Post Session Commentary - July 16 2009

Indian market closed the today’s volatile session on flat note as investors booked profits following steep rise in previous two sessions. However, market exhibited positive attitude during early trading on overnight rise in US stocks. Further, concerns regarding the inflation data and the negative opening of European markets hit the sentiments. Meanwhile, inflation stood at (-) 1.21% for the week ended July 4 against (-) 1.55% during the previous week mainly due to higher prices of fuel items. BSE Sensex ended around 14,250 level and NSE Nifty closed below 4,250 mark.

Favorable cues from the markets all over the world led the gap up opening of the market. Asian stocks had opened with gains and the US markets closed higher on the back of the better than expected results reported by Intel and the Federal Reserve improved outlook for the economy. Moreover, the Consumer Price Index recorded sharper than expected growth of 0.7% during the month of June. Further, Indian benchmark indices were unable to hold the same impetus and started losing ground due to profit booking pressure at higher levels. Market exhibited instability during the trading and continued to swing between positive and negative terrain further. Weak European markets also fueled the downbeat response that directed the market to end the today’s journey on flat note. From the sectoral front, Capital Goods, Metal and Power stocks witnessed most of the selling from these baskets. However, Auto, Oil & Gas, Consumer Durables, Pharma and Teck stocks were able to gain favour from the market. BSE Mid Caps and Small Caps stocks also observed buying.

Among the Sensex pack 16 stocks ended in red territory and 14 in green. The market breadth indicating the overall health of the market remained positive as 1465 stocks closed in green while 1131 stocks closed in red and 93 stocks remained unchanged in BSE.

The BSE Sensex closed slightly lower by 2.99 points at 14,250.25 and NSE Nifty ended marginally down by 2.10 points at 4,231.40. BSE Mid Caps and Small Caps closed with gains of 11.78 and 21.76 points at 4,990.42 and 5,545.56 respectively. The BSE Sensex touched intraday high of 14,493.10 and intraday low of 14,169.58.

Losers from the BSE Sensex pack are Sterlite Industries (6.12%), Reliance Infra (3.97%), JP Associates (3.66%), Larsen & Toubro Ltd (3.65%), HDFC (2.07%), SBI (1.62%), DLF Ltd (1.46%), ACC Ltd (1.25%), ONGC Ltd (1.16%) and HUL (1.15%).

Gainers from the BSE Sensex pack are Maruti Suzuki (3.20%), Reliance (3.16%), Herohonda Motors (3.10%), RCome (3.09%), NTPC Ltd (2.96%), Tata Motors (2.62%), Tata Steel (1.29%) and BHEL (0.88%).

India''s inflation stood at (-) 1.21% for the week ended July 4 against (-) 1.55% in the previous week mainly due to higher prices of fuel items. The wholesale price index during the corresponding week a year ago was as high as 12.19%. The wholesale price index for all commodities for the week ended July, 4, 2009 rose by 0.7% to 236.4 from 234.7 for the previous week. The index for ''Food Articles'' group dipped by 0.2% to 253.6 from 254.0 for the previous week. The index for ''Non-Food Articles'' group rose by 0.3% to 237.7 from 237.0 for the previous week.

On the global markets front the Asian markets that opened before the Indian market, ended mostly up. Hang Seng, Nikkei 225 index, Straits Times and Seoul Composite ended up by 103.21, 74.91, 11.60 and 3511.36 points at 18,361.87, 9,344.16, 2,401.02 and 1,432.22 respectively. However, Shanghai Composite lost 4.81 points at 3,183.72.

European markets, which opened after the Indian market, are trading in red. In Frankfurt the DAX index is trading down by 0.87 points at 4,927.57 and in London FTSE 100 is trading lower by 11.49 points at 4,334.97.

The BSE Capital Goods index dropped by (1.65%) or 197.97 points at 11,818.18. Scrips that lost are Larsen & Toubro Ltd (3.65%), Bharat Bijli (3.27%), Elecon Eng C (2.66%), Punj Lloyd (1.53%) and Suzlon Energy (1.33%).

The BSE Metal closed down by (0.45%) or 48.77 points at 10,807.51. Losers are Ispat Industries (6.12%), Welspan Gujarat SR (3.71%), Ispat Industries (1.53%), Steel Authority (1.33%) and Jindal Saw (1.24%).

The BSE Power index lost (0.37%) or 10.17 points at 2,74.62. Losers are Lanco Infra (5.47%), Reliance Infra (3.97%), GMR Infra (3.22%), Torrent Power (2.28%) and Suzlon Energy (1.33%).

The BSE Auto stocks ended up by (1.95%) or 92.21 points to close at 4,821. Major gainers are Bajaj Auto (5.12%), Maruti Suzuki (3.20%), Herohonda Motors (3.10%), Bharat Forge (2.90%) and Tata Motors (2.62%).

The BSE Oil & Gas closed higher by (1.88%) or 168.9 points at 9,151.31. Gail India (3.69%), Reliance (3.16%), Reliance Pet (2.69%), Aban Offshore (2.59%) and RNRL (1.26%) ended in positive territory.

The BSE Consumer Durable index increased by (1.51%) or 42.68 points to close at 2,867.07. Main gainers are Rajesh Export (1.99%), Blue Star L (1.80%), Titan Ind (1.68%), Gitanjali GE (0.72%) and Videocon Ind (0.09%).

Tata Communications ended up by 0.58%. The company announced the opening of its Data Center in Kolkata, the first such third party tier ill data centre in eastern India, This latest addition to Tata Communications rollout of world class IDC infrastructure will enable customer access to reliable, secure data centers which are connected our Tier I India and Global network backbone.

Tata Steel Limited advanced by 1.29%. Tata Steel Global Minerals Holdings Pte Limited, an indirect wholly owned subsidiary of Tata Steel has today acquired additional shares of Riversdale Mining Limited, Australia through market purchases taking its total holding to 19.38%.

Tech Mahindra gained 0.82%. The company has now enhanced its presence in Eastern India by setting up a new BPO Centre in Kolkata. The facility will focus on providing end to end customer service delivery to Telecom Service Providers, The Kolkata centre will primarily be servicing Reliance Communications'' operations in the first phase of ramp up.

Bajaj Auto Ltd closed higher by 5.12%. The company has posted a net profit of Rs 2934.90 million for the quarter ended June 30, 2009 as compared to Rs 1751.10 million for the quarter ended June 30, 2008. Total Income has increased from Rs 23334.50 million for the quarter ended June 30, 2008 to Rs 23616.10 million for the quarter ended June 30, 2009.