Pre Session Commentary - July 15 2009

Today domestic markets are likely to open positive as majority of Asian markets have also opened positive. The US corporate results have brought a lot of cheer in the markets. Goldman Sachs reported better than expected results and also Intel has surprised with its phenomenal earnings per share. The northward movement of markets across Asia paves way for a firm domestic trend during the day’s session.

On Tuesday, domestic markets closed with phenomenal gains. The sentiments were pumped by the exemplary rally overnight in the US markets as well as northward march of Asian markets. The market was thronged by positive news from US as well as Singapore. The Singapore economy has grown by a staggering 20.4 per cent during the quarter ended June 30 ‘09. The Ministry of Trade and Industry said that the surge in the economic growth was fuelled by biomedical and electronics sectors. Sectors like Realty, Metal, CD and Power were the top gainers of the day with gains of 9.38%, 5.53%, 5.12% and 4.60% respectively. BSE Midcap and Smallcap gained by 4.27% and 4.45% respectively. Today domestic markets are likely to trade positive.

The BSE Sensex closed high by 453.38 points at 13,853.70 and NSE Nifty gained 137.35 points at 4,111.40. BSE Mid Cap and Small Cap closed with gains of 195.67 points and 225.32 points at 4,780.28 and 5,283.02. The BSE Sensex touched intraday high of 13,903.48 and intraday low of 13,549.42.

On Tuesday, the US stocks markets closed higher. The market sentiments were positive on the back of better than expected corporate results which overshadowed the macro economic worry of weak consumer demand. However the markets turned range bound after negative as well positive earnings report flogged the markets. There were also reports from Dell that the company would post lower second quarter margins as the demand drifted towards cheaper computers. On the other hand, after the markets closed Intel reported quarterly earnings at 18 cents per share, much higher than the earnings forecast of 8 cents per share. The total revenue of $8 billion and gross margin of 51 per cent were far better than expected. On macro economic level June Producer Price Index increased 1.8%. US light crude oil futures for August delivery closed at $59.52 per barrel down by 0.3 per cent on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) closed higher by 27.81 points at 8,359.49. NASDAQ index gained 6.52 points to 1,799.49 and the S&P 500 (SPX) closed up by 4.79 points at 905.84.

Indian ADRs ended mostly in green on Tuesday. In the banking space, ICICI Bank was up 3.52% while HDFC Bank was down 2.1%. In the telecom space, Tata Communication was up 1.51% while MTNL was down 1.35%. In the IT space, Patni Computers was up 3.89%, Wipro was up 0.45% while Infosys was down 0.44% and Satyam Computers was down 0.55%. In other sectors, Tata Motors was up 2.59%, Dr Reddy''s Labs was up 2.11% and Sterlite Industries was up 2.1%.

On Tuesday, the partially convertible rupee ended at Rs 48.96/09, 0.24% lower than its previous close at 49.08/09. The rupee gained strength on the back of phenomenal surge in local stock markets raising hopes for increased Dollar inflow.

The FIIs on Tuesday stood as net buyers in equity and debt. Gross equity purchased stood at Rs 2,071.50 Crore and gross debt purchased stood at Rs 455.30 Crore while the gross equity sold stood at Rs 1,881.10 Crore and gross debt sold stood at Rs 52 Crore. Therefore, the net investment of equity reported was Rs 190.40 Crore and net debt was Rs 403.30 Crore.

On BSE, total number of shares traded were 31.68 Crore and total turnover stood at Rs 4,323.61 Crore. On NSE, total number of shares traded were 74.56 Crore and total turnover was Rs 14,177.9 Crore.

Top traded volumes on NSE Nifty – Unitech with total volume traded 58282310 shares, followed by Suzlon Energy with 54489113, DLF with 14850754, SAIL with 9353721 and ICICI Bank with 7561363 shares.

On NSE Future and Options, total number of contracts traded in index futures was 692895 with a total turnover of Rs 13,579.76 Crore. Along with this total number of contracts traded in stock futures were 504263 with a total turnover of Rs 13,434.16 crore. Total numbers of contracts for index options were 1260338 with a total turnover of Rs 26,091.46 Crore and total numbers of contracts for stock options were 42279 and notional turnover was Rs 1,200.14 Crore.

Today, Nifty would have a support at 4,189 and resistance at 4,236 and BSE Sensex has support at 13,971 and resistance at 14,185.