Post Session Commentary - May 7 2009

Indian market rebounded from yesterdays’ losses to end the day with gain of more than 1% mirroring favorable cues from global markets. Report that US April job cuts were not as bad as feared, also contributed to the positive attitude. Companies in the US axe probable 491,000 workers from payrolls in April, while 6,45,000 job cuts were expected. Though, market also exhibited volatility since initial bell and pared some of gains later on. Bench mark indices recuperated strength since afternoon trade on buying by foreign funds.

The market opened on positive terrain backed by positive cues from the markets all over the world. The US stock markets on Wednesday closed higher with financial stocks rallied on the back of leaked government''s "stress tests" results that indicated that the major banks are better capitalized than expected. Further, domestic bourses continued to trade above yesterday’s closing amid volatility. Firm trading in European markets also contributed to gain momentum. After paring some of gains during afternoon, market regained same momentum to close on upbeat note led by significant buying momentum. In sectoral indices, mainly Metal, Consumer Durable, Realty, Bank, Pharma, Oil & Gas and Capital Goods stocks contributed to the buying momentum. The broader market stocks out performed the benchmark indices as gained more than 2.5% each. However, FMCG stocks witnessed selling from these baskets.

Among the Sensex pack all 19 stocks ended in green territory and 11 in red. The market breadth indicating the overall health of the market remained positive as 1696 stocks closed in green while 828 stocks closed in red and 92 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 164.19 points at 12,116.94 and NSE Nifty ended up by 58.85 points at 3,683.90. BSE Mid Caps and Small Caps closed with gains of 101.10 and 110.59 points at 3,776.94 and 4,263.60 respectively. The BSE Sensex touched intraday high of 12,143.95 and intraday low of 11,981.13.

Gainers from the BSE Sensex pack are Sterlite Industries (13.78%), Hindalco (11.25%), Tata Steel (8.76%), Wipro Ltd (5.80%), HDFC (3.86%), Maruti Suzuki (3.72%), SBI (3.27%), Tata Motors (3.05%), Bharti Airtel (2.92%), RCom (61.85%), Reliance (1.82%), L&T Ltd (1.66%) and ICICI Bank (1.53%).

Losers from the BSE Sensex pack are M&M Ltd (2.83%), ACC Ltd (2.44%), HUL (1.68%), Grasim Industries (1.47%), NTPC (1.34%), ITC Ltd (1.25%), Infosys Tech (0.86%) and Sun Pharma (0.67%).

On the global markets front the Asian markets which opened before the Indian market, ended higher on better than expected US and Australian job reports. Timothy Geithner, US Treasury Secretary assured that none of country’s banks are insolvent. Shanghai Composite, Hang Seng, Nikkei 225, Straits Times index and Seoul Composite ended up by 4.93, 383.32, 408.33, 62.57 and 7.63 points at 2,597.45, 17,217.89, 9,385.70, 2,241.60 and 1,401.08 respectively.

European markets which opened after the Indian market are trading in green. In Frankfurt the DAX index is trading up by 74.32 points at 4,955.03 and in London FTSE 100 index is trading higher by 108.16 points at. 4,504.65.

The BSE Metal index outperformed the benchmark indices as ended up by (8.22%) or 619.71 points at 8,155.08 on rise in metal prices on the London Metal Exchange. Scrips that gained are Ispat Industries (14.85%), Hindustan Zinc (14.77%), Sterlite Industries (13.78%), JSW Steel (12.79%) and Hindalco (11.25%).

The BSE Consumer Durable index gained (3.72%) or 68.52 points at 1,912.44. Scrips that gained are Blue Star L (5.56%), Videocon Ind (3.35%), Titan Ind (3.35%), Gitnanjali GE (3.14%) and Rajesh Export (1.90%).

The BSE Realty ended up by (1.90%) or 44.34 points at 2,382.51 on hopes that lower rates will encourage demand. Gainers are Pheonix Mill (7.57%), Orbit Co (4.96%), Housing Dev (4.80 %), Unitech Ltd (4.15%) and Ansal Infra (2.84%).

The BSE Bank index increased by (1.85%) or 112.82 points to close at 6,206.46 on hopes that drop in interest rates will flourish lending growth. Main gainers are Yes Bank (4.75%), Canara Bank (4.60%), Bank of Baroda (4.01%), Kotak Bank (3.53%) and Punjab National Bank (3.52%).

The BSE Pharma stocks also advanced by (1.74%) or 53.82 points to close at 3,154.89. Major gainers are Bil Care Ltd (13.73%), Dishman Pharma (9.60%), Piramal Health (8.72%), Divi’s Lab (8.49%) and Lupin Ltd (4.34%).

The BSE FMCG index lost (0.71%) or 15.13 points to close at 2,103.50. Losers are HUL (1.68%), Godrej Cons (1.42%), ITC Ltd (1.25%) and Nestle Ltd (0.75%).

Bhushan steel sharply jumped 36.39% after subsidiary of the company called Bhushan Energy has acquired 0.39% of Orissa Sponge Iron & Steel at Rupees 332.7 per share.

Bharat Heavy Electrical Ltd ended up by 0.28%. The company has touched a landmark by posting a turnover of Rs 5,405 crore in 2008-09 through products developed through its in-house research and development efforts.

McNally Bharat Engineering increased by 4.96%. The company has signed a MoU with Germany-based KHD Humboldt Wedag International GMBH and its subsidiaries in Germany, India and Hong Kong to buy their various businesses.

Hindustan Zinc advanced by 14.77%. The company announced that ongoing exploration activities have yielded significant success with an increase of 46.3mn tons to its reserves and resources, prior to a depletion of 6.7mn tons in FY09.

Tata Power lost 0.31%. Industrial Energy Limited (IEL), a joint venture between Tata Power (74%) and Tata Steel (26%), announced the commissioning of 1x120 MW - power house 6 at Jamshedpur.

Tata Communications fell 0.07% to despite forming an alliance with a Russian company, RTComm to provide joint data services between the carriers in Russia and the rest of the world.