Pre Session Commentary - May 5 2009

Today domestic markets are likely to open with positive as the US markets closed in green and majority of Asian markets have also opened positive. After a staggering surge in yesterday’s trade today one could expect some profit booking pressures across broader level. The cues from other Asian markets and also the opening of the European markets would further decide the movements of domestic benchmark indices. The US home sales data for March shows some sign of improvement and therefore domestic realty sector may get some boost today.

On Monday, domestic markets spurred with staggering numbers as the traders pushed the front line stocks to new highs. The global positive news further amplified the surge towards the northward. The Chinese Purchasing Manager’s Index rose to above the comfort level of 50 which means that the manufacturing is expanding in China. And on the other hand the Consumer Confidence index in US recorded phenomenal readings thus paving way for a certain bull run across the globe. The Sensex closed above the 12k mark ever since October 2008 and Nifty sparked above the 3650 level. Phenomenal buying was witnessed in sectors like Metal, IT, Bankex, CG and Teck stocks as they spurred by 8.77%, 8.40%, 7.89% and 5.88% respectively. We expect the markets to be trading positive with mild volatility.

The BSE Sensex closed higher by 731.50 points at 12,134.75 and NSE Nifty ended up by 180.05 points at 3,654.00. BSE Mid Caps and Small Caps closed with gains of 137.43 points 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.

On Monday, the US stock markets closed in green. The relative strength of the foreign markets along with the China’s April PMI report which rose more than 50 helped boost the sentiments of investors. Optimism was further bolstered by news that pending home sales for March advanced by a better-than-expected 3.2% month-over-month. On the other hand, reports suggest Wells Fargo need more capital and the Wall Street Journal reports that Citi Group may need addition capital injection of $10 billion. US light crude oil futures for June inclined by 2.3% at $54.43 per barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) inclined by 214.33 points to close at 8,426.71 The NASDAQ Composite (RIXF) index gained by 44.36 points to close at 1,763.56 and the S&P 500 (SPX) inclined by 29.72 points to close at 907.24.
Today major stock markets in Asia are trading positive. Shanghai composite is flat at 2,555.28. Hang Seng is trading low by 78.96 points at 16,302.09 followed by, Strait Times which is up by 26.40 points at 2,055.11. While Taiwan Weighted is also up by 30.87 points at 6,361.27 and Seoul Composite points is also up by 28.56 points at 1,397.92 respectively. Japan’s Nikkei is up with phenomenal gains of 149.11 points at 8,977.37.

Indian ADRs ended mixed. In technology sector, Infosys ended down by 0.36% along with Satyam by 1.67%. Further, Wipro gained 0.96% whereas Patni Computers closed down by 1.02%. In banking sector ICICI Bank lost 0.39 % while HDFC Bank advanced by 1.24%. In telecommunication sector Tata Communication gained 0.04% whereas MTNL declined by 0.34%. Sterlite Industries increased by 0.35%.

The FIIs on Monday stood as net buyers in equity and debt. Gross equity purchased stood at Rs 2,869.30 Crore and gross debt purchased stood at Rs 410.10 Crore, while the gross equity sold stood at Rs 2,524.70 Crore and gross debt sold stood at Rs. 244.50 Crore. Therefore, the net investment of equity and debt reported were Rs 344.50 Crore and Rs 165.60 Crore respectively.

On Monday, the Rupee closed at Rs. 49.57/59, 12 paise stronger than its previous close of Rs. 50.04/05. The rupee gained strength on the back of staggering rise in the local stock markets increasing further hopes of green back inflow.

On BSE, total number of shares traded were 43.15 Crore and total turnover stood at Rs 4,753.56 Crore. On NSE, total number of shares traded was 93.44 Crore and total turnover was Rs 15,862.57 Crore.

Top traded volumes on NSE Nifty – Unitech with total volume traded 107449449 shares, followed by Suzlon Energy with 34312299 shares, DLF with 19979337 shares, ICICI Bank 18597242 shares and SAIL with 16121776 shares respectively.

On NSE Future and Options, total number of contracts traded in index futures was 680991 with a total turnover of Rs 11,908.09 Crore. Along with this total number of contracts traded in stock futures were 413220 with a total turnover of Rs 16,335.49 Crore. Total numbers of contracts for index options were 923214 with a total turnover of Rs 16,869.21 Crore and total numbers of contracts for stock options were 29216 and notional turnover was Rs 1,232.02 Crore.

Today, Nifty would have a support at 3,689 and resistance at 3,708 and BSE Sensex has support at 12,180 and resistance at 12,307.