Post Session Commentary - June 19 2009

After moving up and down, the domestic market finally closed with good gains due to fresh buying momentum emerged in key stocks after fall observed in previous sessions. Firm cues from the markets all over world along with higher US index futures also contributed to the upturn. The BSE Sensex ended above 14,500 level and NSE Nifty above 4,300 mark. On the sectoral front, investors on-loaded position across the sectors. Besides, most of the buying was seen in Capital Goods, Realty, Metal, IT, Bank, Power and Pharma stocks.

The market opened on pleasant note tracking favorable cues from the markets all over the world. In the global arena, the US Markets closed in mixed on Thursday, on the back of some encouraging economic reports. The initial jobless claims in US rose slightly to 608,000 for the week ending June 13 from a revised 605,000 in the prior week. Additionally, the Philadelphia Fed Index for June came in with a less dismal-than-expected reading as it rose to negative 2.2 from negative 22.6 last month. Further, Indian benchmark indices continued to trade in positive territory with a bit if volatility till afternoon trade. However, the market was unable to carry on the same momentum and slipped into red on account selling pressure witnessed in selective stocks. Finally, market bounced back from lower level with sharp rise in global stocks to close near the day’s high.

Among the Sensex pack 24 stocks ended in positive territory while 6 closed in negative. The market breadth indicating the overall health of the market remained positive as 1,345 stocks closed in green while 1293 stocks closed in red while 66 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 256.36 points or 1.80% at 14,521.89 and NSE Nifty ended up by 62.20 points or 1.46% at 4,313.60. The BSE Mid Caps and Small Caps closed with gains of 81.87 and 45.52 points at 4,958.73 and 5,617.96. The BSE Sensex touched intraday high of 14,559.08 and intraday low of 14,179.77.

Gainers from the BSE Sensex pack are Tata Steel (5.85%), L&T Ltd (5.71%), Tata Motors (5.08%), Reliance Infra (5.08%), JP Associates (4.68%), Ranbaxy Lab (3.68%), ITC Ltd (3.50%), Grasim Industries (3.15%) and Sterlite Industries (2.97%).

Losers from the BSE Sensex pack is NTPC Ltd (2.20%), Tata Power (1.06%), ACC Ltd (1.02%), M&M Ltd (0.58%), Sun Pharma (0.24%) and ONGC Ltd (0.23%).

On the global markets front the Asian markets which opened before the Indian market, closed in green after upbeat US factory and jobs data provided indicated that the global economy is recovering from its deep recession. Shanghai Composite, Hang Seng, Nikkei, Strait Times and Seoul Composite closed higher by 26.59, 144.59, 82.54, 35.98 and 7.58 points at 2,880.49, 17,920.93, 9,786.26, 2,273.18 and 1,383.34 respectively.

European markets which opened after the Indian market are trading in positive. In Frankfurt the DAX index is trading higher by 21.60 points at 4,859.08 and in London FTSE 100 is trading up by 82.67 points at 4,363.53.

The BSE Capital Goods index advanced by (4.58%) or 537.30 points to close at 12,259.94. Gainers are Suzlon Energy (10.50%), SKF India (7.51%), Kalpat Power T (6.97%), Punj Lloyd (6.01%), L&T Ltd (5.71%) and Alstom Proje (5.12%).

The BSE Realty index gained (3.13%) or 99.77 points to close at 3,289.90. Main gainers are India Bull Real (6.14%), Unitech Ltd (4.91%), Housing Development (3.12%), Mahindra Life (2.98%) and DLF Ltd (2.56%).

The BSE Metal index increased by (2.81%) or 301.61 points at 11,038.99. Scrips that gained are Ispat Industries (7.28%), Tata Steel (5.85%), JSW Steel (5.52%), Welspan Gujarat SR (4.31%) and Jindal Steel (3.99%).

The BSE IT ended higher by (2.32%) or 74.37 points at 3,276.83 on reports that the forthcoming Union Budget may extend the corporate tax holiday enjoyed by export-oriented units and software parks by three more years, as the government looks forward to clearing the air for companies in these segments reeling under a demand slump in key Western markets. Gainers are Financ Tech (6.71%), Mphasisi Tech (6.21%), Oracle Fin (3.83%), Infosys Tech (2.88%) and NIIT Ltd (2.39%).

The BSE Bank index inclined (1.82%) or 145.27 points to close at 8,111.04 on higher advance tax payment in Q1 June 2009. Gainers are Bank of India (6.99%), Yes Bank (4.18%), Canara Bank (3.88%), Indus Ind Bank (3.42%) and Axis Bank (3.22%).

The BSE Power index closed up by (1.81%) or 50.31 points at 2,831.76 as Suzlon Energy (10.50%), Lanco Infra (6.47%), Reliance Infra (5.08%), ABB Ltd (4.40%) and Siemens Ltd (3.49%) ended in positive territory.

Tata Consultancy Services ended up by 0.29%. The company announced the opening of its third global delivery center in Queretaro. This represents a key milestone in the company''s expansion across Latin America and its Global Network Delivery Model, recognized as the benchmark of excellence in software development.

Reliance Infrastructure advanced 5.08% on reports a consortium of the company and Hyundai Engineering is likely to win a contract worth Rs 1500 crore to connect Mumbai''s Bandra-Worli sea link with Haji Ali.

Lupin Ltd gained 0.31% after the company received US drug regulator''s nod for a generic drug.

Trimurthi Drugs & Pharmaceuticals Ltd closed lower by 4.93%. The company has informed that the Board of Directors of the Company at its meeting held on June 18, 2009, inter alia, has discussed on the issue of entering into an MOU with SKF life science, Represented by Mr. Arvind Kumar Bhangadia and noted the draft MOU put before the meeting and dicussed on SKF the various terms and conditions and finalized the draft MOU.