Post Session Commentary - May 26 2009

The domestic market extended its losses towards the closing to end near day’s low tracking negative European markets. Weak Asian markets also weighed on sentiments. However, market pared some losses during mid session on a little buying led by a statement of Finance Minister Pranab Mukherjee about prioritizing maintenance of growth momentum. Meanwhile, benchmark indices also exhibited volatility ahead of the expiry of May 2009 futures and options (F&O) contract on Thursday, 28 May 2009.

The market belled the day on positive note although lost ground immediately after start backed by mixed cues from Asian markets in early trade. The US stock markets were closed on Monday on account of Memorial Day observance. The Indian market turned instable after opening on expiry of May 2009 F&O contract due on Thursday. However, benchmark indices reported some sign of recovery during mid session, which was short-lived as stocks all over the world were hovering in red territory. Further, market slipped sharply and widened its negative gap to end the day with huge losses on intense selling pressure over the ground. BSE Sensex ended below 13,600 level and NSE Nifty around 4,100 mark. From sectoral front, investors off-loaded position across the sectors barring IT index. Besides, most of the selling was seen in Reality, Capital Goods, Power, Consumer Durables, Oil & Gas and Bank stocks. The broader markets were also out of favour today as Mid Cap and Small Cap stocks lost more than 3% each.

Among the Sensex pack 26 stocks ended in red territory and 4 in green. The market breadth indicating the overall health of the market remained negative as 1454 stocks closed in red while 1323 stocks closed in green and 33 stocks remained unchanged in BSE.

The BSE Sensex closed lower by 323.99 points at 13,589.23 and NSE Nifty ended down by 120.85 points at 4,116.70. BSE Mid Caps and Small Caps closed with losses of 166.06 and 180.77 points at 4,724.09 and 5,608.66. The BSE Sensex touched intraday high of 13,991.46 and intraday low of 13,518.79.

Losers from the BSE Sensex pack are RCom (9.56%), Ranbaxy Lab (8.36%), Tata Motors (5.91%), NTPC Ltd (5.33%), ICICI Bank (5.25%), Bharti Airtel (5.05%), DLF Ltd (4.30%), L&T Ltd (3.83%), JP Associates (3.80%), M&M Ltd (3.67%), ITC Ltd (2.98%), ONGC Ltd (2.56%), Reliance (2.25%) and Tata Steel (2.09%).

Gainers from the BSE Sensex pack are Hindalco (3.23%), Infosys Tech (2.34%), Wipro Ltd (1.54%) and Sterlite Industries (0.33%).

On the global markets front the Asian markets which opened before the Indian market, ended lower as North Korea tested its nuclear missile. Shanghai Composite, Hang Seng, Nikkei 225, Straits Times index and Seoul Composite ended lower by 21.44, 130.26, 36.19, 28.67 and 28.86 points at 2,588.58, 16,991.56, 9,310.81, 2,238.79 and 1,372.04 respectively.

European markets which opened after the Indian market are trading in red. In Frankfurt the DAX index is trading down by 107.61 points at 4,810.84 and in London FTSE 100 is trading lower by 53.60 points at 4,311.69.

The BSE Reality index dropped by (3.96%) or 136.70 points to close at 3,314.74. Main losers are Housing Development (9.88%), Sobha Dev (6.57%), Unitech Ltd (5.64%), Mahindra Life (5.20%) and DLF Ltd (4.30%).

The BSE Bank index dropped by (3.13%) or 246.11 points at 7,605.16 on profit booking after recent rise. Scrips that lost are ICICI Bank (7.62%), Karnataka Bank (7.13%), ICICI Bank (5.25%), Yes Bank (5.06%) and Indus Ind Bank (4.96%).

The BSE Capital Goods index also ended lower by (3.06%) or 340.85 points at 10,795.12. Aiaengineer (7.99%), Jyoti Struct (7.96%), Elecon Eng C (7.93%), Reliance Industrial Infra (7.55%) and Lakshmi MA W (7.40%) ended in negative territory.

The BSE Consumer Durables index lost (3.01%) or 78.99 points to close at 2,548.85. Losers are Titan Ind (8.96%), Gitanjali GE (1.75%) and Rajesh Export (1.30%).

The BSE Power plunged (2.97%) or 81.45 points at 2,658.38. Losers are Power Grid (7.22%), Lanco Infra (7.00%), Reliance Power (5.98%), NTPC Ltd (5.33%) and ABB Ltd (5.13%).

The BSE IT stocks gained (0.85%) or 24.04 points to close at 2,844.74 as rupee cooled off after a recent surge. Gainers are Infosys tech (2.34%) and Wipro Ltd (1.54%). However scrips that lost are NIIT Ltd (10.72%), Tech Mahindra (8.79%) and Rolta India (6.10%).

Bank of Baroda dropped by 1.40%. The bank has slashed its interest rates on its various maturity deposits by 0.25-0.75 per cent and the rate reduction will be effective from May 27 and will be applicable for all maturities above 181 days.

Andhra Bank lost 1.52%. The bank has restructured 58,725 accounts amounting to Rs 1,593-crore during FY 09 those comprising industries, housing loans as well as educational loans, agriculture loans and retail loans.

Punjab National Bank slipped 0.77%. The company has launched MoneyGram remittance service in partnership with Thomas Cook India Ltd and UAE Exchange & Financial Services Ltd.

Ranbaxy Laboratories Ltd plunged 8.36% on reports the firm could take a hit of as much as $50 million due to a delay in supplying a key ingredient to UK''s AstraZeneca used to make anti-ulcer drug, Nexium.

Tata Motors lost 5.91%. The company raised $840 million in debentures to partly repay a loan taken to finance its purchase of British car icons Jaguar and Land Rover.

NTPC Ltd dropped by 5.33%. A Joint Venture Company of NTPC Ltd has been incorporated on May 22, 2009 under the name "National High Power Test Laboratory Pvt Ltd" (NHPTLPL) in association with NHPC Ltd (NHPC), Power Grid Corporation of India Ltd (Power Grid) and Damodar Valley Corporation (DVC). The new Joint Venture firm is incorporated for setting up an on-line high-power test laboratory for short- circuit test facility in the country.