Post Session Commentary - June 3 2009

The domestic stock market closed almost on a flat note after a high volatile session throughout the trading session. Tracking the upbeat global market, the domestic benchmark BSE Sensex opened with decent gains and marched forward to cross the psychological 15,000 mark on sustained buying support. But the domestic market turned volatile in the afternoon trade and fell into the negative territory due to weak opening of the European markets and lower US index futures. The profit booking takes a lead during the trading session on selective indices. But the market made a smart turnaround in the final hours of the session to pare moist of the losses on heavy buying across the FMCG and Consumer Durables stocks.

The domestic key benchmark indices opened on a upbeat note tracking the favoring global markets a recovery in the India’s infrastructure sector output that 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. However, the market did not able to retain the momentum at the higher level and tumbled due to profit booking across selective indices. Moreover, in the global arena, the US Markets closed in green for the fourth consecutive session. The pending new home sales data for April showed a phenomenal surprise growth of 6.7%, which is the third straight increase. The US auto sales for May fell a less than expected 24%. The bankrupt GM said that its May sales have declined by 30% and simultaneously Honda and Toyota Motors have said that their sales for the month of May has fallen by drastic 39% and 38% year-over-year respectively. In the financial space JPMorgan Chase pull the financial sector by 1.2% after it announced that it plans to repay the TARP fund by raising $5.0 billion in common equity. American express announced $500 million common stock offering while, Morgan Stanley announced to raise $2.2 billion. However, benchmark indices showed volatility during the session with BSE Sensex closed below 15,000 level and NSE Nifty above 4,525 mark. From sectoral front, investors on-loaded position across the sectors led by FMCG, Consumer Durables, Health Care and Metal while Bankex and IT index felt the hit as they remained on the sellers side.

Among the Sensex pack 18 stocks ended in positive territory and 12 in negative. The market breadth indicating the overall health of the market remained strong as 2,019 stocks closed in green while 790 stocks closed in negative and 49 stocks remained unchanged in BSE.

The BSE Sensex closed marginally lower by 4.01 points or 0.03% at 14,870.90 and NSE Nifty closed marginally up by 5.45 points or 0.12% at 4,530.70. BSE Mid Caps and Small Caps closed with gains of 78.86 and 131.94 points at 5,325.54 and 6,384.92. The BSE Sensex touched intraday high of 15,046.43 and intraday low of 14,733.59.

Gainers from the BSE Sensex pack are Hindalco Inds (6.09%) followed by ITC (5.76%), JP Associates (4.53%), Grasim Inds (4.38%), ACC (4.38%) and Reliance Comm (4.24%).

Losers from the BSE Sensex pack are Mahindra & Mahindra (3.85%), Infosys Tech (2.16%), SBI (1.90%), ICICI Bank (1.74%) and HDFC bank (1.71%).

On the global markets front the Asian markets which opened before the Indian market, closed mixed. Shanghai Composite, Nikkei, Strait Times closed up by 1.99%, 1.02%, 0.38% and 0.34% at 2,778.58, 18,576.47, 9,741.67 and 2,383.82. While Taiwan weighted closed lower by 0.80% at 6,893.14..

European markets which opened after the Indian market are trading in red. In Frankfurt the DAX index is trading lower by 0.59% at 5,113.76 and in London FTSE 100 is trading lower by 1.86% at 4,393.68.

The BSE FMCG index increased (4.19%) or 90.49 points to close at 2,248.26. Main gainers are United Brewaries (10.81%), Tata Tea (9.38%), ITC (5.76%) and United Spirits (5.16%).

The BSE Consumer Durables index surged (4.04%) or 117.37 points at 3,023.92. Scrips that mostly gained are Titan Industries (7.79%), Gitanjali Gems (4.70%), Blue Star (2.16%) and Videocon Industries (1.69%).

The BSE Health Care index also ended higher by (2.28%) or 78.41 points at 3,518.71. Biocon (11.30%), Glenmark Pharma (9.46%), Bilcare (5.24%), Cipla (4.16%) and Aurobindo Pharma (3.08%) ended in positive territory.

The BSE Metal index grew (1.79%) or 210.31 points to close at 11,951.20. Gainers are Welspun Gujarat Stahl (15.60%), Jindal Saw (8.625%), Hindalco Industries (6.09%), Jai Corp (5%) and Gujarat NRE (4.95%).

The BSE Capital Goods improved (0.98%) or 117.65 points at 12,159.43. Gainers are Lakshmi Machine Work (4.64%), Jyothi Structure (3.90%), Bharat Bijli (3.37%), Alstrom Project (3.34%) and Gammon India (3.51%).

The BSE Power index gained (0.94%) or 27.48 points to close at 2,935.60. Gainers are Suzlon Energy (14.02%), GVK Power (6.24%), Power Grid (5.41%), Reliance Power (1.25%) and Tata Power (0.34%).

The BSE Realty increased (0.79%) or 31.09 points at 3,986.01. Gainers are Sobha Developers (9.99%), Akruti City (4.66%), Omaxe Ltd. (4.28%), Mahindra Life (3.28%), Orbit Co (3.24%) and Unitech (3.10%).

Jaihind Projects Ltd surged 4.95% to close at Rs85.90. The company has informed that the Company in consortium has been awarded order of Rs 230.81 Crores from Gujarat State Petronet Ltd for E.P.C. Project for Darod - Jafrabad Gas Pipeline Project - Section A.

GMR Infra slipped 0.12% to Rs173. GMR Highways, the road construction division of GMR Infrastructure Ltd, is looking to make an investment of Rs 2,000 crore in the next two-three years to develop various road projects in the country.

Bharati Shipyard spurted 4.69% to Rs181.85. The company has fixed the open offer price at Rs 344 a share to purchase an additional stake of 20 per cent stake in Great Offshore.

Flawless Diamond India Ltd inched up 3.89% to Rs37.40. The company has informed that the Company has received order for its Designer Jewellery from (1) Tsutsumi Jewellery Co Ltd from Japan worth INR 240 Million and (2) Brilliant Gems Inc USA worth INR 96 Million. This order should be completed within 120 days. The impact of this order on the bottom line will be from the next Quarter.


ACC Ltd advanced 4.38% to Rs. 818.90 after cement dispatch surged 4.88% to 9.25 million tons during the period from January-May 2009 over the January-May 2008 period.

Essar Oil Ltd zoomed by 8.74% to Rs. 181.65 on reports company has decided to raise around $500 million by way of qualified institutional placement route as part of a $2 billion fund-raising program.