Pre Session Commentary - June 25 2009

Today domestic markets are likely to open positive as majority of Asian markets have opened with phenomenal gains. Despite the lethargic macro economic data of US, the Asian markets have opened with staggering gains. One may witness an early gain in the broader level followed by a northward movement further. The expiry of the F&O today will play a major role in deciding the trend of the day, as bulls have shown some reluctance for the rollovers.

On Wednesday, domestic markets closed in green after a gyrating trade throughout the day. After a weak opening the market traded volatile till the mid session. However the positive cues from the European markets helped the frontline stocks gain momentum ahead of the F&O expiry. Roll over by Bulls are still under apprehensions. The domestic fund houses have been keen on buying the FIIs selling. On stock specific movements, Jindal Stainless marked a phenomenal gain of 17% on the back of news that the company is planning to revamp its debt structure. The second stock in the lime light was Educomp which closed with a remarkable gain of 11% on new that Pearson is like to take some stake in one of its unit. Suzlon also gained momentum of 9% gain on reports that the company is selling its stake in one of its arms. Sectors like Power, CG, HC and Realty were the top gainers with 2.82%, 2.52%, 2.39% and 2.07% respectively. Mid cap and Small cap outperformed the benchmark indices with exemplary gains of 2.38% and 2.26% respectively. We expect the markets to be trading positive.

The BSE Sensex closed with a gain of 98.72 points at 14,422.73 and NSE Nifty ended with a gain of 45.95 points at 4,292.95. BSE Mid Caps and Small Caps closed with phenomenal gains of 117.50 points and 126.63 points at 5,059.84 and 5,719.03 respectively. The BSE Sensex touched intraday high of 14,479.82 and intraday low of 14,207.02.

On Wednesday, the US Markets closed mixed after a flurry of events. The much awaited FOMC policy statement had very little to surprise the investors. The statement said that the economic contraction is slowing and the economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period of time. The Fed also left the fed funds rate unchanged at 0.00% to 0.25% in line with the expected. On macro economic news the durable goods order for the month of May recorded better than expected growth of 1.8%. Further the May new home sales data recorded an annualized rate of 3,42,000 uints below the consensus 360,000 units. The month-over-month growth rate was down by 0.6% as against the expected 2.3% increase. The US light crude oil for August Futures delivery inclined by 2.6% at $69.25 per barrel on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) closed low by 23.05 points at 8,299.86 the NASDAQ Composite (RIXF) index inclined by 27.42 points at 1,792.34 and the S&P 500 (SPX) gained by 5.84 points at 900.94.

Today major stock markets in Asia are trading positive. Hang Seng is up by 267.20 points at 18,159.35. Shanghai Composite is up by 7.809 points at 2,930.108. Japan''s Nikkei is trading up by 151.55 points at 9,741.87. Strait Times is up by 15.85 points at 2,294.81. KLSE Composite is up by 13.37 points at 1,057.85.

Indian ADRs ended higher on Wednesday. In the IT space, Satyam Computers was up 4%, Wipro was up 3.64%, Infosys was up 1.89% and Patni Computers was up 0.68%. In the telecom space, Tata Communication was up 3.25% and MTNL was up 1.02%. In the banking space, HDFC Bank was up 3.25% and ICICI Bank was up 0.39%. In other sectors, Tata Motors was up 4.01%, Dr Reddy''s Labs was up 1.16%. However, Sterlite Industries, which was the sole loser among the ADRs, was down 1.69%.

The FIIs on Wednesday stood as net sellers in equity and net buyers in debt. The Gross equity purchased stood at Rs 2,047.30 Crore and gross debt purchased stood at Rs 235.80 Crore, while the gross equity sold stood at Rs 2,705.50 Crore and gross debt sold stood at Rs 4.00 Crore. Therefore, the net investment of equity and debt reported were Rs (658.20) Crore and Rs 231.80 Crore respectively.

On Wednesday, the partially convertible rupee closed flat at 48.55 per dollar as compared to its previous close at 48.56/57. The Indian rupee ended flat due to importers buying on dollars to settle there monthly bill and also banks covering their short positions.

On BSE, total number of shares traded were 47.74 Crore and total turnover stood at Rs 5,727.29 Crore. On NSE, total number of shares traded was 101.50 Crore and total turnover was Rs 17,946.49 Crore.

Top traded volumes on NSE Nifty – Unitech with total volume traded 76862747, followed by Suzlon Energy with 68606726, DLF with 13878187, SAIL with 12579650 and NTPC with 9872187.

On NSE Future and Options, total number of contracts traded in index futures was 831354 with a total turnover of Rs 17,416.64 Crore. Along with this total number of contracts traded in stock futures were 624472 with a total turnover of Rs 34,118.28 Crore. Total numbers of contracts for index options were 1349186 with a total turnover of Rs 29,111.88 Crore and total numbers of contracts for stock options were 39090 and notional turnover was Rs 2,293.24 Crore.

Today, Nifty would have a support at 4,348 and resistance at 4,428 and BSE Sensex has support at 14,510 and resistance at 14,694.