Post Session Commentary - May 27 2009

The domestic market closed the session with strong gains on the back of the comments form the Finance Minister, Pranab Mukherjee that reviving the growth momentum is the top priority for the government and added that the fiscal prudence will be kept in mind. Also the strong global markets gave a boost to the domestic bourses. Mukherjee said that the government will continue to enhance the spending this year to support then growth and also added that the growth and employment are not possible without the increased spending and borrowing. Moreover he also said that he will meet the bankers and get them committed to a more benign plan of action. This gives a boost to the investors sentiments which resulted in heavy buying across the sectoral indices. However, the Indian market completely turned down expiry of May 2009 F&O contract due on Thursday

The market opened the session with decent gains tracking the firm cues from the global markets and kept on marching forward through out the trading session on sustained buying support across the counters. The market further inclined sharply in the final hours on the back of government’s emphasis to bring the economy to a growth trajectory. Moreover, in the global arena, the US Markets on Tuesday closed with huge positive gains due to better than expected consumer confidence data. The sentiments strengthened after the May consumer confidence data was far better than expected at 54.9 as against the prior month data of 40.8. The Retailers also spiked by a remarkable 4.0% as the buying sentiment erupted with expectations of the improving economic condition. However, benchmark indices reported strong gains during the session with BSE Sensex ended above 14,100 level and NSE Nifty above 4,270 mark. From sectoral front, investors on-loaded position across the sectors led by Realty, Bankex, Power, PSU, Metal and Capital Goods index. The broader markets were also remained in the buyers radar as Mid Cap and Small Cap stocks gained more than 3% each.

Among the Sensex pack 27 stocks ended in green territory and 3 in red. The market breadth indicating the overall health of the market remained firm as 2,346 stocks closed in positive while 459 stocks closed in negative and 36 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 520.41 points or 3.83% at 14,109.64 and NSE Nifty ended with gains of 159.35 points at 4,276.05. BSE Mid Caps and Small Caps closed with gains of 173.28 and 189.08 points at 4,897.37 and 5,797.74. The BSE Sensex touched intraday high of 14,122.78 and intraday low of 13,780.41.

Gainers from the BSE Sensex pack are Reliance Infra (14.72%) followed by Sterlite Indus (9.49%), ONGC (9.42%), DLF (8.49%), Grasim Indus (7.27%), Ranbaxy Labs (7.14%), ICICI Bank (6.59%), JP Associates (6.58%) and SBI (6.08%).

Losers from the BSE Sensex pack are Bharti Airtel (0.19%) along with ITC (0.19%) and ACC (0.16%).

On the global markets front the Asian markets which opened before the Indian market, ended in green. Hang Seng, Strait Times, Taiwan Weighted, Nikkei closed up by 5.26%, 3.01%, 3.10%, 1.37% at 17,885.27, 2,306.08, 6,890.44 and 9,438.77 respectively.

European markets which opened after the Indian market are also trading mixed. In Frankfurt the DAX index is trading up by 0.12% at 4,991.48 and in London FTSE 100 is trading lower by 0.08% at 4,408.08.

The BSE Realty index gained (6.09%) or 202.03 points to close at 3,516.77. Main gainers are Ansal Infra (9.98%), DLF (8.49%), Sobha Developers (6.86%), Mahindra Life (6.63%), HDIL (6.42%) and Orbit Co (5.32%).

The BSE Bank index surged (5.42%) or 412.14 points at 8,017.30. Scrips that mostly gained are Indus Ind Bank (9.47%), AXIS Bank (7.21%), ICICI Bank (6.59%), SBI (6.08%), HDFC Bank (5.18%) and Yes Bank (4.96%).

The BSE Capital Goods index also ended higher by (4.24%) or 457.34 points at 11,252.46. Elecon Eng. (9.95%), Lakshmi MA (7.39%), Punj Lloyd (5.90%), Reliance Industrial Infra (5.65%), Jyothi Structure (5.09%) and Alstrom Project (5.31%) ended in positive territory.

The BSE Consumer Durables index grew (3.60%) or 91.73 points to close at 2,640.58. Gainers are Rajesh Export (8.26%), Titan Industries (5.02%), Gitanjali Gems (3.38%) and Videocon Industries (2.52%).

The BSE Power advanced (4.89%) or 130.12 points at 2,788.50. Gainers are Reliance Infra (14.72%), Reliance Power (12.40%), GVK Power (7.76%), Siemens (7.34%), Neyivelli Lig (6.15%) and Suzlon Energy (3.52%).

The BSE Metal stocks gained (4.67%) or 457.67 points to close at 10,266.79. Gainers are NMDC (10%), Sterlite Industries (9.49%), Sesa Goa (7.31%), Nalco (5.80%), Jai Corp (4.98%), Wels pun Gujrat (4.08%) and Gujarat NRE (3.95%).

The BSE oil and gas surged (3.46%) or 333.40 points at 9,971.35. Gainers are ONGC (9.42%), RNRL (6.02%), Cairn India (5.43%), Essar Oil (4.45%), Gail India (2.99%), BPCL (2.66%) and Aban Offshore (2.64%).

Jaiprakash Associates Ltd closed up by 6.58% at Rs190.30. The company has informed that pursuant to the Scheme of Amalgamation sanctioned by the Honble High Court of Judicature at Allahabad, June 12, 2009 has been fixed as the Record Date for the purpose of issue and allotment of Equity Shares to the Shareholders of the Jaypee Hotels Ltd (JHL) (Transferor Company No 1), Jaypee Cement Ltd (JCL) (Transferor Company No 2), Jaiprakash Enterprises Ltd (JEL) ((Transferor Company No 3) & Gujarat Anjan Cement Ltd (GACL) ((Transferor Company No 4) with Jaiprakash Associates Ltd (Transferee Company).

BHEL closed higher by 4.28% at Rs2,078.20. The Company has posted a net profit of Rs 13474.70 million for the quarter ended March 31, 2009 as compared to Rs 11108.70 million for the quarter ended March 31, 2008. Total Income has increased from Rs 76262.00 million for the quarter ended March 31, 2008 to Rs 110472.40 million for the quarter ended March 31, 2009.

Mangalore Refinery & Petrochemicals Ltd (MRPL) surged 15.60% at Rs75.95. The Company has posted a net profit of Rs 6076.20 million for the quarter ended March 31, 2009 as compared to Rs 2253.30 million for the quarter ended March 31, 2008.