Post Session Commentary - June 8 2009

The domestic stock market tumbled during the trading session to close on a weak note backed by heavy profit booking across the selective indices like Realty, Metal, bankex and Consumer Durables index. Moreover, the lower index futures along with weak opening of the European markets also added to the negative sentiments of the investors that dragged down the market further. Though there was a gap up opening tracking the positive Asian markets but it soon turned volatile as profit booking takes a lead and kept on marching southward throughout the trading session.

The domestic key benchmark indices- BSE Sensex and NSE Nifty fell below the psychological 15,000 mark and 4,500 respectively. After a gap up opening, the market changed its gears and remained in the sellers’ radar for most of the session without any sign of recovery till the final bell. Moreover in the global arena, the US Markets closed mixed on Friday. The markets started with a subdued trading sentiment as the non-farm better than expected job data of the previous day faded. Traders however started picking up stocks higher after the news about the payrolls data that fell by 345,000 during May. The job losses numbers were below the 520,000 that were expected and far below than the 504,000 that were recorded during the month of April. On the other hand on a macro economic scenario the unemployment data has reached 26 years high of 9.4% up from 8.9%. From sectoral front, the investors off-loaded position across almost all the sectors led by Realty, Metal, Bankex and CD index while the IT index witnessed some buying support to close with gains of more than 1.5%.

Among the Sensex pack 26 stocks ended in negative territory while 4 in positive. The market breadth indicating the overall health of the market remained weak as 2,246 stocks closed in red while 582 stocks closed in green while 34 stocks remained unchanged in BSE.

The BSE Sensex closed lower by 437.63 points or 2.90% at 14,665.92 and NSE Nifty closed down by 157 points or 3.42% at 4,429.90. The BSE Mid Caps and Small Caps closed with losses of 294.93 and 374.77 points at 5,114.85 and 6,083.88. The BSE Sensex touched intraday high of 15,200.82 and intraday low of 14,604.23.

Losers from the BSE Sensex pack are JP Associates (10.40%) along with DLF (10.34%), Tata Steel (10.21%), Reliance Comm (8.68%), Reliance Infra (8.55%), SBIN (6.76%), Ranbaxy Labs (6.45%), Tata Motors (6.25%) and Hindalco Inds (6.14%).

Gainers from the BSE Sensex pack are Wipro Ltd (3.36%) followed by Infosys (2.52%), TCS (2.29%) and HUL (0.14%).

On the global markets front the Asian markets which opened before the Indian market, closed in red. Taiwan Weighted, Strait Times, Hang Seng, Jakarta Composite closed lower by 3.34%, 2.61%, 2.28% and 1.07% at 6,628.02, 2,333.70, 18,253.39 and 2,056.64.

European markets which opened after the Indian market are trading in negative. In Frankfurt the DAX index is trading lower by 1.54% at 4,998.68 and in London FTSE 100 is trading down by 1.14% at 4,387.98.

The BSE Realty index decreased (10.54%) or 424.82 points to close at 3,604.92. Main losers are Unitech (13.80%), Mahindra Life (13.61%), HDIL (11.67%), DLF (10.34%) and Indiabull Real (10.06%).

The BSE Metal index dropped (6.51%) or 761.92 points at 10,933.58. Scrips that mostly lost are JSW Steel (13.02%), Ispat Industries (11.71%), Welspun Gujurat Stahl (10.61%), Tata Steel (10.21%) and SAIL (9.07%).

The BSE Bankex index ended lower by (4.42%) or 362.52 points at 7,841.76. IDBI Bank (9.65%), Allahabad Bank (9.53%), Bank of India (8.33%), Yes Bank (8.05%) and PNB (7.14%) ended in negative territory.

The BSE Consumer Durables index fell (4.41%) or 133.51 points to close at 2,897.33. Losers are Gitanjali Gems (11.79%), Rajesh Export (11.24%), Videocon Industries (6.34%) and Titan Industries (2.50%).

The BSE Power slipped (3.46%) or 104.18 points at 2,904.46. Losers are GVK Power (7.74%), Suzlon Energy (6.72%), Power Grid (3.68%), Reliance Power (3.09%) and NTPC (2.48%).

The BSE Capital Goods index dropped (3.18%) or 411.01 points to close at 12,511.43. Losers are Reliance Industrial Infra (13.51%), Punj Lloyd (10.65%), Praj Industries (9.19%), Alstrom Project (8.03%), Everest Kanto (6.58%) and Bharat Electrical (6.50%).

The BSE Auto decreased (2.66%) or 131.21 points at 4,802.85. Losers are Ashok Leyland (9.64%), Tata Motors (6.25%), Bajaj Auto (5.54%), Cummins India (3.34%) and Exide Industries (3.40%).

Jaiprakash Associates Ltd plunged 10.40% to close at Rs207.25. The company has announced the following Audited results for the year ended March 31, 2009. The Company has posted a net profit of Rs 8970.10 million for the year ended March 31, 2009 where as the same was at Rs 6096.70 million for the year ended March 31, 2008. Total Income is Rs 61479.30 million for the year ended March 31, 2009 where as the same was at Rs 42612.00 million for the year ended March 31, 2008.

Indiabulls Real Estate Ltd tumbled 10.06% to Rs208.20. The company has announced the following Audited results for the year ended March 31, 2009. The Company has posted a net profit after extraordinary items of Rs 165.616 million for the year ended March 31, 2009 as compared to Rs 4677.091 million for the year ended March 31, 2008. Total Income has decreased from Rs 6488.779 million for the year ended March 31, 2008 to Rs 1397.630 million for the year ended March 31, 2009.

Rei Agro Ltd fell 7.30% to Rs90.85. The company has announced the following Audited results for the quarter & year ended March 31, 2009. The Company has posted a net profit of Rs 129.735 million for the quarter ended March 31, 2009 as compared to Rs 223.573 million for the quarter ended March 31, 2008. Total Income has increased from Rs 6314.109 million for the quarter ended March 31, 2008 to Rs 8574.322 million for the quarter ended March 31, 2009.

Indiabulls Financial Services Ltd declined 4.62% to rs184.65. The company has announced the following Audited results for the year ended March 31, 2009. The Company has posted a net profit of Rs 1901.721 million for the year ended March 31, 2009 as compared to Rs 3819.700 million for the year ended March 31, 2008. Total Income has increased from Rs 13278.456 million for the year ended March 31, 2008 to Rs 17835.086 million for the year ended March 31, 2009.

Divis Laboratories Ltd closed up by 0.26% at Rs1194.65. The Company has posted a net profit of Rs 4244.50 million for the year ended March 31, 2009 as compared to Rs 3535.60 million for the year ended March 31, 2008. Total Income has increased from Rs 10468.00 million for the year ended March 31, 2008 to Rs 12135.70 million for the year ended March 31, 2009. Moreover, the company has recommended issue of bonus shares in the ratio of one share for every share held, subject to approval of members.