Post Session Commentary - June 1 2009

The domestic market continued its northward journey for the fourth straight session on the back sustained buying across the sectoral indices. The sentiment was boosted on the back of favoring cues from the global markets as well as anticipation of the strong push for the economic reforms by the newly elected UPA government. The sentiment also got a further push due to the NSE announcement after the trading hours on Friday regarding the reduction in the lot size of a number of derivatives contracts as a part of a periodic review to meet a previously set value of the contract at Rs2 lakh. The changes for most of the stocks will be applicable from July 2009 derivatives contracts. Moreover, the signs of recovery in the Indian economy as the manufacturing activity in India expanded for the second straight month in May 2009 to its highest in eight months, a survey showed. The Market Purchasing Managers'' Index (PMI) based on a survey of 500 companies rose to 55.7 in May 2009 from April''s 53.3.

The Indian market opened the session with a upbeat note tracking the positive global markets and favoring cues from the domestic markets. But the market pared some of its early gains soon after the firm start as the profit booking prevails across selective sectoral indices. But again the market gained momentum after the mid session to close the day with decent gains. Moreover, in the global arena, the US Markets on Friday closed in green. After a gyrating start the markets managed to close with remarkable gains. Financial stocks were the later movers as the sector started with a loss of 1% however towards the end it closed with a gain of 3%. Diversified metal and mining companies were in the limelight with phenomenal gains of 4.2% and 3.3%.The GDP for the first quarter recorded a drop of 5.7% better than the 6.1% decline that was report in the advance GDP reading. However, benchmark indices gained strength during the session with BSE Sensex closed above 14,800 level and NSE Nifty above 4,520 mark. From sectoral front, investors on-loaded position across the sectors led by Realty, Metal, IT, FMCG, Consumer Durables and Power index.

Among the Sensex pack 23 stocks ended in green territory and 7 in red. The market breadth indicating the overall health of the market remained firm as 2,289 stocks closed in positive while 542 stocks closed in negative and 40 stocks remained unchanged in BSE.

The BSE Sensex closed up by 215.38 points or 1.47% at 14,840.63 and NSE Nifty closed higher by 80.95 points or 1.82% at 4,529.90. BSE Mid Caps and Small Caps closed with gains of 147.47 and 209.96 points at 5,204.21 and 6,196.78. The BSE Sensex touched intraday high of 14,906.81 and intraday low of 14,655.49.

Gainers from the BSE Sensex pack are Tata Steel (7.79%) followed by Sterlite Industries (6.75%), ACC (6.40%), NTPC (6.17%), JP Associates (6.12%) and M&M (5.25%).

Losers from the BSE Sensex pack are ICICI bank (2.36%) along with BHEL (2.27%), Bharti Airtel (1.67%) and Ranbaxy Labs (1.51%).

On the global markets front the Asian markets which opened before the Indian market, closed in green. Hang Seng, Sanghai Composite, Strait Times, Nikkei and Seoul Composite closed up by 3.95%, 3.36%, 2.19%, 1.63% and 1.38% at 18,888.59, 2,721.28, 2,380.07, 9,677.75 and 1,415.1 respectively.

European markets which opened after the Indian market are trading in green. In Frankfurt the DAX index is trading up by 3.08% at 5,092.88 and in London FTSE 100 is trading higher by 1.39% at 4,479.38.

The BSE Realty index increased (5.65%) or 215.70 points to close at 4,035.59. Main gainers are Unitech (15.61%), Orbit Co (9.35%), HDIL (8.17%), Penland (8.01%), Phoenix Mill (7.82%) and Akruti City (4.99%).

The BSE Metal index surged (5.32%) or 578.85 points at 11,457.27. Scrips that mostly gained are Welspun Gujarat Stahl (14.60%), Gujarat NRE (9.94%), Jindal Saw (8.88%), Jindal Steel (8.81%), Tata Steel (7.79%) and Sterlite Industries (6.75%).

The BSE IT index also ended higher by (3.95%) or 118.42 points at 3,115.97. Rolta Ind (12.22%), NIIT Ltd. (11.43%), Tech Mahindra (10.28%), Oracle Fin (5.11%) and Infosys Technologies (4.67%) ended in positive territory.

The BSE FMCG index grew (2.76%) or 57.97 points to close at 2,154.61. Gainers are ITC (5.04%), United Spirits (4.61%), Colgate Palmolive (1.14%) and HUL (0.76%).

The BSE Consumer Durables advanced (2.68%) or 73.86 points at 2,831.93. Gainers are Videocon Industries (5.71%), Rajesh Export (5.61%), Gitanjali Gems (2.99%) and Titan Industries (2.43%).

The BSE Power index gained (2.63%) or 75.69 points to close at 2,957.05. Gainers are Suzlon Energy (15.98%), NTPC (6.17%), Power Grid (4.88%), Neyivelli Lig (3.05%) and Torent Power (2.79%).

The BSE Auto increased (1.94%) or 89.44 points at 4,700.05. Gainers are Mahindra & Mahindra (5.25%), Ashok Leyland (4.47%), Hero Honda (1.92%) and Maruti Suzuki (1.84%).

Satyam Computer Services Ltd surged 6.09% to Rs56.65. The company announced the appointment of Venki Prathivadi as the new country manager for Satyam Australia and New Zealand (ANZ). Satyam has also appointed Vijay Prasad as principal advisor to the ANZ region

Parsvnath developers shot up 4.96% to Rs101.60. The company gets approval for Parsvnath La Tropicana Premium luxury project in the heart of Delhi worth Rs 1300 Crores.

Maruti Suzuki India Limited grew 1.84% to Rs1040.30. The company sold a total of 79,872 vehicles in May 2009. This includes 9,087 units for export. The company had sold a total of 69,001 vehicles in May 2008.

Glenmark Generics Inc. USA (GGI), a subsidiary of Glenmark Generics Limited (GGL), has received the final ANDA approval from the United States Food arid Drug Administration (U.S. FDA) for Hydralazine Hydrochioride Tablets. The product has been approved in the active strengths of 10 mg, 25mg, 50mg and 100 mg as the AB rated generic Pliva''''s equivalent Hydralazine Hydrochloride. : Glenmark will immediateliy commence marketing and shipping their generic version of the four presentations in various sku''''s within the U.S market.