Post Session Commentary - May 15 2009

Domestic market rebounded sharply from yesterday’s losses to close near day''s high backed by the outcome of general election result scheduled tomorrow. On Saturday, 16 May 2009, the counting of votes will occur. In addition, firm cues from Asian markets and rise in European stocks contributed to the upswing in key benchmark indices. Meanwhile, All India Consumer Price Index Number for Industrial Workers (CPI-IW) for the month of March, 2009 remained stationery at 148. Consumer Price Index for the month, which stood at 8.03 % lower than 9.63% of February, 2009, also added to rally.

The market opened considerably higher mirroring positive cues from the global markets. Thursday, the US stock markets closed in positive. However, a batch of economic reports that missed expectations led the markets to shed some of its early gains. Further, benchmark indices moved up and continued to trade in positive zone on significant buying across the board. Market reported sharp rise during final trading hours to end with decent gains. Drop in consumer price index to 8.03% for March, 2009, also contributed to the positive sentiments. From the sectoral front, most of the indices ended in green. Among those, mainly Bank, Consumer Durables, Capital Goods, Teck, IT, Reality, power and Metal stocks contributed to the upward movement. Mid Cap and Small Cap stocks were also on buyer''s radar. However, FMCG stocks remained out of favor during the trading session.

Among the Sensex pack 25 stocks ended in green territory and 5 in red. The market breadth indicating the overall health of the market remained positive as 1472 stocks closed in green while 1068 stocks closed in red and 102 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 300.51 points at 12,173.42 and NSE Nifty ended up by 78.20 points at 3,671.65. BSE Mid Caps and Small Caps closed with gains of 50.14 and 35.15 points at 3,807.07 and 4,269.94 respectively. The BSE Sensex touched intraday high of 12,219.54 and intraday low of 11,948.70.

Gainers from the BSE Sensex pack are Ranbaxy Lab (8.59%), ICICI Bank (7.03%), Grasim Industries (4.96%), Bharti Airtel (4.68%), L&T Ltd (4.32%), TCS Ltd (4.36%), HDFC (3.75%), Wipro Ltd (3.68%), DLF Ltd (3.59%), SBI (3.50%), ACC Ltd (3.44%), RCom (3.36%), JP Associates (3.00%) and Tata Steel (2.85%).

Losers from the BSE Sensex pack are ONGC Ltd (2.27%), NTPC Ltd (0.56%), Grasim ITC Ltd (0.51%), Hindalco (0.49%) and HUL (0.09%).

On the global markets front the Asian markets which opened before the Indian market, ended in green as Sony''s better-than-expected estimate and the slowing down of the fall in Japan''s machinery orders that raised hope of relief. Shanghai Composite, Hang Seng, Nikkei 225, Straits Times index and Seoul Composite ended higher by 3.58, 249.01, 171.29, 17.67 and 10.78 points at 2,645.26, 16,790.70, 9,265.02, 2,139.78 and 1,391.73 respectively.

European markets which opened after the Indian market are trading higher. In Frankfurt the DAX index is trading up by 13.16 points at 4,751.63 and in London FTSE 100 is trading higher by 29.62 points at 4,392.20.

The BSE Bank index gained (3.86%) or 237.03 points at 6,375.65 on hopes that falling interest rates will boost lending growth. Scrips that gained are Oriental Bank (7.74%), ICICI Bank (7.03%), Bank of India (4.72%), Federal Bank (3.88%) and SBI (3.50%).

The BSE Capital Goods stocks increased by (3.57%) or 298.98 points to close at 8,676.35 after Larsen & Toubro said it expects a strong order flow in the year ending March 2010. Major gainers are Usha Martin (6.04%), ABB Ltd (5.85%), RNRL Praj Industries (4.73%), Thermax Ltd (4.50%) and Crompton Greaves (4.40%).

The BSE Consumer Durables ended up by (3.18%) or 61.95 points at 2,007.22. Gainers are Blue Star (19.99%), Titan Ind (1.64%) and Videocon Ind (0.58%).

The BSE Teck index advanced by (3.05%) or 68.54 points to close at 2,316.65. Main gainers are Patni Computers (14.46%), Tel Eighteen (9.63%), Idea Cell (7.62%), Bharti Airtel (4.68%) and Mphasis Ltd (4.63%).

The BSE IT index also ended higher by (2.47%) or 68.82 points at 2,850.73 on discussions that the worst may be over for the US economy. Patni Computers (14.46%), Mphasis Ltd (4.63%), TCS Ltd (4.16%), HCL Tech (3.77%) and Wipro Ltd (3.68%) ended in positive territory.

The BSE Realty index gained (2.14%) or 50.31 points to close at 2,404.87 on hopes that lower rates will spur housing demand. Gainers are DLF Ltd (3.59%), Unitech Ltd (3.45%), anant Raj (2.92%), Anant Raj (1.04%) and Akruti City (1.03%).

GTL Ltd gained 0.53%. The company has bagged multiple contracts valued approximately at Rs 324 Crore from Maharashtra State Electricity Distribution Company Limited (MSEDCL). The Turnkey contract includes construction, erection, testing and commissioning of sub-transmission lines, distribution lines, power transformers, renovation and modernization works in the State of Maharashtra.

Maruti Suzuki advanced by 1.63%. The company unveiled the much-awaited Ritz here today. The car is available in both, petrol and diesel engine options. With the Ritz, Maruti Suzuki consolidates its leadership in the highly competitive compact car segment. The Ritz comes with the BS-IV and OBD-I compliance much ahead of the regulation being enforced in the country.

Bajaj Auto ended up by 0.01 The company has bagged the patent for its invention- multi-spring vehicle shock absorber, used in its motorcycles by the Indian Patent Office. The patent was granted for its "SNS" invention with patent no. 234044 on May 1, 2009.

Piramal Healthcare advanced by 3.88%. On Thursday, the company launched a pain management product- BioElectronic''s ActiPatch. "ActiPatch is a medical device that utilizes pulsed electro-magnetic frequency (PEMF) to accelerate healing of soft tissue injuries.

Wipro Ltd gained 3.68%. The India and Middle East information technology services wing of Wipro, Wipro Infotech, has bagged an IT outsourcing deal from Life Insurance Corporation (LIC). The deal, worth around Rs 200 crore and will be for a time period of five years.

Axis Bank ended higher by 3.45%. The bank has reduced its benchmark prime lending rate (BPLR) by 50 basis points (bps), for the second time in one and a half months, bringing it to 14.75%.

Eveready Industries India Ltd ended up by 5.91% after an announcement of acquisition of France’s rechargeable battery maker Uniross from CG Holding for consideration of approximately Rs 60 crore.