Post Session Commentary - July 24 2009

Domestic market concluded its volatile journey in green terrain on significant buying interest led by firm global cues. Asian markets ended with gains and European markets reversed early losses. In addition, US index futures also turned positive and contributed to the upswing in key benchmark indices. Meanwhile, the first quarter results of current financial year announced so far are encouraging, with lower costs helping in positive attitude. However, market consolidated in afternoon trade before gathering momentum again. BSE Sensex ended above 15,350 level and NSE Nifty closed above 4,550 mark.

Market extended its yesterday’s gains and witnessed gap up opening as global market sentiments continue to rise. The Asian markets were trading in upward direction in early trade and US markets opened significantly higher on Thursday with the Dow Jones crossed above the 9000 mark for the first time since January this year. Additionally, the S&P 500 finished at its highest point since November. This rally was backed by a large batch of better-than-expected earnings results from industry heavyweights followed by better home sales data that sent all three major indices to their best levels in months. Further, Indian benchmark indices turned volatile soon after start as investors booked some profits after a spectacular rally in the previous session. Market slipped from the day’s high as key stocks were facing selling pressure at higher levels. However, during second half of the trading market regained strength and extended gains till end on earning outlook. From the sectoral front, most of the buying was seen in Auto, Realty, Metal, Consumer Durable, IT, Teck, Power, Capital Goods and FMCG stocks. BSE Mid Cap and BSE Small Cap indices also witnessed buying during the trading. However, Bank stocks remain out of favour.

Among the Sensex pack 23 stocks ended in green territory and 7 in red. The market breadth indicating the overall health of the market remained positive as 1782 stocks closed in green while 897 stocks closed in red and 85 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 147.92 points or (0.97%) at 15,378.96 and NSE Nifty ended up by 44.80 points or (0.99%) at 4,568.55. BSE Mid Caps and Small Caps closed with gains 88.44 and 107.35 points at 5,381.81 and 6,050.20 respectively. The BSE Sensex touched intraday high of 15,418.61 and intraday low of 15,168.52.

Gainers from the BSE Sensex pack are Tata Motors (9.72%), DLF Ltd (6.49%), Maruti Suzuki (6.35%), Tata Steel (6.06%), JP Associates (5.16%), Herohonda Motors (4.19%), M&M Ltd (3.62%), Hindalco (3.31%), Sterlite Industries (3.20%), ONGC Ltd (3.05%), Tata Power (2.44%), Infosys Tech (2.22%) and HUL (2.17%).

Losers from the BSE Sensex pack are Bharti Airtel (48.95%), Sun Pharma (2.21%), HDFC (1.65%), SBI (1.59%) and Reliance (1.20%).

On the global markets front the Asian markets that opened before the Indian market, ended higher for a ninth day mainly on South Korean rise. South Korea’s gross domestic product rose 2.3% from the first quarter, when the nation evaded a recession by growing 0.1%. Shanghai Composite, Hang Seng, Nikkei 225, Straits Times and Seoul Composite ended up by 44.11, 165.09, 151.61, 48.53 and 6.10 points at 3,372.60, 19,982.79, 9,944.55, 2,533.43 and 1,502.59 respectively.

European markets, which opened after the Indian market, are trading in green. In Frankfurt the DAX index is trading up by 40.53 points at 5,287.81 and in London FTSE 100 is trading higher by 28.19 points at 4,587.99.

The BSE Auto index advanced by (5.14%) or 271.07 points at 5,545.30 on better-than-expected first quarter results from auto major Maruti Suzuki India yesterday. Scrips that gained are Bharat Forge (14.06%), Amtek Auto (10.85%), Tata Motors (9.72%), MRF Ltd (8.77%) and Ashok Leyland (8.48%).

The BSE Realty index surged (4.26%) or 154.96 points at 3,790.65. Pheonix Mill (11.69%), Ansal Infra (9.67%), Parsvnath (7.86%), DLF Ltd (6.49%) and Anant Raj (5.67%) closed in positive territory.

The BSE Metal stocks gained (2.39%) or 282.59 points to close at 12,118.27 as LMEX, a gauge of six metals traded on the London Metal Exchange rose 1.29% overnight. Major gainers are Tata Steel (6.06%), Jindal Saw (5.89%), Hindalco (3.31%), Sterlite Industries (3.20%) and Jindal Steel (2.71%).

The BSE Consumer Durable closed higher by (2.37%) or 72.82 points at 3,139.03. Videocon Ind (7.26%), Blue Star L (2.7%), Rajesh Export (1.86%), Gitanjali GE (0.4%) and Titan Ind (0.2%) ended in green territory.

The BSE IT index ended up by (1.93%) or 71.45 points at 3,778.67. Gainers are NIIT Ltd (10.68%), Aptech Ltd (4.41%), HCL Ltd (4.32%), Mphasis Ltd (2.80%) and Infosys Tech (2.22%).

The BSE Teck index went up by (1.93%) or 71.45 points to close at 3,778.67. Main gainers are NIIT Ltd (10.68%), Aptech Ltd (4.41%), HCL Ltd (4.32%), Mphasis Ltd (2.80%) and Infosys Tech (2.22%).

The BSE Bank index decreased by (0.88%) or 74.06 points to close at 8,335.02. Main losers are Union Bank (4.97%), Bank of India (2.69%), PNB (2.54%), SBI (1.59%) and ICICI Bank (1.04%).

Tata Motors advanced by 9.72% after its American depository receipt (ADR) advanced 3.49% on Thursday, 23 July 2009.

Infosys Technologies Ltd. gained 2.22%. The company has won a contract to design, develop and support portal for the ministry of commerce and industry. The duration of the contract is 10 years. The stock is up by (0.64%) at Rs.1,955.40.

Bharat Forge Ltd is ended up by 14.06%. The company has posted a net profit of Rs 9.60 million for the quarter ended June 30, 2009 as compared to Rs 265.60 million for the quarter ended June 30, 2008. Total Income has decreased from Rs 6494.50 million for the quarter ended June 30, 2008 to Rs 3638.20 million for the quarter ended June 30, 2009.

Essel Propack Ltd spurted 4.94% after the company posted net profit of Rs 5.24 crore in Q2 June 2009 as against net loss of Rs 9.75 crore in Q2 June 2008, on a consolidated basis.

Gujarat State Petronet Ltd zoomed 5.15% after net profit increased phenomenally 146.6% to Rs. 80.49 crore on a 76.4% rise in sales to Rs. 210.82 crore in Q1 June 2009 over Q1 June 2008.

Ambuja Cements Ltd plunged 1.96% after net profit sunk 43.74% to Rs 324.65 crore in Q2 June 2009 over Q2 June 2008.

Alstom Projects India Ltd dropped 0.47% despite its net profit increased phenomenally 100.60% to Rs. 38.75 crore in Q1 June 2009 compared to Q1 June 2008.