Post Session Commentary - June 5 2009

The domestic stock market managed to close the extreme volatile session on a positive note. The domestic market came off sharply form the day’s high in the final hour of the session to pare most of its gains due to profit booking across selective indices. Though there was a gap up opening tracking the positive Asian markets but it soon turned volatile as profit booking takes a lead. The investors took calculated steps during the trading session as the investors are eyeing the Union budget, which is scheduled to be announced on July 3, 2009 by Pranab Mukherjee.

The domestic key benchmark indices opened on a positive note tracking the positive global markets but remained rangebound for most part of the session. However, the market showed sharp upward trend after the mid session but did not able to sustain at that level and fell to pare most of its gains. Moreover, in the global arena, the Bank of England kept the interest rate unchanged. Also no fresh measures have been announced by the Bank to stimulate the economy. The Bank, in the last month, had announced that it would be injecting an extra pound 50bn into the economy as part of its quantitative easing policy. Policymakers are attempting to find out how the economy is faring amid tentative signs of a recovery. According to a closely-watched survey on the service sector, the recovery may be coming faster than expected. Moreover, On Thursday, the US Markets closed in positive territory. On macro economic scenario, retailers reported unimpressive comparable store sales for May. The sector had lost 3.0% at their session low however later managed to close at a loss of 1.2%. On the other hand, the numbers of initial jobless claims are slowing as initial weekly claims for the week ending May 30 totaled 621,000, in-line with the consensus estimate. Continuing jobless claims cooled off from record highs by coming in at 6.74 million, which is below what was expected. However, the BSE Sensex after witnessing a lot of volatility during the session closed above 15,100 mark and NSE Nifty above 4,580 mark. From sectoral front, investors on-loaded position across the sectors led by Capital Goods, IT and Auto index while the investors offload across FMCG and Realty index.

Among the Sensex pack 20 stocks ended in positive territory and 10 in negative. The market breadth indicating the overall health of the market remained strong as 1,519 stocks closed in green while 1,318 stocks closed in negative and 54 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 94.87 points or 0.63% at 15,103.55 and NSE Nifty closed up by 14.25 points or 0.31% at 4,586.90. The BSE Mid Caps and Small Caps closed with losses of 36.30 and 66.54 points at 5,409.78 and 6,458.65. The BSE Sensex touched intraday high of 15,257.30 and intraday low of 14,993.60.

Gainers from the BSE Sensex pack are Grasim Inds (6.06%) followed by Tata Motors (5.31%), Bhel (5.30%), L&T (4.35%), Infosys (3.91%) and Tata Power (3.82%).

Losers from the BSE Sensex pack are ITC (5.46%), Reliance Infra (3.66%), SBI (3.09%), DLF (1.95%) and Reliance Inds (1.94%).

On the global markets front the Asian markets which opened before the Indian market, closed mixed. Strait Times, Seoul Composite, Nikkei and Hang Seng closed up by 1.42%, 1.20%, 1.02% and 0.96% at 2,396.35, 1,394.71, 9,768.01 and 18,679.53. While Sanghai Composite and Taiwan Weighted closed lower by 0.48% and 0.28% at 2,753.981 and 6,767.10.

European markets which opened after the Indian market are trading in green. In Frankfurt the DAX index is trading higher by 0.40% at 5,085.23 and in London FTSE 100 is trading up by 1.33% at 4,445.47.

The BSE Consumer Durables index increased (0.78%) or 23.55 points to close at 3,030.84. Main gainers are Rajesh Export (3.73%), Titan Industries (2.28%) and Gitanjali Gems (0.32%).

The BSE Bankex index increased (0.49%) or 39.63 points at 8,204.48. Scrips that mostly gained are Bank of Baroda (3.49%), HDFC Bank (2.15%), ICICI Bank (2.30%), Allahabad Bank (1.93%) and Axis Bank (0.36%).

The BSE Metal index ended marginally lower by (0.03%) or 4.03 points at 11,695.50. Welspun Gujurat Sthal (4.09%), Ispat Industries (3.93%), Sesa Goa (3.74%), NMDC (3.49% and Jindal Saw (2.02%) ended in negative territory.

The BSE IT index grew (2.61%) or 80.35 points to close at 3,154.35. Gainers are Infosys Technologies (3.91%), Financial Technologies (1.94%), TCS (1.93%), HCL Technologies (0.29%) and Oracle Fin (0.06%).

The BSE Power improved (0.18%) or 5.42 points at 3,008.64. Losers are GVK Power (4.52%), Suzlon Energy (4.31%), Reliance Power (3.28%), Torent Power (1.37%) and NTPC (1.17%). However Tata Power ended higher by (3.82%).

The BSE Realty index dropped (2.12%) or 87.25 points to close at 4,029.74. Losers are Phoenix Mill (8.91%), HDIL (5.67%), India Bull Real (4.75%), Anant Raj Industries (4.09%) and Penland (2.30%).

The BSE Health Care increased (0.77%) or 27.87 points at 3,638.11. Gainers are Dr. Reddy (6.22%), Aurobindo Pharma (4%), Biocon (2.98%), Disman Pharma (2.94%), and Sun Pharmaceutical (2.70%).

Indian Overseas Bank (IOB) dropped 0.65% to Rs91.75. The company has informed that on June 04, 2009, the Bank has entered into a Joint Venture Agreement with Bank of Baroda and Andhra Bank for setting up a banking subsidiary in Malaysia in the name of BIA Bank (Malaysia) Bhd. The shareholding pattern in the subsidiary is Bank of Baroda - 40%, Indian Overseas Bank - 35% and Andhra Bank - 25%.

GMR Infrastructure Ltd fell 3.63% to Rs. 171.05. The net profit of the company rose 55.79% to Rs 97.67 crore on a 47.07% increase in total income to Rs 165.02 crore in the year ended March 2009 over the year ended March 2008.

JSW Steel Limited plunged 0.37% to Rs 584.75. The company reported a growth of 33% in Crude Steel production for May 2009 compared to that of corresponding month in the last fiscal year. The substantial growth in production is mainly attributable to the production from 2.8 MTPA expansion project at Vijayanagar works.

Jain Irrigation tumbled 0.12% to Rs650.35. The company has bagged the TN-IAMWARM order of World Bank, which is valued at Rs. 778 mn covering 22,345 Ha to be executed during this year.