Post Session Commentary - May 28 2009

The domestic market closed the session with decent gains on sustained buying across the sectoral indices. The volatility was high during the trading session due to the rollover of May 2009 contracts to June 2009 contracts in the futures and options segment. The rally was further supported by a statement from Finance Minister Pranab Mukherjee, that the government should push long pending reforms in the financial sector to boost the real economy growth. Further on the back of anticipations that there could be further rate cut from the RBI. Meanwhile the government is also not ruling out any stimulus package for particular sectors to deal with the impact of global economic slowdown. However, the wholesale price index remained unchanged at 0.61% in the 12 months to May 16, 2009, government data showed today, 28 May 2009.

The market opened the session with marginal gains but soon slipped into the negative territory on selective profit booking across the counters. The market soon recovered from the fall and kept on marching forward for most of the sessions but pared some of its gains in the afternoon session. However, less than expected weekly inflation figures lead the market to extend gains in the late hour of the session. Moreover, in the global arena, the US market closed in red on the back of mixed cues from corporate. There was news that General Motors has offered a $27 billion bond exchange, however this could not support the market sentiments. Besides, the auction of 5-year government notes carrying a 2.3% yield came with a solid bid-to-cover ratio of 2.3. The mortgage origination sellers took to hedge their positions and consequently pressured the long-end yield curve. However, benchmark indices gained strength during the session with BSE Sensex ended above 14,250 level and NSE Nifty above 4,337.10 mark. From sectoral front, investors on-loaded position across the sectors led by Metal, PSU, Bankex, Capital Goods and Realty index.

Among the Sensex pack 20 stocks ended in green territory and 10 in red. The market breadth indicating the overall health of the market remained firm as 1,738 stocks closed in positive while 1,020 stocks closed in negative and 54 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 186.37 points or 1.32% at 14,296.01 and NSE Nifty ended with gains of 61.05 points or 1.43% at 4,337.10. BSE Mid Caps and Small Caps closed with gains of 38.19 and 13.95 points at 4,935.56 and 5,811.69. The BSE Sensex touched intraday high of 14,377.23 and intraday low of 14,078.62.

Gainers from the BSE Sensex pack are Ranbaxy Labs (4.24%) followed by Sterlite Inds (3.59%), Bharti Airtel (3.42%), NTPC (2.80%), Tata Steel (2.77%), ICICI Bank (2.67%).

Losers from the BSE Sensex pack are Tata Motors (3.17%) along with Grasim Industries (2.80%), Wipro (2.68%), Reliance Communication (2.68%), Reliance Infra (1.34%) and Infosys (0.56%).

European markets which opened after the Indian market are trading in red. In Frankfurt the DAX index is trading lower by 1.32% at 4,934.53 and in London FTSE 100 is trading down by 1.35% at 4,356.83.

The BSE Metal index gained (2.76%) or 283.16 points to close at 10,549.95. Main gainers are NMDC (9.99%), SAIL (6.58%), JSW Steel (6.53%), Jai Corp (4.99%), Sterlite Industries (3.59%) and Tata Steel (2.77%).

The BSE Bankex index surged (1.81%) or 145.43 points at 8,162.73. Scrips that mostly gained are Allahabad Bank (8.87%), Indus Ind Bank (6.39%), IDBI Bank (3.60%), Kotak Bank (3.52%), ICICI Bank (2.67%) and SBI (2.14%).

The BSE Capital Goods index also ended higher by (1.74%) or 196.26 points at 11,448.72. ABB (3.56%), Siemens (3.21%), Jyoti Structure (2.99%), L&T (2.32%), BHEL (1.89%) and AIA Engineering (1.48%) ended in positive territory.

The BSE Realty index grew (1.74%) or 61.17 points to close at 3,577.94. Gainers are India Bull Real (10.56%), Anant Raj Ind (4.97%), Phoenix Mill (4.72%) and DLF (1.78%).

The BSE Power advanced (1.28%) or 35.73 points at 2,824.23. Gainers are GVK Power (3.48%), NTPC (2.80%), Power Grid (2.05%), Suzlon Energy (1.39%), Tata Power (0.88%) and Torent Power (0.70%).

The BSE Oil and Gas stocks gained (1.15%) or 114.52 points to close at 10,085.87. Gainers are ONGC (2.07%), RPL (1.35%), Reliance Industries (1.50%) and Gail India (0.69%).

The BSE Consumer Durables increased (0.87%) or 22.90 points at 2,663.48. Gainers are Titan Industries (2.46%), Gitanjali Gems (2.31%) and Bluestar (2.31%).

SAIL advanced 6.58% at Rs164.35. The Company has posted a net profit of Rs 14866.80 million for the quarter ended March 31, 2009 as compared to Rs 23767.60 million for the quarter ended March 31, 2008. Total Income has decreased from Rs 138569.50 million for the quarter ended March 31, 2008 to Rs 125901.20 million for the quarter ended March 31, 2009.

L&T grew 2.32% at Rs1,341.80. The Company has posted a profit after tax of Rs 9985.20 million for the quarter ended March 31, 2009 as compared to Rs 9667.60 million for the quarter ended March 31, 2008. Total Income has increased from Rs 87372.10 million for the quarter ended March 31, 2008 to Rs 108357.90 million for the quarter ended March 31, 2009.

M&M surged 2.16% to Rs638.80. The Company has posted a net profit of Rs 4180.70 million for the quarter ended March 31, 2009 as compared to Rs 2211.00 million for the quarter ended March 31, 2008. Total Income has increased from Rs 31754.50 million for the quarter ended March 31, 2008 to Rs 37158.80 million for the quarter ended March 31, 2009.