Post Session Commentary - July 14 2009

Indian market rebounded from yesterdays’ losses to end the day with strong gain of more than 3% mirroring favorable cues from global markets. Forecast of rise in rains in upcoming days also contributed to the positive attitude. Though, market came little low from the higher level during afternoon trade but managed to move upward further along with firm European markets. Benchmark indices recuperated strength today also on positive US index futures. Bulls were on command today as BSE Sensex ended above 13,800 level and NSE Nifty closed above 4,100 mark.

The market witnessed heavy gap up opening backed by positive cues from the markets all over the world. Asian stocks were firm today and the US markets made a sharp rebound on Monday and closed higher led by financials after an up gradation of Goldman Sachs by Wall Street analyst Meredith Whitney, a day ahead of its quarterly earnings report. Further, Indian benchmark indices were continual in making decent gains on significant buying over the ground. The impetus was boosted by the forecast of strong rains though stocks came off from higher level during afternoon. Northward movement across the sectors contributed to the strong rally and finally market closed sharply higher from previous closing. From the sectoral front, investors on-loaded position across the sectors. Among those, most of the buying was seen in Realty, Metal, Consumer Durables, Power, Capital Goods, Bank, PSU and Oil & Gas stocks. BSE Mid Caps and Small Caps stocks were also in favour during the trading session as closed with gain of more than 4% each.

Among the Sensex pack 29 stocks ended in green territory and 1 in red. The market breadth indicating the overall health of the market remained positive as 1956 stocks closed in green while 602 stocks closed in red and 81 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 453.38 points or (3.38%) at 13,853.70 and NSE Nifty ended up by 137.35 points or (3.46%) at 4,111.40. BSE Mid Caps and Small Caps closed gains of 195.67 and 225.32 points at 4,780.28 and 5,283.02 respectively. The BSE Sensex touched intraday high of 13,903.48 and intraday low of 13,549.42.

Gainers from the BSE Sensex pack are DLF Ltd (11.44%), Reliance Infra (9.02%), JP Associates (7.93%), ICICI Bank (7.60%), HDFC (7.28%), Tata Steel (5.69%), RCom (5.04%), Grasim Industries (5.03%), Tata Motors (4.41%), ACC Ltd (4.38%), BHEL (4.34%), Hindalco (4.18%), Reliance (3.62%), Sterlite Industries (3.37%) and L&T Ltd (3.18%).

Only loser from the BSE Sensex pack is HDFC Bank (1.03%).

On the global markets front the Asian markets that opened before the Indian market, ended higher after South Korean steel giant Posco raised its production target and Singapore raised its estimate for economic growth. Shanghai Composite, Hang Seng, Nikkei 225 index, Straits Times and Seoul Composite ended up by 64.60, 631.10, 211.48, 43.91 and 7.44 points at 3,145.16, 17,885.73, 9,261.81, 2,310.55 and 1,385.56 respectively.

European markets, which opened after the Indian market, are trading in green following an overnight rally in Wall Street. In Frankfurt the DAX index is trading up by 40.60 points at 4,762.94 and in London FTSE 100 is trading higher by 20.86 points at 4,230.99.

The BSE Realty index outperformed the benchmark indices and ended up by (9.38%) 256.81 points at 2,995.16 on expectation of rising demand due to emphasis on infrastructure development in the Union Budget 2009-10. Ackruti (12.36%), DLF Ltd (11.44%), Ansla Infra (9.56%), Parsvnath (9.42%) and Housing Development (9.41%) ended in positive territory.

The BSE Metal closed up by (5.53%) or 538.07 points at 10,273.75 after Shanghai copper rose 1.4% yesterday. Gainers are JSW Steel (9.47%), Jai Corp Ltd (8.67%), Sesa Goa Ltd (8.36%), Ispat Industries (7.23%) and Jindal Saw (5.90%).

The BSE Consumer Durable stocks ended higher by (5.12%) or 133.77 points to close at 2,745.24. Major gainers are Videocon Ind (7.10%), Rajesh Export Blue Star L (7.08%), Titan Ind (4.72%), Gitanjali Ge (4.48%) and Blue Star L (3.32%).

The BSE Power index gained (4.60%) or 116.95 points at 2,657.98 on tracking bargain after recent fall. Gainers are Suzlon Energy (11.84%), Reliance Infra (9.02%), GVK Power (8.21%), Lanco Infra (7.29%) and Reliance Power (7.06%).

The BSE Capital Goods index advanced by (4.11%) or 453.13 points at 11,474.77. Scrips that went up are Walchand Industries (19.81%), Suzlon Energy (11.84%), Punj Lloyd (11.01%), Reliance Industrial Infra (7.18%) and BEML Ltd (7.12%).

The BSE Bank index increased by (3.69%) or 269.92 points to close at 7,580.18. Main gainers are IDBI Bank (8.11%), Indus Ind Bank (8.09%), ICICI Bank (7.60%), Yes Bank (6.60%) and Bank of India (5.40%).

Indusind Bank gained 8.09%. The bank has entered into a strategic tie up with Maruti Suzuki India Limited for financing Maruti vehicles on an all India basis.

IBN18 Broadcast Limited advanced by 6.47%. The company is now a 50% shareholder in Viacom18 Media Private Limited following the acquisition of Television Eighteen India Limited''s15.47% remaining stake in ViacomlS.

ABB Ltd ended up by 3.72%. The company has won orders worth Rs. 1410 million from Maharashtra State Electricity Transmission Company Limited (MSETCL) for substations to help improve the efficiency and reliability of the state''s network.

Oracle Financial Services Software Ltd gained 3.87% after the company won an overseas contract for its software product.

Bajaj Auto Ltd advanced by 4.47% on reports the company is likely to raise its stake in Austria''s power bike company KTM Power Sport AG to leverage on the foreign company''s superior expertise in technology and brand name.

Tata Communications increased by 0.63%. The company has won a deal from Sistema Shyam TeleServices (SSTL), a pan India mobile license holder, to deploy its on-demand hosted contact center (instaCC) services for all SSTL circles across the country, allowing the telco to move from capex to opex model.

HDFC Bank lost by 1.03%. The bank’s first quarter net profit rose 31% from a year earlier, led by a rise in other income. The Net profit for the April-June quarter rose to Rs.606 crore from Rs.464 crore a year earlier. The bank reported other income of Rs.1,044 crore an increase of 76% as against Rs.593 crore in the same period previous year.