Post Session Commentary - June 2 2009

The domestic market closed the session on a mixed note as Indian benchmark index BSE Sensex closed just above the dotted line while NSE Nifty closed marginally lower. Tracking the positive global markets, the Indian benchmark indices opened with decent gains but did not able to sustain at the higher level as the profit booking takes a lead across the selective indices. The weak start of European markets and weakening of Asian markets after initial surge dampened the sentiments of the investors to some extent that led to selling pressure across the certain counters. However, the market made a smart turnaround in the final hours of the session due to some favoring domestic data like the India’s infrastructure sector output jumped 4.3% in April from 2.3% in the same month last year. Moreover, the output has risen 2.7% in the March 2009 fiscal as against 5.9% growth in 2007/08.

The Indian stock market witnessed strong volatility throughout the trading session as the investors takes calculated steps to book further position after four straight day of continuous rally. However the late buying at the lower levels led the market to pare mst of its losses to close almost on a flat note. Moreover, in the global arena, the US Markets closed in green on the back of good economic data. Flurry of economic data pleased the investors bringing broad based buying sentiments that pushed S&P 500 to fresh highs for 2009 and the index also managed to close above 200-day moving average for the first time since December 2007. The personal income for the month of April recorded a surprise growth of 0.5% and on the other hand the personal spending for April declined a better than expected 0.1%. Construction spending for the month of April showed a surprise growth of 0.8% month-over-month. The ISM Manufacturing index for May was also inline with the expectations at 42.8. However, benchmark indices showed volatility during the session with BSE Sensex closed above 14,850 level and NSE Nifty above 4,520 mark. From sectoral front, investors on-loaded position across the sectors led by Consumer Durables, Metals and Auto while Realty, Power and PSU index remained on the sellers radar.

Among the Sensex pack 13 stocks ended in green territory and 17 in red. The market breadth indicating the overall health of the market remained firm as 1,664 stocks closed in positive while 1,130 stocks closed in negative and 56 stocks remained unchanged in BSE.

The BSE Sensex closed up by 34.28 points or 0.23% at 14,874.91 and NSE Nifty closed marginally lower by 4.65 points or 0.10% at 4,525.25. BSE Mid Caps and Small Caps closed with gains of 42.47 and 56.20 points at 5,246.68 and 6,252.98. The BSE Sensex touched intraday high of 14,994.31 and intraday low of 14,608.23.

Gainers from the BSE Sensex pack are Tata Steel (8.24%) followed by HDFC (4.19%), Sterlite Industries (3.87%), Tata Motors (3.31%) and M&M (2.10%).

Losers from the BSE Sensex pack are ACC Ltd (5.83%), Ranbaxy Labs (4.50%), Reliance Infra (4.34%), Tata Power (3.36%), DLF (2.43%) and HDFC bank (2.41%).

On the global markets front the Asian markets which opened before the Indian market, closed mixed. Hang Seng, Strait Times and Seoul Composite closed lower by 2.64%, 0.18% and 0.16% at 18,389.08, 2,375.82 and 1,412.85. While Nikkei and Shanghai Composite closed up by 0.27% and 0.11% at 9,704.31 and 2,724.30.

European markets which opened after the Indian market are trading mixed. In Frankfurt the DAX index is trading up by 0.11% at 5,148.42 and in London FTSE 100 is trading lower by 0.53% at 4,482.49.

The BSE Consumer Durables index increased (2.63%) or 74.62 points to close at 2,906.55. Main gainers are Rajesh Export (9.56%), Blue Star (3.99%), Titan Industries (2.31%) and Gitanjali Gems (1.89%).

The BSE Metal index surged (2.48%) or 283.62 points at 11,740.89. Scrips that mostly gained are Ispat Industries (11.34%), Tata Steel (8.24%), Gujarat NRE (9.68%), Hindustan Zinc (6.68%), Jai Corp (4.99%) and Sterlite Industries (3.87%).

The BSE Auto index also ended higher by (1.37%) or 64.25 points at 4,764.30. Ashok Leyland (7.82%), Tata Motors (3.31%), Bajaj Auto (2.40%), Hero Honda (2.24%) and Mahindra & Mahindra (2.10%) ended in positive territory.

The BSE Realty index fell (2%) or 80.67 points to close at 3,954.92. Losers are Phoenix Mill (3.05%), DLF (2.43%), Omaxe Ltd. (2.26%), Ansal Infra (1.55%) and Parsavnath (1.18%).

The BSE Power slipped (1.65%) or 48.93 points at 2,908.12. Losers are Tata Power (3.36%), Neyiveli Lig (3.27%), GVK Power (2.07%), Torent Power (2.31%) and Suzlon Energy (2.08%).

The BSE IT index gained (0.17%) or 5.37 points to close at 3,121.34. Gainers are Rolta Ind (11.42%), Tech Mahindra (7.09%), Patni Computer (4.99%), NIIT Ltd. (3.18%) and HCL Technologies (3.87%).

The BSE Bankex decreased (0.31%) or 25.18 points at 8,163.03. Losers are Bank of India (4.55%), Indus Ind Bank (4.05%), Kotak Bank (2.95%), Oriental Bank (2.88%), PNB (2.55%) and HDFC Bank (2.41%).

Punjab National Bank fell 2.55%. The Bank will be raising Upper Tier II Bonds as PNB Upper Tier II Bond Issue Series IX through an issue size of Rs 500 crore. The proposed date of opening is June 04, 2009 and proposed date of closing is June 04, 2009.

Hindustan Petroleum Corporation Ltd (HPCL) slipped 3.12%. The company has posted a net profit of Rs 51040.40 million for the quarter ended March 31, 2009 as compared to Rs 3845.10 million for the quarter ended March 31, 2008. Total Income has decreased from Rs 317794.90 million for the quarter ended March 31, 2008 to Rs 255804.60 million for the quarter ended March 31, 2009.

Ambuja Cements Ltd galloped 2.40% after cement shipments rose 8.26% to 16.38 lakh tons in May 2009 over May 2008.

Hero Honda Motors Ltd gained 2.24% to Rs. 1,397.30 after vehicle sales rose 22.5% to 3.82 lakh units in May 2009 over May 2008.

Shree Cement Ltd spurted 1.52% after cement shipments surged 32.19% to Rs 7.35 lakh tons in May 2009 over May 2008.