Post Session Commentary - June 15 2009

The domestic stock market closed on a weak note on the back of heavy selling pressures across the sectoral indices backed by the weak global markets. The investors booked profits after a recent solid surge in the stock prices. There was weakness in the World stocks after the Finance Ministers from the Group of Eight countries on Saturday said that they have initiated the discussions regarding how to unwind the fiscal and monetary policy measures undertaken in response to the financial and economic crisis that spread last year. The volatility was high during the trading session and it drifted lower at the initial trade due to weak Asian Markets and lower index futures. From the sectoral front, the Bankex stocks remained in the lime light on the back of reports of a cut in the state set post office return rates that increased the expectations that the other rates would also trend lower. In the domestic front, the investors off-loaded position across almost all the sectors led by Oil and Gas, Metal, capital Goods, Realty and Auto index.

The weakness prevailed in the market since the initial bell as the domestic stock market today opened with a negative gap but soon recovered from the fall to enter into the positive territory. But the market did not able to sustain the momentum and again changed its gears to continue its southward journey till the final closing of the session. Moreover in the global arena, the US Markets closed mixed on Friday. There was narrow trading range in the southward throughout the day however towards the end some buying sentiments helped major indices to close in green. Materials stocks closed with a loss of 1.3%, which have provided leadership in recent weeks, were knocked lower as commodities came under pressure amid a rally in the U.S. dollar. On stock specific move investment services firm BlackRock (-6.04) trailed after updating its outlook to reflect its agreement to pay $13.5 billion for the global investors business from Barclays (-0.63).

Among the Sensex pack 10 stocks ended in positive territory while 20 closed in negative. The market breadth indicating the overall health of the market remained weak as 1,876 stocks closed in red while 767 stocks closed in green while 58 stocks remained unchanged in BSE.

The BSE Sensex closed lower by 362.42 points or 2.38% at 14,875.52 and NSE Nifty fell by 99.40 points or 2.17% at 4,484. The BSE Mid Caps and Small Caps closed with losses of 121.83 and 128.90 points at 5,113.20 and 5,885.76. The BSE Sensex touched intraday high of 15,261.03 and intraday low of 14,807.26.

Losers from the BSE Sensex pack are Sterlite Inds (7.61%), Reliance Inds (7.48%), Tata Steel (4.77%), L&T (4.76%), Hindalco Inds (4.58%) and DLF (4.37%).

Gainers from the BSE Sensex pack are Ranbaxy Labs (1.91%) followed by TCS (1.85%), HUL (1.74%), Reliance Infra (1.37%), Grasim Inds (1.04%) and ACC (0.94%).

On the global markets front the Asian markets which opened before the Indian market, closed in red. Taiwan Weighted, Strait Times, Hang Seng, Seoul Composite and Nikkei, closed lower by 3.45%, 2.55%, 2.07%, 1.13% and 0.95% at 6,225.56, 2,316.56, 18,498.96, 1,412.42 and 10,039.67 respectively..

European markets which opened after the Indian market are trading in negative. In Frankfurt the DAX index is trading lower by 2.11% at 4,962.10 and in London FTSE 100 is trading down by 1.64% at 4,369.30.

The BSE Oil and Gas index plunged (4.51%) or 474.08 points to close at 10,035.64. Main losers are Reliance Industries (7.48%), RPL (7.15%), Essar Oil (6.06%), Aban Offshore (4.96%) and Cairn India (2.31%).

The BSE Metal index dropped (3.86%) or 471.91 points at 11,748.54. Scrips that mostly lost are Welspun Gujarat Stahl (7.57%), Sterlite Industries (7.61%), SAIL (5.50%), JSW Steel (5.11%), Gujarat NRE (4.98%) and Hindustan Zinc (4.92%).

The BSE Capital Goods index ended lower by (3.66%) or 475.45 points at 12,517.21. reliance Industrial Infra (5.74%), Alstom Project (5.73%), Punj Lloyd (4.92%), Praj Industries (4.90%) and L&T (4.76%) ended in negative territory.

The BSE Realty index fell (3.31%) or 121.25 points to close at 3,540.86. Losers are India Bull Real (5.93%), Orbit Co (4.99%), Anant Raj Industries (4.98%), Akruti City (4.70%), Mahindra Life (4.53%) and Sobha Developers (4.47%).

The BSE Auto slipped (2.11%) or 103.12 points at 4,794.71. Losers are Ashok Leyland (4.19%), Tata Motors (4.01%), Mahindra & Mahindra (3.49%), MRF (3.43%) and Hero Honda (3.18%).

The BSE Consumer Durables index decreased (1.70%) or 50.91 points to close at 2,948.86. Losers are Blue Star (3.22%), Gitanjali Gems (3.22%), Rajesh Export (3.08%), Videocon Industries (0.67%) and Titan Industries (0.45%).

The BSE Power index decreased (1.62%) or 48.38 points at 2,935.28. Losers are GVK Power (7.59%), Torent Power (7.28%), Tata Power (2.92%) and Suzlon Energy (1.98%).

CG Impex Ltd fell 4.85% to close at Rs 5.69. The company has announced that the Board of Directors of the Company at its meeting held on June 06, 2009, inter alia, has, recommended for approval of the Shareholders, a Right Issue of Equity Shares in the ratio of three equity shares of the Company of Rs 10/- each for every one equity share of the Company held by the Shareholders of the Company as on a Record Date to be fixed later for this purpose.

Tanu Healthcare Ltd surged 4.76% to Rs3.30. The company has informed that as per the direction of the Honorable High Court, Mumbai, the Company has convened the EGM of Shareholder on June 13, 2009 in the matter of the Scheme of Amalgamation of Blue Cross Generic Pvt Ltd with Socrus Bio Sciences Ltd (Formerly Known as Tanu Healthcare Ltd). EGM of shareholders has approved the Scheme of Amalgamation.

3i Infotech Ltd dipped 4.14% to Rs80.95. The company has informed that, on June 15, 2009, the Company announces its entry into the Media & Broadcasting industry as a System Integrator and will offer a unique value proposition to media and broadcasting companies, with best-of--the-breed products from leading global Media & Broadcast solution vendors, complemented with the Companys own expertise in System integration and Project Management Services.

Gail India Ltd slipped by 1.52% to Rs282.65. The company has announced the following Audited results for the quarter & year ended March 31, 2009. The Company has posted a net profit of Rs 6300.20 million for the quarter ended March 31, 2009 as compared to Rs 7223.80 million for the quarter ended March 31, 2008. Total Income has increased from Rs 50349.50 million for the quarter ended March 31, 2008 to Rs 63220.80 million for the quarter ended March 31, 2009. The results for the Year ended March 31, 2009. The Company has posted a net profit of Rs 28037.00 million for the year ended March 31, 2009 as compared to Rs 26014.60 million for the year