Post Session Commentary - July 23 2009

Domestic market bounced back from previous session’s losses to close near day''s high backed by firm cues from Asian markets. In addition, firm US index futures also added to the positive sentiments. Key benchmark indices witnessed upswing despite negative cues from European stocks. Market gained ground as strong buying emerged across the board during final trading hours led by strong Q1 June 2009 results of Indian companies. Meanwhile, Inflation for week ended July 11 came in at -1.17% vs -1.21% for the previous week ended July 4, 2009, marking a sixth straight week fall. BSE Sensex ended above 15,200 level and NSE Nifty closed above 4,500 mark.

Market opened on pleasant note in line with other Asian counterparts. The Asian markets opened with remarkable gains whereas on Wednesday, the US markets closed mixed amid higher expectations of quarterly earnings by traders. However the Nasdaq logged its eleventh straight advance due to continued strength among large-cap tech stocks. Further, Indian benchmark indices continued to trade on upbeat note backed by of fresh capital inflows by foreign funds. Announcement that Foreign Institutional Investors (FIIs) and the Non-Resident Indians (NRIs) have been allowed to invest in Indian Depository Receipts (IDR), according to the operational guidelines issued by the Reserve Bank of India on Wednesday, 22 July 2009, also contributed to the upward journey. However, stocks cooled down a little after inflation stayed in negative for the sixth consecutive week at -1.17% for the week ended July 11, 2009. Though, market ignored the inflation data further and continued to extend gains. Huge buying over the ground led sharp rally during final trading hours and market witnessed strong close. From the sectoral front, investors on-loaded position across the sectors. Among those, Realty, Consumer Durable, Metal, FMCG, Auto, Pharma, Power and Oil & Gas stocks witnessed most of the buying from these baskets. BSE Mid Cap and BSE Small Cap indices also followed the same trend.

Among the Sensex pack 28 stocks ended in green territory and 2 in red. The market breadth indicating the overall health of the market remained positive as 1803 stocks closed in green while 835 stocks closed in red and 80 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 387.92 points or (2.61%) at 15,231.04 and NSE Nifty ended up by 124.85 points or (2.84%) at 4,523.75. BSE Mid Caps and Small Caps closed with gains 118.63 and 125.49 points at 5,293.37 and 5,942.85 respectively. The BSE Sensex touched intraday high of 15,264.84 and intraday low of 14,997.75.

Gainers from the BSE Sensex pack are Reliance Infra (6.91%), DLF Ltd (6.77%), Maruti Suzuki (6.44%), Hindalco (6.08%), ACC Ltd (5.80%), ITC Ltd (5.55%), Sterlite Industries (5.22%), JP Associates (4.93%), RCom (4.91%), Tata Motors (4.88%), M&M Ltd (4.80%), Tata Steel (4.13%), Grasim Industries (3.86%), Reliance (3.08%), Herohonda Motors (2.98%), L&T Ltd (2.86%) and HUL (2.64%).

Loser from the BSE Sensex pack is Bharti Airtel (1.09%).

Inflation for week ended July 11 came in at -1.17% vs -1.21% for the previous week ended July 4, 2009, marking a sixth straight week fall. The inflation during the corresponding week July 12, 2008 stood at 12.13%. The Wholesale Price Index for ''All Commodities'' for the week ended 11th July 2009 rose by 0.1% to 236.7 from 236.4 for the previous week.

On the global markets front the Asian markets that opened before the Indian market, ended higher. Shanghai Composite, Hang Seng, Nikkei 225, Straits Times and Seoul Composite ended up by 31.88, 569.53, 69.78, 34.07 and 2.45 points at 3,328.49, 19,817.70, 9,792.94, 2,484.90 and 1,496.49 respectively.

European markets, which opened after the Indian market, are trading in red. In Frankfurt the DAX index is trading down by 10.71points at 5,110.85 and in London FTSE 100 is trading lower by 11.25 points at 4,482.48.

The BSE Realty index surged (5.08%) or 175.66 points at 3,635.69. DLF Ltd (6.77%), Housing Dev (5.19%), Unitech Ltd (5.16%), Orbit Co (4.97%) and Penland Ltd (4.58%) closed in positive territory.

The BSE Consumer Durable closed higher by (4.47%) or 131.27 points at 3,066.21. Blue Star L (7.65%), Titan Ind (4.37%), Videocon Ind (2.51%), Rajesh Export (2.16%) and Gitanjali GE (0.92%) ended in green territory.

The BSE Metal stocks gained (4.32%) or 490.07 points to close at 11,835.68 as LMEX, a gauge of six metals traded on the London Metal Exchange rose 1.72% overnight. Major gainers are Ispat Industries (7.02%), Hindalco (6.08%), Sterlite Industries (5.22%), Hindustan Zinc (5.08%) and Jindal Steel (4.97%).

The BSE FMCG index ended up by (3.95%) or 96.71points at 2,547.12. Gainers are United Brew (11.36%), Ruchi Soya (6.28%), ITC Ltd (5.55%), Britania Indus (4.39%) and HUL (2.64%).

The BSE Auto index advanced by (3.87%) or 196.33 points at 5,274.23. Scrips that gained are Maruti Suzuki (6.44%), Amtek Auto (5.98%), Tata Motors (4.88%), M&M Ltd (4.80%) and MRF Ltd (3.97%).

The BSE Pharma index increased by (2.85%) or 206.66 points to close at 3,845.72. Main gainers are Glenmark Pharma (6.68%), Opto Circuit (5.43%), Aurobindo Pharma (5.33%), Dr Reddys Lab (4.78%) and Cipla Ltd (4.75%).

KEC International Ltd zoomed 8.71%. The company has won four orders totaling to Rs, 471 crores in the domestic market. The two orders are from North East Transmission Co. Ltd. (a Joint Venture of QNGC, IL&F5 and Govt of Tripura).

Ramsarup Industries Ltd gained 4.98%. The company bagged orders worth Rs. 62 crores from the Rajasthan Urban Sector Development Investment Program (RUlDP-phase-II) for laying of sewerage lines at Jhunjhunu and Nagaur districts in northern Rajasthan.

Mahindra & Mahindra (M&M) Ltd increased by 4.80%. The company is planning to drive on rural markets in order to push its recent launch pick up- Mahindra Bolero Maxi Truck.

The Andhra Bank ended up by 0.85%. The bank planned to include 500 more branches in the next four years in order to increase its total branch network to 2000, a top bank official said.

Maruti Suzuki India Ltd advanced by 6.44%. The company has posted a net profit after tax of Rs 5835.40 million for the quarter ended June 30, 2009 as compared to Rs 4658.50 million for the quarter ended June 30, 2008. Total Income has increased from Rs 50823.60 million for the quarter ended June 30, 2008 to Rs 67095.30 million for the quarter ended June 30, 2009.

ACC Ltd gained 5.80%. The company has posted a net profit of Rs 4856.193 million for the quarter ended June 30, 2009 where as the same was at Rs 2714.242 million for the quarter ended June 30, 2008. Total Income is Rs 21382.483 million for the quarter ended June 30, 2009 where as the same was at Rs 18541.087 million for the quarter ended June 30, 2008.