Post Session Commentary - June 24 2009

Indian market gathered most of momentum after mid session to end the day in positive terrain. Besides, volatility also ruled the market due to of expiry of June futures and options contracts due tomorrow, 25th June 2009. Benchmark indices recovered from initial losses and picked up momentum along with other Asian stocks. In addition, investors revealed positive attitude to support the market tracking firm trading in European markets along with higher US index futures. BSE Sensex ended above 14,400 level and NSE Nifty closed around 4,300 mark.

The market today opened above the previous closing in line with other Asian markets. However, the US Markets closed mixed on Tuesday after a sharp choppy session on the back of the home sales report. The annualized existing home sales for May stood at 4.77 million units, which is the highest rate since October and up 2.4% from the previous month but less than the expectations of a 3% month-over-month increase. Domestic market suddenly lost ground and slipped lower on some selling pressure. Worries about agricultural production due to uncertainty existing in monsoon kept the sentiments weak. Further, benchmark indices managed to gain impetus and witnessed recovery from day’s low amid positive cues from the global markets. Finally market closed with gains backed by buying support emerged mostly during second half of trading. From the sectoral front, Power, Consumer Durables, Pharma, Realty, Auto Teck and Consumer Durables stocks contributed to most of the buying support. BSE Mid Cap and the Small Cap indices also remained in limelight during the trading session. However, Bank stocks were unable to gain favour from the market.

Among the Sensex pack 24 stocks ended in green territory and 6 in red. The market breadth indicating the overall health of the market remained positive as 1801 stocks closed in green while 797 stocks closed in red and 70 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 98.72 points at 14,422.73 and NSE Nifty ended up by 45.95 points at 4,292.95. BSE Mid Caps and Small Caps closed with gains of 117.50 and 126.63 points at 5,059.84 and 5,719.03 respectively. The BSE Sensex touched intraday high of 14,479.82 and intraday low of 14,207.02.

Gainers from the BSE Sensex pack are JP Associates (6.01%), Sun Pharma (5.00%), TCS Ltd (4.33%), Tata Motors (4.20%), Grasim Industries (4.20%), ACC Ltd (3.24%), Reliance Infra (2.88%), M&M Ltd (2.84%), Hindalco (2.76%), TCS Ltd (2.67%), ONGC Ltd (2.39%) and RCom (1.82%).

Losers from the BSE Sensex pack are HDFC Bank (1.97%), HDFC (1.96%), ICICI Bank (1.16%), Sterlite Industries (1.00%), Reliance (0.79%) and Ranbaxy Lab (0.29%).

On the global markets front the Asian markets which opened before the Indian market, ended higher. Shanghai Composite, Hang Seng Nikkei 225, Straits Times index and Seoul Composite closed up by 29.60, 353.78, 40.71, 52.86 and 3.25 points at 2,922.30, 17,892.15, 9,590.32, 2.278.96 and 1,363.79 respectively.

European markets, which opened after the Indian market, are trading in green. In Frankfurt the DAX index is trading higher by 43.14 points at 4,750.29 and in London FTSE 100 is trading up by 13.89 points at. 4,243.91.

The BSE Power index increased by (2.82%) or 78.89 points to close at 2,877.06. Main gainers are Torrent Power (16.05%), Suzlon Energy (9.07%), GVK Power (5.52%), Crompton Greaves (4.99%) and ABB Ltd (4.58%).

The BSE Capital Goods ended up by (2.52%) or 309.27 points at 12,567.68. Gainers are Suzlon Energy (9.07%), Punj Lloyd (6.17%), Crompton Greaves (4.99%), Gammon Indi (4.98%) and ABB Ltd (4.58%).

The BSE Pharma stocks also gained (2.39%) or 86.84 points to close at 3,717.64. Major gainers are Biocon Ltd (8.82%), Dishman Pharma (8.16%), Wockhardt Ltd (7.82%), Glenmark Pharma (6.54%) and Aurobindo Pharma (5.04%).

The BSE Realty index increased by (2.07%) or 66.06 points at 3,251.03 on hopes that stability at the Centre will attract more money from foreign investors into the sector. Indiabull Real (6.87%), Akruti City (5.00%), Penland Ltd (3.54%), Ansal Infra (2.84%) and Omaxe Ltd (2.66%) ended in positive territory.

The BSE Auto index gained (1.64%) or 76.40 points to close at 4,721.72 on expectations that sales will rise if economy improves. Gainers are MRF Ltd (4.70%), Tata Motors (4.20%), Apollo Tyre (3.28%), Ashok Leyland (3.25%) and Gammon Indi (3.07%).

The BSE Teck index advanced by (1.64%) or 42.05 points at 2,613.40. Scrips that gained are Tata Teleser (10.04%), Aptech Ltd (8.12%), Deccan Chr (7.83%), NIIT Ltd (7.77%), Tel Eighteen (6.78%) and Balaji Tele (6.60%).

Educomp Solutions surged 11.18%. The company today announced an agreement to set up a joint venture with Pearson, the International Education and Information Company offering skills training in India, one of the world''s fastest growing labour markets.

ABB Ltd gained 4.58%. The company has won orders wroth Rs 220 crore form Tata Projects Limited to provide power products and solutions for a super-critical coal-fired power plant under construction in the southern Indian state of Andhra Pradesh.

Religare Enterprises Ltd is ended up by 0.95%. The company has announced the following results for the quarter & year ended March 31, 2009. The Company has posted a net profit of Rs 58.160 million for the quarter ended March 31, 2009 as compared to Rs 110.689 million for the quarter ended March 31, 2008. Total Income has decreased from Rs 154.621 million for the quarter ended March 31, 2008 to Rs 151.218 million for the quarter ended March 31, 2009.

IRB Infrastructure Developers advanced 3.78% after it emerged as the lowest bidder for a national highway project in Rajasthan estimated at Rs. 1,500 crore.

Flawless Diamond (India) Ltd zoomed 4.93% after the company said its board will meet on 1 July 2009 to consider stock split.

Aurobindo Pharma Ltd gained 5.04% after the company secured nod from South Africa''s Medicines Control Council to manufacture and market five more products in that country.

Dr Reddy''s Laboratories Ltd gained 0.11% after the company launched Bispec, a drug that is useful for the management of over active bladder, in the domestic market.

Reliance Industries Ltd slipped 0.79% on reports that it will incur a loss if it sells natural gas from its D6 block in the Krishna-Godavari basin at $2.34 per million British thermal unit.