Pre Session Commentary - July 6 2009

Today domestic markets are likely to open with a positive gap on the occasion of the UPA government’s budget to be announced in a couple of hour’s time. The sentiments of investors are optimistic on the government’s initiative to bring new policies and amendments that would help sustain the GDP growth. The investors have exuded their level of interest and optimism on Friday’s trade when markets closed with phenomenal gain at broader level.

On Friday, domestic markets closed with phenomenal gains. After a weak opening the domestic markets managed to earn substantial gain towards the end. The range bound trading in the Asian and European markets hardly guided domestic market sentiments. Infact, the reformist Railway Budget which did not include any freight increase was positive for key sectors like Steel, Cement etc. The government’s thrust was more on infrastructure development of Railways through public-private partnership and also optimum utilization of existing land and other resources. Sectors like Bankex, CG, Power, Realty and HC gained by 2.19%, 1.90%, 1.84%, 1.80% and 1.18% respectively. BSE Midcap and Smallcap managed to close with gains of 0.83% and 0.43% respectively. Today domestic markets are likely to trade in the northward direction with firm positive gain.

The BSE Sensex closed up by 254.56 points at 14,913.05 and NSE Nifty ended up by 75.40 points at 4,424.25. BSE Mid Caps closed with gains of 42.95 points and 24.71 points at 5,187.22 and 5,824.95 respectively. The BSE Sensex touched intraday high of 14,945.85 and intraday low of 14,499.74.

On Friday, US Markets were closed on the celebration of Independence Day.

Today major stock markets in Asia are trading mixed. Hang Seng is flat at 18,205.34. Shanghai Composite is up by 9.877 points at 3,098.24. Japan''s Nikkei is trading down by 154.77 points at 9,661.30. Strait Times is low by 15.36 points at 2,284.39. Seoul Composite is up by 4.13 points at 1,424.17 and KLSE Composite is flat at 1,078.71.

On Friday, the partially convertible rupee ended at Rs 47.89/91, 5 paise stronger than its previous close at 47.94/95. The rupee gained strength on the back of phenomenal gain in local stock markets.

On BSE, total number of shares traded were 35.57 Crore and total turnover stood at Rs 5,578.05 Crore. On NSE, total number of shares traded was 79.92 Crore and total turnover was Rs 16,000.4 Crore.

Top traded volumes on NSE Nifty – Suzlon Energy with total volume traded 45787182 shares, followed by Unitech with 32303807, Tata Steel with 18143006, SAIL with 12185409 and DLF with 12149973 shares.

On NSE Future and Options, total number of contracts traded in index futures was 615112 with a total turnover of Rs 12,936.98 Crore. Along with this total number of contracts traded in stock futures were 513559 with a total turnover of Rs 15,190.77 crore. Total numbers of contracts for index options were 1114757 with a total turnover of Rs 25,014.09 Crore and total numbers of contracts for stock options were 54028 and notional turnover was Rs 1,699.63 Crore.

Today, Nifty would have a support at 4,475 and resistance at 4,539 and BSE Sensex has support at 15,118 and resistance at 15,453.