Pre Session Commentary - July 7 2009

Today domestic markets are likely to open positive as little rebound on the early trading hours may happen. Yesterday’s huge losses due to disappointing budget devastated the market sentiments and therefore one could see some cautiousness prevailing across the broader level for a couple of days. The domestic traders may now track the global sentiments as there would hardly be any domestic news to drive the markets.

On Monday, domestic markets shattered with huge losses. After a subdued opening the markets awaited the final countdown of the UPA budget session. However as the Finance Minister Pranab Mukherjee started with budget session heavyweight stocks succumbed to slaughtering that continued till the end. Stocks at broader level were ruthlessly hammered by the disgust and despair of traders. Key sectors like Bankex, Realty, CG, Metal and Power plummeted by 8.17%, 7.28%, 7.02%, 6.57% and 6.36% respectively. BSE Midcap and Smallcap were also slaughtered as they lost 5.17% and 4.50% respectively. Today domestic markets are likely to trade range bound.

The BSE Sensex closed low by 869.65 points at 14,043.40 and NSE Nifty ended with a huge loss of 258.55 points at 4,165.70. BSE Mid Caps closed with losses of 268.34 points and 262.08 points at 4,918.88 and 5,562.87 respectively. The BSE Sensex touched intraday high of 15,097.87 and intraday low of 13,959.44.

Indian ADRs ended mostly down on Monday. In the banking space, HDFC Bank was down 2.2% and ICICI Bank was down 0.9%. In the telecom space, MTNL was down 0.1% and Tata Communication was down 0.6%. In the IT space, Infosys was down 1.1%, Patni Computers was down 0.3%, while Satyam Computers was up 0.1% and Wipro was up 0.1%. In other sectors, Tata Motors was down 0.3%, Dr Reddy''s Labs was down 0.1% while Sterlite Industries was up 0.1%.

Today major stock markets in Asia are trading mixed. Hang Seng is up at 18,117.41. Shanghai Composite is up by 1.869 points at 3,126.536. Japan''s Nikkei is trading down by 27.62 points at 9,653.25. Strait Times is up by 17.67 points at 2,283.76. Seoul Composite is up by 2.06 points at 1,431 and KLSE Composite is low by 6.86 points at 1,065.83.

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.

The FIIs on Monday stood as net buyers in equity and in debt. Gross equity purchased stood at Rs 2,149.60 Crore and gross debt purchased stood at Rs 2,404.80 Crore while the gross equity sold stood at Rs 1,581.30 Crore and gross debt sold stood at Rs 400.30 Crore. Therefore, the net investment of equity reported was Rs 568.40 Crore and net debt was Rs 2,004.50 Crore.

On BSE, total number of shares traded were 54.57 Crore and total turnover stood at Rs 7,330.76 Crore. On NSE, total number of shares traded was 108.03 Crore and total turnover was Rs 21,546.46 Crore.

Top traded volumes on NSE Nifty – Unitech with total volume traded 87241340 shares, followed by Suzlon Energy with 59467327, DLF with 22471754, ITC with 16917635 and ICICI Bank with 14367600 shares.

On NSE Future and Options, total number of contracts traded in index futures was 1203596 with a total turnover of Rs 24,941.52 Crore. Along with this total number of contracts traded in stock futures were 752603 with a total turnover of Rs 21,192.05 crore. Total numbers of contracts for index options were 2172630 with a total turnover of Rs 48,611.82 Crore and total numbers of contracts for stock options were 60300 and notional turnover was Rs 1,911.14 Crore.

Today, Nifty would have a support at 4,056 and resistance at 4,199 and BSE Sensex has support at 13,740 and resistance at 14,195.