Post Session Commentary - July 1 2009

Sustained buying during second half of the trading propelled market to end the today’s session with decent gains. In addition, positive European markets along with firm US index futures also lifted the sentiments. Market touched the day’s high during afternoon trading on account of upward movement in front liners. Though, uncertainty also gripped the market ahead of upcoming Union Budget and building hopes on India Inc. BSE Sensex ended above 14,600 level and NSE Nifty below 4,300 mark.

The market opened slightly above the dotted line in line with other Asian stocks. However, the US stocks markets ended in negative on Tuesday backed by disappointing consumer confidence and expectations readings for the month of June. The Consumer Confidence for the month of June came in at 49.3 that missed expectation. Further, domestic market abruptly turned volatile and slipped into red zone during mid session. Investors opted to remain on sidelines on uncertainties regarding forthcoming Union Budged. The benchmark indices managed to gain ground further and rebounded sharply from the lower level on positive opening of European markets. Higher movement in the US index futures also lifted the sentiments. Market maintained its upbeat impetus till end and ended with gains on healthy buying interest observed over the ground. From the sectoral front, most of the indices ended in positive. Besides, strong buying was seen in Reality, Teck, Bank, Auto, Oil & Gas, PSU and Power stocks. Mid Cap and Small Cap stocks also gathered favor during the trading session. However, Consumer Durables stocks witnessed selling from its basket.

Among the Sensex pack 25 stocks ended in green territory and 5 in red. The market breadth indicating the overall health of the market remained negative as 1339 stocks closed in red while 1255 stocks closed in green and 79 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 151.63 points at 14,645.47 and NSE Nifty ended up by 49.80 points at 4,380.90. BSE Mid Caps closed with gains of 51.17 and 17.38 points at 5,127.51 and 5,757.42 respectively. The BSE Sensex touched intraday high of 14,727.49 and intraday low of 14,355.52.

Gainers from the BSE Sensex pack are DLF Ltd (4.76%), M&M Ltd (3.16%), Reliance Infra (2.99%), RCom (2.98%), Tata Motors (2.80%), Bharti Airtel (2.58%), Sun Pharma (2.51%), SBI (2.17%), HUL (2.10%), JP Associates (1.68%), Reliance (1.68%) and Infosys Tech (1.11%).

Losers from the BSE Sensex pack are Hindalco (3.53%), ONGC Ltd (1.36%), ACC Ltd (0.65%) and Tata Power (0.33%).

On the global markets front the Asian markets which opened before the Indian market, ended mixed. Hang Seng and Nikkei 225 closed down by 149.78 and 18.51 points at 18,378.73 and 9,939.93 respectively. However, Shanghai Composite, Straits Times index and Seoul Composite closed up by 48.79, 19.41 and 21.59 points at 3,008.15, 2.352.55 and 1,411.66 respectively.

European markets, which opened after the Indian market, are trading in green. In Frankfurt the DAX index is trading higher by 69.44 points at 4,878.08 and in London FTSE 100 is trading up by 60.32 points at. 4,309.53.

The BSE Realty index outperformed the benchmark indices and gained (4.25%) or 136.32 points at 3,343.51. Scrips that gained are Indialbull Real (7.28%), DLF Ltd (4.76%), Unitech Ltd (3.89%), Anant Raj (2.99%) and Sobha Dev (1.79%).

The BSE Teck index jumped (1.56%) or 40.65 points to close at 10,830.90. Main gainers are NIIT Ltd (14.65%), Aptech Ltd (10.38%), Mahanag Tele (4.62%), Idea Cell (4.14%) and Tata Teleserv (3.90%).

The BSE Bank stocks also gained (1.33%) or 109.57 points to close at 8,321.05. Major gainers are Axis Bank (4.31%), SBI (2.17%), Union Bank (2.13%), Kotak Bank (1.67%) and Allahabad Bank (1.48%).

The BSE Auto index advanced by (1.26%) or 57.33 points to close at 4,615.76. Gainers are Escorts Ltd (13.29%), MRF Ltd (8.69%), Apollo Tyre (4.22%), M&M Ltd (3.16%) and Ashok Leyland (3.02%).

The BSE Oil & Gas index increased by (1.12%) or 104.92 points at 9,495.07. BPCL (5.49%), HPCL (4.08%), Essar Oil Ltd (2.82%), IOC Ltd (1.72%) and Reliance (1.68%) ended in positive territory.

The BSE Consumer Durables index ended slightly down by (0.15%) or 4.53 points at 2,953.90. Losers are Gitanjali GE (4.80%), Rajesh Export (0.83%) and Videocon Ind (0.08%).

L&T Ltd gained 0.38%. The company has bagged major orders aggregating Rs, 651 crore for two hydrocarbon projects. L&T will build a green field refinery project at Bathinda for HPCL-Mittal Energy Limited (HMEL)j valued at Rs. 440 crore. In addition, L&T has received an order from Engineers India Limited for the supply and construction of a reactor and regenerator system valued at Rs. 211 crore for the Fluidized Catalytic Cracking (FCC) unit of Mangalore Refinery and Petrochemicals Limited (MRPL), Mangalore.

Nagarjuna Construction Company Limited ended up by 1.93%. The company has secured four new orders aggregating Rs. 797 crores.

Maruti Suzuki India Limited ended higher by 0.44%. The company sold a lotal of 75,109 vehicles in June 2009, this includes 13,336''units for export. This month''s export numbers are the highest ever-monthly export volume in the company''s history.

LIC Housing Finance has increased by 1.89%. The company slashed the lending rates by 50 basis points for its existing customers with effective from July 1 and this move will help to lower the monthly payments for its existing borrowers.

SBI ended up by 2.17%. The bank launched two special home loan schemes that assure low interest rates in the first three years. The bank has earlier announced a special rate of interest of 8% for loan upto Rs.30 lakh in the first year. Now the bank has fixed the interest rate for the second year and third year at 9% for loan upto Rs.30 lakh.

Suzlon Energy Ltd zoomed 2.99% to on bargain hunting after the stock fell 16% in the preceding two trading sessions.

Gujarat State Petronet Ltd gained 6.11% after net profit increased phenomenally 23.5% to Rs. 123.41 crore in the year ended March 2009 over the year ended March 2008.

Glodyne Technoserve Ltd surged 4.99% after the company’s board of directors recommended a liberal 1:1 bonus issue.