Post Session Commentary - July 13 2009

The Indian market closed the session on negative note mirroring unfavorable cues from the Asian markets along with fall in US index futures. However, market pared most of its losses during final trading hour on selective buying across key indices. Meanwhile, Benchmark indices plunged on the back of selling pressure witnessed during the trading amid concerns about the global economy. Distress regarding insufficient monsoon rain also weighed on sentiments. However, market was still below its last closing and continued to reel under selling pressure. BSE Sensex ended around 13,400 level and NSE Nifty closed below 4,000 mark.

The market opened with losses along with negative opening of other Asian stocks. However, the US stocks markets closed mixed on Friday as investors remained worried about the overall health of the economy and ahead of the quarterly earnings announcement. Meanwhile, the investors got hurt after a report showed that US consumer sentiment fell to a four month low in early July. Further, Indian stocks continued to trade on negative backed by fears for the health of global economy along with lack of any positive news from the domestic arena. In addition, there was another distress in the market regarding rise in government borrowing that may increase the interest rates and will leave less money for the private sector to rise from the market. Finance Minister has projected government borrowings of Rs 4.51 lakh crore for the present fiscal. Finally, market ended with losses despite witnessing slight recovery along with recovery in European stocks. From the sectoral front, most of the indices closed in red. Besides, Consumer Durables, Metal, Realty, Auto, Power and Capital Goods stocks were unable to gain favour from the market. BSE Mid Caps and Small Caps stocks also witnessed selling pressure. However, IT and Teck stocks remained in limelight as observed most of the buying from these baskets.

Among the Sensex pack 19 stocks ended in red territory and 11 in green. The market breadth indicating the overall health of the market remained extremely weak as 2009 stocks closed in red while 567 stocks closed in green and 56 stocks remained unchanged in BSE.

The BSE Sensex closed lower by 103.90 points or (0.77%) at 13,400.32 and NSE Nifty ended down by 29.85 points or (0.75%) at 3,974.05. BSE Mid Caps and Small Caps closed losses of 133.98 and 176.98 points at 4,584.61 and 5,057.70 respectively. The BSE Sensex touched intraday high of 13,461.68 and intraday low of 13,219.99.

Losers from the BSE Sensex pack are Reliance Infra (6.10%), JP Associates (4.83%), Tata Steel (4.10%), Maruti Suzuki (3.48%), Herohonda Motors (3.43%), Hindalco (3.35%), DLF Ltd (3.34%), Tata Motors (2.91%), M&M Ltd (2.54%), L&T Ltd (2.13%) and RCom (2.11%).

Gainers from the BSE Sensex pack are Sun Pharma (2.57%), Infosys Tech (2.40%), Grasim Industries (2.06%), Sterlite Industries (1.48%), Wipro Ltd (1.30%) and TCS Ltd (0.95%).

On the global markets front the Asian markets that opened before the Indian market, ended lower. Shanghai Composite, Hang Seng, Nikkei 225 index, Straits Times and Seoul Composite ended down by 33.38, 453.79, 236.95, 41.34 and 50.50points at 3,080.56, 17,254.63, 9,050.33, 2,266.64 and 1,378.12 respectively.

European markets, which opened after the Indian market, are trading in green. In Frankfurt the DAX index is trading up by 10.17 points at 4,586.48 and in London FTSE 100 is trading higher by 9.17 points at 4,136.34.

The BSE Consumer Durable stocks ended lower by (5.68%) or 157.33 points to close at 2,611.47. Major losers are Rajesh Export (8.71%), Blue Star L (7.96%), Videocon Ind (5.95%) and Titan Ind (4.48%).

The BSE Metal down by (3.77%) or 381.76 points at 9,735.68. Losers are Steel Authority (8.34%), Jai Corp Ltd (7.81%), Jindal Steel (6.78%), Gujarat NRE C (6.52%) and JSW Steel (6.39%).

The BSE Realty index dropped by (3.77%) 107.31 points at 2,738.35. Penland Ltd (9.63%), Mahindra Life (8.06%), Sobha Dev (7.64%), Pheonix Mill (7.61%) and Parsvnath (6.55%) ended in negative territory.

The BSE Auto index lost (2.57) or 117.15 points to close at 4,449.97. Losers are Amtek Auto (6.25%), Escorts Ltd (6.23%), MRF Ltd (4.93%), Gammon Indi (4.54%) and Maruti Suzuki (3.48%).

The BSE Power index plunged (2.39%) or 62.33 points at 2,541.03. Scrips that lost are Siemens Ltd (6.83%), Lanco Infra (6.32%), Reliance Infra (6.10%), Reliance Power (6.01%) and ABB Ltd (5.20%).

The BSE IT index increased by (1.76%) or 56.16 points to close at 3,252.25. Main gainers are HCL Tech (2.82%), Infosys Tech (2.40%), Financ Tech (1.89%), Patni Computer (1.81%) and Wipro Ltd (1.30%).

Maytas Infra Limited lost 4.95%. The Government appointed Dr K Ramalingam as Chairman and Mr. OP Vaish, Mr. Ved Jain and Mr. Anil K Aga rival, as Directors on the Board of the company who have over the last 3 months through intense review, interactions and consultation with various stakeholders managed to put crisis hit Maytas Infra on the road to stability.

Omaxe Ltd ended lower by 5.27%. The company has announced that M/s. Pancham Realcon Pvt. Ltd, a subsidiary of the Company has entered into Memorandum of Understanding on July 09, 2009 with Allahabad Development Authority for the development of Hi-Tech Township in Allahabad on a proposed area of 1535.12 Acres.

Gujarat Foils Limited ended down by 4.95%. The company has entered in Retail and FMCG Sector and has launched India''s first embossed Aluminum Consumer House Foil to be used for food packing under the brand name "NUTRIWRAP" and also kitchen containers like Casserole, Oven Cups under the brand name "NUTRIPACK".

Sterlite Technologies Limited lost 4.37%, The company has won a contract from BSNL, valued at Rs 372 Crores (US$ 77 Million}, for enabling a Fiber-to-the-Home (FTTH) Network tjased on Gigabit Passive Optical Network (GPON) technology. Sterlite was awarded a major share of the total outlay project, amongst competition from global players.

BGR Energy Systems Limited gained 5.19%. The company has secured a Turnkey EPC of Balance of Plant (BOP) contract from Maharashtra Power Generation Corporation (MAHAGENCO) for execution of the 2 X 500 MW Chandrapur Super Thermal Power Station (STPS) Expansion Project at Chandrapur, Maharashtra. The contract is valued at Rs. 1631.80 Crores and it will be completed over 33 months.

AXIS Bank Ltd advanced by 2.27%. The bank has posted a net profit of Rs 5620.40 million for the quarter ended June 30, 2009 as compared to Rs 3301.40 million for the quarter ended June 30, 2008. Total Income has increased from Rs 28912.40 million for the quarter ended June 30, 2008 to Rs 38641.30 million for the quarter ended June 30, 2009.