Pre Session Commentary - June 1 2009

Today domestic markets are likely to open positive as the US markets closed in green and the Asian markets have opened with phenomenal gains. The preliminary US GDP data has been revised moderately upward thus strengthening the morale of investors. The market sentiments across the Asian premises are looking very strong and therefore one could anticipate a strong buying trend during the day. However as the day would progress the profit booking pressures may chop some gains.

On Friday, the domestic markets closed positive on the back of encouraging GDP numbers and supportive cues from other markets. After a phenomenal gap up opening, the traders cheered the surge in other Asian markets which was further backed by the northward movement of European markets. Finally the better than expected GDP of 6.7% for the year FY09 pumped the sentiments of traders. The anticipations of deregulation in prices of Oil helped oil marketing companies gain momentum. Sectors like Realty, CG, CD and Auto inclined by 6.76%, 4.13%, 3.55% and 3.41% respectively. On the other hand, Mid cap and Small cap stocks also gained by 2.46% and 3.01% respectively. We expect the markets to be trading positive.

The BSE Sensex closed with a gain of 329.24 points at 14,625.25 and NSE Nifty inclined by 111.85 points at 4,448.95. BSE Mid Caps and Small Caps closed with gains of 121.18 points and 175.13 points at 5,056.74 and 5,986.82 respectively. The BSE Sensex touched intraday high of 14,727.28 and intraday low of 14,319.87.

On Friday, the US Markets closed in green. After a gyrating start the markets managed to close with remarkable gains. Financial stocks were the later movers as the sector started with a loss of 1% however towards the end it closed with a gain of 3%. Diversified metal and mining companies were in the limelight with phenomenal gains of 4.2% and 3.3%.The GDP for the first quarter recorded a drop of 5.7% better than the 6.1% decline that was report in the advance GDP reading. The US light crude oil for July delivery inclined by 1.7% to settle at $66.21 per barrel on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) closed high by 96.53 points at 8,500.33, the NASDAQ Composite (RIXF) index inclined by 22.54 points to close at 1,774.33 and the S&P 500 (SPX) gained 12.31 points to close at 919.14.

Indian ADRs ended Positive. In technology sector, Infosys and Wipro closed up by (3.54%) and (2.16%) respectively whereas Satyam declined by (2.75%). In banking sector ICICI Bank and HDFC Bank surged (1.30%) and (2.39%) respectively. In telecommunication sector, MTNL gained (0.47%) whereas Tata Communication plunged by (9.61). However, Sterlite Industries galloped by (4.52%).

Today major stock markets in Asia are trading positive. Hang Seng is up by 430.83 points at 18,601.83. Shanghai Composite is also up by 74.959 points at 2,707.889. However Japan''s Nikkei is trading up by 117.91 points at 9,640.41. Strait Times is also up by 43.46 points at 2,372.54. Seoul Composite is also up by 9.75 points at 1,405.64.

The FIIs on Friday stood as net buyers in equity and sellers in debt. Gross equity purchased stood at Rs 5,870.90 Crore and gross debt purchased stood at Rs 103.40 Crore, while the gross equity sold stood at Rs 3,741.80 Crore and gross debt sold stood at Rs. 2,572.50 Crore. Therefore, the net investment of equity and debt reported were Rs 2,129.10 Crore and Rs (2,469.10) Crore respectively.

On Friday, the partially convertible rupee closed at 47.11/12 per dollar, 1.04% stronger than it previous close at 47.60/62. The rupee gained strength on the phenomenal consecutive surge in local stock markets.

On BSE, total number of shares traded were 68.89 Crore and total turnover stood at Rs 8,444.33 Crore. On NSE, total number of shares traded was 149.58 Crore and total turnover was Rs 27,356.32 Crore.

Top traded volumes on NSE Nifty – Unitech with 126063917 shares, Suzlon Energy with 67799714 shares, Idea Cellular with 42030544 shares, DLF with 26527793 shares, followed by Reliance Petro with 25852072 shares.

On NSE Future and Options, total number of contracts traded in index futures was 598920 with a total turnover of Rs 12,731.64 Crore. Along with this total number of contracts traded in stock futures were 477694 with a total turnover of Rs 26,652.95 Crore. Total numbers of contracts for index options were 984168 with a total turnover of Rs 22,029.79 Crore and total numbers of contracts for stock options were 29901 and notional turnover was Rs 1,646.21 Crore.

Today, Nifty would have a support at 4,498 and resistance at 4,569 and BSE Sensex has support at 14,741 and resistance at 14,915.