Pre Session Commentary - June 29 2009

Today domestic markets are likely to open positive as majority of Asian markets have opened in green on the back of better than expected US personal income data for May which has recorded a 1.4% increase. In the domestic arena the SEBI is contemplating to increase the markets’ trading hours (cash market) from the current timings to 9 am – 5pm. Today one could witness some profit booking pressures in the domestic arena due to lack of specific news.

On Friday, domestic markets closed with phenomenal gains. The sentiments across Asia helped push the domestic sentiments to high levels. The surge in the US markets last night has pumped the buying sentiments across Asian markets. In the domestic arena short covering boosted the early trading hours and later some fresh long positions thrust the markets at broader level. Sectors like Bankex, CG, IT and CD were the forerunners with phenomenal gains of 4.31%, 4.17%, 3.64% and 3.17% respectively. On the other hand Mid cap and Small also recorded moderate gains of 2.40% and 1.89% respectively. We expect the markets to be trading range bound.

The BSE Sensex closed with a gain of 419.02 points at 14,764.64 and NSE Nifty ended with a gain of 133.65 points at 4,375.50. BSE Mid Caps and Small Caps closed with gains of 121 points and 107.73 points at 5,170.90 and 5,800.75 respectively. The BSE Sensex touched intraday high of 14,781.91 and intraday low of 14,373.57.

On Friday, the US Markets closed mixed. The session started with a choppy mood due to lack of news and many stocks were struggling to find a direction throughout the session. Financial stocks were in the shine on the back of surge in investment banking, brokerage and financial services stocks that closed with gains of 1.7% and 1.8% respectively. On a macro economic perspective, personal income for the month of May made a surprisingly strong 1.4% increase, however spending increased by 0.3% inline with expectations. Personal consumption expenditures increased 0.1% month-over-month, as expected. The US light crude oil for August Futures delivery declined by 1.5% at $69.17 per barrel on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) fell by 34.01 points at 8,438.39 the NASDAQ Composite (RIXF) index inclined by 8.68 points at 1,838.22 and the S&P 500 (SPX) fell by 1.36 points at 918.90.

Today major stock markets in Asia are trading positive. Hang Seng is up by 41.06 points at 18,641.32. Shanghai Composite is up by 17.834 points at 2,946.045. Japan''s Nikkei is trading up by 31.60 points at 9,908.99. Strait Times is flat at 2,317.86. KLSE Composite is up by 1.66 points at 1,075.77.

Indian ADRs ended higher on Friday. In the banking space, ICICI Bank was up 4.46% and HDFC Bank was up 5.93%. In the IT space, Patni Computers was down 2.20%, Wipro was up 3.75%, Infosys was up 2.67% while Satyam Computers was down 3.59%. In the telecom space, MTNL was flat while Tata Communication was up 5.12%. In other sectors, Dr Reddy''s Labs was up 0.12%, Sterlite Industries was up 5.48% and Tata Motors was up 0.31%.

The FIIs on Friday stood as net sellers in equity and net buyers in debt. The Gross equity purchased stood at Rs 4,111.50 Crore and gross debt purchased stood at Rs 1,528.40 Crore, while the gross equity sold stood at Rs 5,149.60 Crore and gross debt sold stood at Rs 99.70 Crore. Therefore, the net investment of equity and debt reported were Rs (1,038.10) Crore and Rs 1,428.70 Crore respectively.

On Friday, the partially convertible rupee closed its highest since May 19 at Rs 48.10/11, 1.03% stronger than its previous close at 48.60/61 per dollar. The Indian rupee gained phenomenally on the back of remarkable surge in local and Asian stock markets.

On BSE, total number of shares traded were 38.36 Crore and total turnover stood at Rs 5,541.06 Crore. On NSE, total number of shares traded was 89.61 Crore and total turnover was Rs 17,540.88 Crore.

Top traded volumes on NSE Nifty – Unitech with total volume traded 57187066, followed by Suzlon Energy with 52397590, Tata Steel with 17427623, DLF with 13689972 and Hindalco with 11675776 shares.

On NSE Future and Options, total number of contracts traded in index futures was 673970 with a total turnover of Rs 13,971.56 Crore. Along with this total number of contracts traded in stock futures were 597697 with a total turnover of Rs 17,377.01 Crore. Total numbers of contracts for index options were 698899 with a total turnover of Rs 15,522.55 Crore and total numbers of contracts for stock options were 35542 and notional turnover was Rs 1,200.50 Crore.

Today, Nifty would have a support at 4,310 and resistance at 4,421 and BSE Sensex has support at 14,595 and resistance at 14,925.