite Industries (3.15%), L&T Ltd (2.76%), Grasim Industries (1.84%), SBI (1.47%), Tata Motors (1.28%) and Ranbaxy Lab (1.23%).

Losers from the BSE Sensex pack are HUL (3.26%), M&M Ltd (3.15%), Wipro Ltd (2.80%), ONGC Ltd (2.42%), NTPC Ltd (1.30%), BHEL (1.28%), Maruti Suzuki (1.12%) and RCom (0.73%).

Markets will remain close on Friday (10th April 2009) on account of Good Friday.

The IIP for the month of February, 2009 dipped to a historic low of negative 1.2% from a revised growth of 0.4% in January. However, industrial production grew 9.5% in the same month last year. The January numbers before the revision stood at a negative 0.5%.

The inflation for week ended 28th March 2009, came in at 0.26% against 0.31% a week ago. Drop in Inflation to 30 years low raised expectations of rate cuts by the Reserve Bank of India. Prices of some food items like tea have declined. However, the fuel index remained unchanged at its previous week''s level of 320.9.

On the global markets front the Asian markets which opened before the Indian market, ended in green tracking Wall Street gains overnight. Positive economic data from Japan also boosted investor sentiment as Japanese government has moved closer to a larger-than-expected 15.4 trillion yen ($154 billion) stimulus package of spending. Shanghai Composite, Hang Seng, Nikkei 225, Straits Times index and Seoul Composite ended higher by 32.49, 426.55, 321.05, 44.55 and 54.28 points at 2,379.88, 14,901.41, 8,916.06, 1,828.51 and 1,316.35 respectively.

European markets which opened after the Indian market are trading in green. In Frankfurt the DAX index is trading higher by 34.90 points at 4,392.82 and in London FTSE 100 is trading up by 4.61 points at. 3,930.19.

The BSE Realty index gained (5.42%) or 104.92 points to close at 2,041.33 on hopes that lower rates will spur housing demand. Gainers are Anat Raj (19.12%), Indiabull Real (7.62%), Unitech Ltd (6.86%), Mahindra Life (4.93%) and DLF Ltd (4.83%).

The BSE Metal index advanced by (3.72%) or 243.94 points at 6,801.56 as index metals rose in London Metal Exchange overnight. Scrips that gained are JSW Steel (13.56%), Jai Corp Ltd (9.97%), Tata Steel (7.71%), Sesa Goa Ltd (5.35%) and Jindal Steel (4.82%).

The BSE Bank index increased by (2.64%) or 129.98 points to close at 5,045.27 on fresh buying. Main gainers are Yes Bank (10.95%), Federal Bank (6.22%), Oriental Bank (5.86%), Karnataka Bank (5.67%) and ICICI Bank (25.62

The BSE Consumer Durables ended up by (2.59%) or 49.20 points at 1,950.52. Gainers are Videocon Ind (19.96%) and Gitanjali GE (4.86%). However, losers are Rajesh Export (3.90 %) and Titan Ind (2.11%) and (0.96%).

The BSE FMCG index decreased by (1.36%) or 28.23 points at 2,050.14 as recovering equity market compelled investors to unload defensive stocks. HUL (3.26%), Britania In (2.73%), ITC Ltd (1.26%), Mraico Ltd (1.14%) and Nestle Ltd (0.47%) ended in negative territory.

The BSE Auto stocks also lost (0.87%) or 28.92 points to close at 3,294.69. Major losers are Bharat Forge (5.63%), Bajaj Auto (4.02%), M&M Ltd (3.15%), Herohonda Motors (1.13%) and Maruti Suzuki (1.12%).

Tata Motors closed up by 1.28%. The much waited Tata Nano car''s booking opens today across the country and this will continue till April 25. The company has joined hands with 18 banks and financial institution for the booking process.

Natco Pharma advanced by 14.80%. The drug manufacturer has collaborated with Mumbai-based Lupin, to jointly commercialize generic equivalents of Lanthanum Carbonate tablets.

Suven Life Sciences gain 20%. The company completed its Phase-I multiple ascending dose study of SUVN-502 in healthy volunteers. SUVN-502 is intended for treatment of Alzheimer''s disease, Schizophrenia and other disorders of memory and cognition like attention deficient hyperactivity disorder and Parkinson.

Unitech increased by 6.86%. The company is planning to sell one expensive land asset to pay off loans and raise cash to fund its business. It is now trying to find buyers by offering deep discounts.

L&T ended up by 2.76% after the company bagged orders worth Rs.605 crore from water and steel sectors in the last quarter of FY09. The company has secured three orders worth Rs. 416 crore from the water sector and another order worth Rs. 189 crore from the steel sector. The metallurgical, material handling and water operating units of the company’s construction division would be executing these orders.