Post Session Commentary - May 4 2009

Indian market witnessed sharp rally to close with strapping gains tracking firm cues from the markets all over the world. BSE Sensex zoomed over 6% to close above 12,100 mark for the first time since Oct''08, and NSE Nifty surged over 5% to end above 3,600 level. Benchmark indices were on roll on a survey that showed activity in Indian factories expanded for the first time in five months in April as growing orders pipeline pointed to a tentative recovery. The ABN Amro Bank''s purchasing managers'' index (PMI) based on a survey of 500 companies increased to 53.3 in April from 49.5 during March. Any level above 50 indicates expansion in manufacturing activity.

The market opened on pleasant note after a long weekend mirroring strength across Asian markets. Further, domestics stocks continued to touch a new high as US consumer confidence has improved to its best level since September 2008. The consumer sentiment index increased to 65.1 in April 2009 from 57.3 in March 2009. Bulls were on full momentum to cope up with the early gains in the US and other markets across the world during the previous two day’s trading close of the domestic markets. Phenomenal opening of European markets also helped traders to keep there buying morale firm. Finally, markets concluded its buoyant movement with mammoth gains. In sectoral indices, strong buying was witnessed mainly in Metal, IT, Bank, Capital Goods, Teck, FMCG, Reality, Auto and Consumer Durables, stocks. The broader market stocks also followed the same trend as Mid Cap and Small Cap stocks ended with gains of more than 3% each.

Among the Sensex pack all 30 stocks ended in green territory. The market breadth indicating the overall health of the market remained extremely positive as 1771 stocks closed in green while 770 stocks closed in red and 71 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 731.50 points at 12,134.75 and NSE Nifty ended up by 180.05 points at 3,654. BSE Mid Caps and Small Caps closed with gains of 137.43 and 140.80 points at 3,651.29 and 4,081.70 respectively. The BSE Sensex touched intraday high of 12,161.90 and intraday low of 11,635.24.

Gainers from the BSE Sensex pack are Sterlite Industries (16.56%), Hindalco (13.74%), M&M Ltd (13.07%), HDFC (13.06%), HDFC (7.37%), ICICI Bank (10.74%), Tata Steel (10.48%), Wipro Ltd (10.32%), ITC Ltd (8.75%), HDFC Bank (8.54%), L&T Ltd (8.28%), Infosys Tech (8.09%), Reliance Infra (7.75%), TCS Ltd (7.06%), SBI (6.93%), RCom (6.61%), Tata Motors (6.13%) and JP Associates (6.03%).

On the global markets front the Asian markets which opened before the Indian market, ended higher on recovery hopes as U.S. manufacturing activity in April contracted at a slower-than-expected pace last month that was slowest rate since September. Expansion in China for the first time in nine months and pledge of regional leaders to start a $120 billion foreign-currency reserve pool, also contributed to the positive sentiments. Shanghai Composite, Hang Seng, Nikkei 225, Straits Times index and Seoul Composite ended higher by 82.34, 860.06, 149.11, 108.43 and 28.56 points at 2,559.91, 16,381.05, 8,977.37, 2,028.71 and 1,397.92 respectively.

European markets which opened after the Indian market are trading in green. In Frankfurt the DAX index is trading up by 78.58 points at 4,848.03 and in Paris CAC 40 is trading higher by 34.36 points at. 3,194.21. The UK markets are closed today for a public holiday.

The BSE Metal index outperformed the benchmark indices and gained (8.77%) or 603.66 points at 7,489.47 on rise in metal prices on the London Metal Exchange. Scrips that gained are sterlite Industries (16.56%), Hindalco (13.74%), Tata Steel (10.48%), Hindustan Zinc (9.44%) and Jindla Saw (8.14%).

The BSE IT ended up by (8.40%) or 223.69 points at 2,887.04 on hopes that measures by the US government to revive the economy may provide results. Gainers are HCL Tech (18.71%), NIIT Ltd (12.48%), Finance Tech (11.93%), Wipro Ltd (10.32%) and Infosys Tech (8.09%).

The BSE Bank index increased by (7.89%) or 448.31 points to close at 6,133.53 on hopes that drop in interest rates will flourish lending growth. Main gainers are ICICI Bank (10.74%), Kotak Bank (10.27%), Axis Bank (9.57%), Indus Ind Bank (8.63%), Allahabad Bank (8.48%) and Yes Bank (7.90%).

The BSE Capital Goods stocks also advanced by (5.88%) or 465.42 points to close at 8,374.17. Major gainers are Thermax Ltd (10.36%), Walchand In (9.98%), Punj Lloyd (9.97%), Crompton Greaves (9.30%) and Siemens Ltd (9.21%).

The BSE Teck index gained (5.86%) or 126.78 points to close at 2,289.78. Gainers are HCL Tech (18.71%), NIIT Ltd (12.48%), Finance Tech (11.93%), Wipro Ltd (10.32%), Infosys Tech (8.09%) and Idea Cell (7.58%).

The BSE FMCG index also ended up by (5.43%) or 113.74 points at 2,208.74. Ruchi Soya (19.43%), ITC Ltd (8.75%), United Spr (3.22%), Godrej Cons (3.18%) and Nestle Ltd (2.99%) ended in positive territory.

Mahindra and Mahindra zoomed by 13.07%. The company has reported 14.8% increase in total sales in April 2008 as compared to a year ago period. The auto giant’s domestic sales grew 16% on an annual basis while exports declined by 39.3%.

Tata steel surged by 10.48% after a news that it may accept an invitation from the Liberian government to rebid for a $1.6-billion iron ore mine, from which was initially barred.

SBI is closed up by 6.93%. On 2nd May, the bank reduced deposit rates by 0.25% on all tenures effective from May 4. With this, 7.5% rate will be applicable to one-year to less than two-year deposits as against 7.75% earlier.

Ranbaxy Laboratories ended higher by 2.83%. The company commenced Phase III clinical trial for its new Anti-malaria combination drug, Arterolanc maleate + Piperaquine phosphate in India, Bangladesh and Thailand.

Siemens Ltd gained 9.21%. The engineering major has signed a contract with Gujarat-based Adani Power for transportation of power from its Mundra unit in Gujarat to Haryana. The contract values Rs 1,380 crore. The project is scheduled to be completed within two years and will be western India''s second private-private partnership (PPP) power transmission line.

TVS Motor Company surged 5.14% after two-wheeler sales rose 3% to 1,13,119 units in April 2009 over April 2008.

Bharti Airtel gained 1.15%. The company and Alcatel-Lucent have formed a Joint Venture to manage Bharti Airtel’s pan-India Broadband and Telephone services and help airtel’s transition to Next Generation Networks.

Maruti Suzuki India increased by 2.85% after vehicle sales rose around15% to 71,748 units in April 2009 over April 2008.