Post Session Commentary - June 26 2009

Domestic market concluded its journey for the week on strong note on account of sustained buying over the ground. Favorable global cues, mainly firm Asian markets contributed to the sharp rally. Sentiments further got an advance as the European markets also opened in green. BSE Sensex extended its gains to around 3% and ended above 14,750 mark. Moreover, NSE Nifty also broadened its gains over 3% and closed above 4,350 level.

The market opened on pleasant note on the first day of July series tracking firm cues from the markets all over the world. Asian markets witnessed sharp rally today and the US Markets closed with handsome gains on Thursday led by some gains among the retailers and consumer discretionary stocks. The better than expected results from a $27 billion auction of 7-year Notes and some better than expected corporate earnings results led the markets to gain further momentum later in the session. The Indian benchmark indices continued to hold gains but were unable to expand gains till mid session. Further, stocks started extending gains and continued to move upward till end in line with other global counterparts. Market ended near days’ high as strong buying support picked up in the domestic bourses during second half of the trading. From the sectoral front, mainly Bank, Capital Goods, Consumer Durables, IT, Reality, Oil & Gas and Tech stocks contributed to the rally. BSE Mid Cap and Small Cap stocks also gained favor from the market. However, Pharma stocks witnessed most of selling from its baskets.

Among the Sensex pack 26 stocks ended in green territory and 4 in red. The market breadth indicating the overall health of the market remained extremely positive as 1689 stocks closed in green while 937 stocks closed in red and 107 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 419.02 points at 14,764.64 and NSE Nifty ended up by 133.65 points at 4,375.50. BSE Mid Caps and Small Caps closed with gains of 121 and 107.73 points at 5,170.90 and 5,800.75 respectively. The BSE Sensex touched intraday high of 14,781.94 and intraday low of 14,373.57.

Gainers from the BSE Sensex pack are ICICI Bank (7.96%), Sterlite Industries (6.11%), L&T Ltd (5.47%), TCS Ltd (4.35%), Infosys Tech (3.93%), RCom (3.93%), Reliance (3.53%), BHEL (3.20%), Maruti Suzuki (3.12%), SBI (2.62%), DLF Ltd (2.44%), Wipro Ltd (2.43%), HUL (2.35%), Hindalco (2.30%), HDFC Bank Ltd (2.21%), ACC Ltd (2.19%), Reliance Infra (2.00%), JP Associates (1.58%) and ONGC Ltd (1.53%).

Losers from the BSE Sensex pack are Sun Pharma (12.17%), Ranbaxy Lab (4.37%), Tata Steel (2.53%) and M&M Ltd (0.73%).

On the global markets front the Asian markets which opened before the Indian market, ended in green. Shanghai Composite, Hang Seng Nikkei 225, Straits Times index and Seoul Composite closed up by 3.17, 325.23, 81.31, 15.50 and 1.80 points at 2,928.21, 18,600.26, 9,877.39, 2.317.96 and 1,394.53 respectively.

European markets, which opened after the Indian market, are trading up. In Frankfurt the DAX index is trading higher by 50.95 points at 4,851.51 and in London FTSE 100 is trading up by 40.52 points at. 4,293.09.

The BSE Bank index surged (4.31%) or 343.75 points to close at 8,314.61 on firm American depository receipt (ADRs) and hopes of financial sector reforms in the Union Budget 2009-10. Main gainers are ICICI Bank (7.96%), Kotak Bank (5.30%), Axis Bank (5.29%), Indus Ind Bank (4.43%) and Punjab National Bank (4.11%).

The BSE Capital Goods index increased by (4.17%) or 524.55 points at 13,103.61. L&T Ltd (5.47%), Gammon Indi (4.97%), Jyoti Struct (4.97%), Suzlon Energy (4.67%) and Punj Lloyd (4.40%) ended in positive territory.

The BSE IT index advanced by (3.64%) or 118.51 points to close at 3,375.32. Gainers are Mphases Ltd (4.85%), TCS Ltd (4.35%), NIIT Ltd (3.99%), Infosys Tech (3.93%) and Patni Computer (3.73%).

The BSE Consumer Durable ended up by (3.17%) or 88.66 points at 2,881.48. Gainers are Videocon Ind (8.64%), Gitanjali GE (4.12%), Rajesh Export (2.94%), Titan Ind (1.79%) and Blue Star L (0.65%).

The BSE Realty index gained (2.99%) or 97.81 points at 3,366.10. Scrips that gained are Housing Dev (11.30%), Indiabull Real (5.04%), Akruti City (5.00%), Orbit Co (4.99%) and Anant Raj (4.98%).

The BSE Pharma stocks lost (1.49%) or 54.99 points to close at 3,637.68 led by a sharp fall in Sun Pharma. Major losers are Sun Pharma (12.17%), Lupin Ltd (5.52%), Sunpha Adv (5.52%), Ranbaxy Lab (4.37%) and Dishman Pharma (3.74%).

Karnataka Bank Ltd increased by 3.98%. The bank has cut rate of interest by 50 basis points on domestic term deposits on three maturity slabs. The reduced rates will be effective from July 1.

Bank of Baroda advanced by 0.57%. The bank is planning to make its presence in all districts of Karnataka by 2010-11. Now, it present in 22 districts of Karnataka. The bank will open seven more branches during the existing financial year.

Tata Power Company Ltd gained 0.80% after the company entered into a memorandum of understanding with group firm Tata Steel to set up a 525 megawatt power plant in Netherlands.

Cairn India Ltd gained 4.05% after crude oil prices surged over 2% on the New York Mercantile Exchange on Thursday, 25 June 2009.

Videocon Industries Ltd zoomed 8.64% on reports the company could join the race to acquire Great Offshore.

Sun Pharmaceuticals Industries Ltd plunged 12.17% after reports the US drug regulator has seized generic drugs made by Caraco Pharmaceutical Laboratories, a US subsidiary of Sun Pharma.

Tata Steel Ltd ended lower by 2.53%. The company has announced the Audited results for the year ended March 31, 2009. The Company has posted a net profit of Rs 52017.40 million for the year ended March 31, 2009 as compared to Rs 46870.30 million for the year ended March 31, 2008. Total Income has increased from Rs 199338.30 million for the year ended March 31, 2008 to Rs 246240.40 million for the year ended March 31, 2009.

State Bank of Mysore ended down by 0.84%. The Bank has revised the rates with effect from June 29, 2009. Bench-Mark Prime Lending Rate: Reduction by 50 basis points and the deposit Rates Reduction by 25 basis points.