Pre Session Commentary - July 9 2009

Today domestic markets are likely to open positive as majority of Asian markets have opened in the positive terrain. The sentiments across Asia are still embedded with the bearish sentiments as the G-8 leaders have commented that the economic crisis in still not over and cause serious effects across the globe. There could be some rebound in the early trade after yesterday’s losses.

On Wednesday, domestic markets once again ended with huge losses for the second alternative day of the week. Negative sentiments from the US and other Asian markets afflicted the domestic traders during the early trading hours. The selling pressure was further intensified by news that the northwest region of India has received 45% below the average monsoon rainfall. The overall sentiment at the broader level was weak and therefore small and Sectors like Realty, CG, Metal and Bankex were the top losers for the day as they fell by 8.47%, 5.05%, 4.22% and 4.09% respectively. BSE Midcap and Smallcap ended with a loss of 3.66% and 3.73%. Today domestic markets are likely to trade range bound.

The BSE Sensex closed low by 401.30 points at 13,701.76 and NSE Nifty ended with a loss of 123.25 points at 4,078.90. BSE Mid Cap and Small Cap closed with losses of 181.50 points and 206.92 points at 4,782.84 and 5,337.35 respectively. The BSE Sensex touched intraday high of 14,039.58 and intraday low of 13,701.76.
On Wednesday, US Markets closed mixed. There was lack of any specific news in the markets and as a result trading was little subdued. The G-8 leaders believe that the economic crisis is still not over and could cause serious effect across the globe. The S&P 500 surrendered easily on the back of the auction of $19 billion of 10-year Treasury note which sent the benchmark 10-year bond yield to 3.3% for the first time since May. Retailers showed immense resilience by advancing 2.0% on the back of Family Dollar''s better-than-expected quarterly earnings results that helped win support for the sector ahead of a barrage of monthly same-store sales announcements. US light crude oil for August Futures delivery declined by 4.4 per cent at $60.14 per barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) was up by 14.81 points at 8,178.41. NASDAQ index closed flat at 1,747.71 and the S&P 500 (SPX) fell by 1.47 points to close at 879.56 points.

Indian ADRs ended in red on Wednesday. In the telecom space, MTNL was down 8.05% and Tata Communication was down 1.43%. In the banking space, ICICI Bank was down 6.67% and HDFC Bank was down 2.75%. In the IT space, Infosys was down 2.75%, Wipro was down 1.71%, Patni Computers was down 5.30%. However, Satyam Computers was up 1.80%. In other sectors, Sterlite Industries was down 8.59%, Tata Motors was down 6.94% while Dr Reddy''s Labs was up 1.21%.

Today major stock markets in Asia are trading mixed. Hang Seng is low by 87.46 points at 17,633.61. Shanghai Composite is flat at 3,080.87. Japan''s Nikkei is trading down by 69.16 points at 9,351.59. Strait Times is low by 26.59 points at 2,286.36. Seoul Composite is up by 6.81 points at 1,437.83 and KLSE Composite is flat at 1,065.47.

On Wednesday, the partially convertible rupee ended at Rs 48.88/89, 0.89% weaker than its previous close at 48.45/46. The rupee gained strength on the back of rise in local stock markets.

On BSE, total number of shares traded were 40.04 Crore and total turnover stood at Rs 5,400.03 Crore. On NSE, total number of shares traded was 91.65 Crore and total turnover was Rs 16,975.43 Crore.

Top traded volumes on NSE Nifty – Unitech with total volume traded 104177957 shares, followed by Suzlon Energy with 60493387, SAIL with 15047693, DLF with 14268810 and Tata Steel with 12824737 shares.

On NSE Future and Options, total number of contracts traded in index futures was 879832 with a total turnover of Rs 17,380.88 Crore. Along with this total number of contracts traded in stock futures were 622413 with a total turnover of Rs 16,610.49 crore. Total numbers of contracts for index options were 1453276 with a total turnover of Rs 31,148.21 Crore and total numbers of contracts for stock options were 48288 and notional turnover was Rs 1,449.17 Crore.

Today, Nifty would have a support at 3,969 and resistance at 4,132 and BSE Sensex has support at 13,510 and resistance at 13,892.