Post Session Commentary - July 30 2009

The domestic market rebounded sharply from initial losses to close near day’s high after exhibiting instability for throughout the trading session. Speculators contributed to upward movement as indulged in covering short positions on the last day of the expiry of the July contracts in derivatives. Firm trading in European markets along with recovery in Asian markets and higher US index futures also added to the positive sentiments. In addition, market gained ground during afternoon trade after initial slide, also on encouraging first-quarter earnings by State Bank of India. The bank reported 42.03% rise in its net profit in first quarter. Meanwhile, inflation for week ended July 18 it came in at -1.54% as compared to -1.17% for the previous week ended July 11, 2009. The BSE Sensex ended above 15,350 level and NSE Nifty closed above 4,550 mark.

Market opened on flat note on mixed global cues and suddenly turned volatile ahead of the F&O expiry today. Asian markets were lower in early trading and the US stocks markets ended with losses on Wednesday on the back of disappointing durable goods orders report for the month of June which was worse than expected followed by unsatisfactory auction of USD 39 billion worth of 5-year treasury notes. Further, Indian benchmark indices were unable to stick on a particular direction and were trading with tedious sentiments. However, stocks managed to recover and landed in positive precinct backed by firm European markets. During final trading hours, market witnessed sharp gains on good buying interest backed by rise in Asian stocks. From the sectoral front, IT, FMCG, Bank, Teck and Realty stocks witnessed most of the buying from these baskets. BSE Mid Cap and BSE Small Cap indices remained on buyers’ radar. However, most of the selling was observed in Oil & Gas and Power stocks.

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 1503 stocks closed in green while 1170 stocks closed in red and 85 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 241.50 points or (1.41%) at 15,387.96 and NSE Nifty ended up by 57.95 points or (1.28%) at 4,571.45. BSE Mid Caps and Small Caps closed with gains 29.31 and 49.26 points at 5,506.40 and 6,204.01 respectively. The BSE Sensex touched intraday high of 15,409.91 and intraday low of 15,065.48.

Gainers Losers from the BSE Sensex pack are TCS Ltd (6.04%), HUL (5.15%), Wipro Ltd (4.68%), HDFC (4.31%), SBI (4.01%), ICICI Bank (3.14%), HDFC Bank (2.95%), Tata Steel (2.53%), ITC Ltd (2.34%), ACC Ltd (2.13%), L&T Ltd (1.85%) and Reliance Infra (1.80%).

Losers from the BSE Sensex pack are Sun Pharma (3.62%), BHEL (1.59%), Reliance (1.37%), Hindalco (0.74%) and RCom (0.72%).

Inflation for week ended July 18 fell for the seventh consecutive week as it came in at -1.54% as compared to -1.17% for the previous week ended July 11, 2009 and 12.54% during the corresponding week ended July 19, 2008 of the previous year. The Wholesale Price Index for ''All Commodities'' for the week ended July 18, 2009 rose by 0.04% to 236.8 from 236.7 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 upby 55.13, 98.58, 51.97, 32.13 and 10.42 points at 3,321.56, 20,234.08, 10,165.21, 2,636.19 and 1,534.74 respectively.

European markets, which opened after the Indian market, are trading in green. In Frankfurt the DAX index is trading up by 33.63 points at 5,303.95 in London FTSE 100 is trading higher by 47.71 points at 4,595.24.

The BSE IT index ended up by (2.8%) or 105.95 points at 3,891.84. Scrips that gained are Patni Computer (12.55%), Mphasis Ltd (7.45%), Aptech Ltd (6.72%), TCS Ltd (6.04%) and Tech Mahindra (4.79%).

The BSE FMCG index closed higher by (2.7%) or 69.72 points at 2,654.14. HUL (5.15%), Ruchi Soya (2.85%), Tata Tea Ltd (2.79%) and United Spr (2.56%) ended in green territory.

The BSE Bank index increased by (2.2%) or 178.45 points to close at 8,305.91. Main gainers are Reliance Oriental Bank (4.41%), SBI (4.01%), ICICI Bank (3.14%), Union Bank (3.29%) and Canara Bank (3.03%).

The BSE Teck index advanced by (1.57%) or 45.10 points at 2,915.23. Gainers are Patni Computer (12.55%), Mphasis Ltd (7.45%), Aptech Ltd (6.72%), TCS Ltd (6.04%) and Tech Mahindra (4.79%).

The BSE Realty index gained (1.3%) or 50.79 points at 3,962.56. Ansal Infra (4.07%), Housing Dev (3.85%), Orbit Co (3.58%), Omaxe Ltd (3.31%) and Mahindra Life (2.33%) closed in positive territory.

The BSE Oil & Gas index ended down by (0.19%) or 17.38 points at 9,235.04. Scrips that lost are Aban Offshore (2.22%), Reliance (1.37%), Reliance Pet (0.96%) and Cairn Ind (0.58%).

Tata Communications advanced by 3.31%, a leading provider of the new world of communications, announced today the company has successfully launched a voice outsourcing partnership and network expansion project with gotalk. gotalk is an Australia-based communications supplier of retail domestic and international voice services.

Ranbaxy Laboratories Limited gained 0.46%. Ranbaxy Pharmaceuticals Canada Inc. (RPCI), a wholly owned subsidiary of company, announced that RL1, has received approval in Canada to manufacture and market Ran-Ropinirole 0,25 mg, 1,0 mg, 2.0 mg, and 5.0 mg tablets (Ropinirole Uydrochloride) from Health Canada, Therapeutic Products Directorate (TPD).

State Bank of India (SBI) ended up by 0.41%. The bank has reported rise of 42.03% in Net Profit to Rs. 23303.70 million for the quarter ending on June 30, 2009 against Rs 16407.90 lacs for the quarter ending on June 30, 2008. Total Income increased by 29.86% to Rs. 210415.10 million for the quarter ending on June 30, 2009 against Rs 162030.70 million for the quarter ending on June 30, 2008.

GMR Infrastructure Ltd closed higher by 1.94%. The company has informed that the Board of Directors of the Company at its meeting held on July 30, 2009, inter alia, has accorded approval for sub-division of all its equity shares of Rs 2/- each into 2 equity shares of Re 1/- each (per share), subject to the approval of members of the Company at the forthcoming Annual General Meeting.

Reliance Industries Ltd lost 1.37% after Anil Ambani said he will approach the Supreme Court on Thursday, 30 July 2009, seeking a final hearing on the two-year-old gas supply dispute on 1 September 2009.

Four Soft dropped by 4.85%. The company announced that Unique Global Logistics Pvt Ltd has selected its freight forwarding application 4S eTrans to be implemented across Its multiple locations.