Post Session Commentary - June 9 2009

The domestic stock market rallied during the trading session to close with strong gains backed by the comments from Prime Minister Manmohan Singh that India can achieve a growth of 8% to 9% with a high savings rate. He also said that India will achieve an economic growth of at least 7% this fiscal and on the top of this promised more resources towards infrastructure and public services. This boosted the sentiments of the investors that led to heavy buying across the sectoral indices. According to Prime Minister, the fiscal deficit had risen sharply but even then India had enough resources to spend on flagship programmes thanks to the average annual growth of 8.6% achieved during the past five years. Moreover, he also said that his government was deeply committed to the agenda listed in the President''s address, adding flagship programmes will be further strengthened and public delivery system made more transparent.

Though the domestic key benchmark indices opened the session with a negative note and made a smart turnaround to recover from the initial fall and kept on marching forward till the final closing of the session. The BSE Sensex cross the psychological 15,000 mark while NSE Nifty crossed the 4,500 mark. Moreover in the global arena, the US Markets on Monday closed flat. Due to lack of any specific news, the markets pared off it previous week’s gains however due to late squeeze mainly the financials, the major indices closed flat. The financial stocks were in the limelight ahead of the Fed''s official announcement regarding which companies will be allowed to repay TARP funds. As per the recent data the Fed has allowed 10 banks to raise capital. In the domestic front, the investors on-loaded position across almost all the sectors led by Realty, IT, Metal, Consumer Durables and Capital Goods index.

Among the Sensex pack 28 stocks ended in positive territory while 2 closed in negative. The market breadth indicating the overall health of the market remained strong as 1494 stocks closed in green while 1,290 stocks closed in red while 42 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 461.08 points or 3.14% at 15,127 and NSE Nifty closed up by 121.05 points or 2.73% at 4,550.95. The BSE Mid Caps and Small Caps closed with gains of 160.87 and 101.73 points at 5,275.72 and 6,185.61. The BSE Sensex touched intraday high of 15,161.22 and intraday low of 14,526.69.

Gainers from the BSE Sensex pack are DLF (10.07%) followed by JP Associates (8.18%), Reliance Communication (7.37%), L&T (6.39%), Ranbaxy Labs (6.37%), M&M (6.34%), TCS (5.95%) and Tata Power (5.55%).

Losers from the BSE Sensex pack are Grasim Industries (0.64%) and NTPC (0.61%).

On the global markets front the Asian markets which opened before the Indian market, closed mixed. Jakarta Composite, Shanghai Composite and Strait Times closed up by 1.78%, 0.71% and 0.69% at 2,093.29, 2,787.88 and 2,349.87 respectively. While Taiwan Hang Seng and Nikkei closed lower by 3.22%, 1.07% and 0.80% at 6,414.39, 18,058.49 and 9,786.82.

European markets which opened after the Indian market are trading in negative. In Frankfurt the DAX index is trading lower by 0.36% at 4,986.82 and in London FTSE 100 is trading down by 0.25% at 4,394.16.

The BSE Realty index surged (6.25%) or 225.40 points to close at 3,830.32. Main gainers are DLF (10.07%), Mahindra Life (9.96%), Omaxe Ltd. (9.06%), HDIL (5.62%) and Unitech (5.10%).

The BSE IT index increased (4.79%) or 153.45 points at 3,357.18. Scrips that mostly gained are Tech Mahindra (25.46%), Patni Computer (16.29%), HCL Technologies (12.71%), Rolta Ind (12.09%) and Oracle Fin (10.25%).

The BSE Metal index ended higher by (4.28%) or 467.82 points at 11,401.40. Sesa Goa (14.81%), Ispat Industries (10.53%), Welspun Gujarat Stahl (9.15%), JSW Steel (9.10%) and Tata Steel (5.28%) ended in positive territory.

The BSE Consumer Durables index grew (4.18%) or 121.09 points to close at 3,018.42. Gainers are Titan Industries (5.54%), Rajesh Export (5.04%), Gitanjali Gems (4.72%) and Videocon Industries (3.92%).

The BSE Capital Goods surged (4.04%) or 505.41 points at 13,016.84. Gainers are Reliance Industrial Infra (11.73%), AIA Engineering (6.82%), Punj Lloyd (6.80%), L&T (6.39%) and Praj Industries (5.72%).

The BSE FMCG index increased (2.87%) or 62.08 points to close at 2,224.93. Gainers are Tata Tea (5.53%), Colgate Palmolive (4.80%), Marico Ltd. (4.38%), ITC Ltd. (3.62%), Nestle Ltd. (2.30%) and HUL (2.03%).

The BSE Oil and Gas improved (2.61%) or 262.46 points at 10,326.01. Gainers are Essar Oil (4.86%), RNRL (3.83%), Reliance Industries (3.79%), RPL (2.75%) and ONGC (1.50%).

Satyam Computer Services on Tuesday reported a standalone net profit of Rs 52 crore for the month ended February 2009 as against a net profit of Rs four crore in January this year, Satyam said in a regulatory filing to the stock exchanges. Moreover, the total income in February stood at Rs 637 crore as against Rs 647 crore in January. The company during October-December quarter posted a net profit of Rs 181 crore. The total income during the quarter ended December last year stood at Rs 2,206 crore.
Moreover, the company has lost around 9,447 employees from January 2008 to February 2009. Nearly 1,600 people quit the firm in February 2009.