Post Session Commentary - Aug 10 2009

Markets closed the unstable session on a lackluster note on the back of huge selling pressure over the indices, offsetting gains in Asian Stocks. Lower than normal monsoon rains and spread of the deadly swine flu in the country fueled the sentiment. On the other hand, negative European markets along with lower US index futures also weighed on the attitude of the investors. However, stocks witnessed upward movement at the initial stage on better than expected news about U.S. job losses. The BSE Sensex ended below 15,050 level and NSE Nifty closed below 4,450 mark.

Market belled the day on positive note backed by the firm cues from the US and Asian markets. The US stocks markets closed higher on Friday by logging impressive gains for the week due to the better-than-expected jobs report. Moreover, US jobs report revealed that fewest amount of job losses in nearly one year by coming in at 247,000 for July as against the consensus estimate called for 350,000 job losses. Further, Indian benchmark indices turned volatile soon after start and pared all initial gains. However, market managed to regain strength and moved into positive before losing strength yet again. Going ahead, stocks continued to swing between positive and negative terrain without any sign of recovery. During the final trading hours, market slipped sharply to close with losses on weak European markets. Investors’ were also worried on lesser than normal rain that may interrupt a hopeful revival in the domestic economy. From the sectoral front, most of the selling was observed in Auto, FMCG, Capital Goods, Realty, PSU, Power and Bank stocks. The border market indices also followed the same trend as BSE Midcap and Smallcap indices ended with losses of more than 2% each. However, IT and Teck stocks remained in limelight as witnessed most of the buying from these baskets.

Among the Sensex pack 23 stocks ended in red territory and 7 in green. The market breadth indicating the overall health of the market remained negative as 1800 stocks closed in red while 850 stocks closed in green and 76 stocks remained unchanged in BSE.

The BSE Sensex closed lower by 150.47 points or (0.99%) at 15,009.77 and NSE Nifty ended down by 43.75 points or (0.98%) at 4,437.65. BSE Mid Caps and Small Caps closed with losses of 92.77 and 120.73 points at 5,340.48 and 6,073.03 respectively. The BSE Sensex touched intraday high of 15,417.34 and intraday low of 14,902.02.

Losers from the BSE Sensex pack are M&M Ltd (9.12%), ACC Ltd (6.52%), Herohonda Motors (3.80%), HUL (3.48%), Tata Motors (3.27%), Maruti Suzuki (3.09%), Grasim Industries (3.00%), ITC Ltd (2.69%), ICICI Bank (2.54%), Bharti Airtel (2.51%), HDFC (2.09%), L&T Ltd (1.84%), JP Associates (1.83%), SBI (1.72%), DLF Ltd (1.52%), BHEL (1.41%) and RCom (0.96%).

Gainers from the BSE Sensex pack are TCS (6.02%), Wipro Ltd (2.80%), Infosys Tech (2.20%), Tata Power (2.12%), ONGC Ltd (1.90%), Hindalco (0.69%) and Sterlite Industries (0.50%).

On the global markets front the Asian markets that opened before the Indian market, ended mostly higher as better-than-expected news about U.S. job losses and Japan''s business spending raised hopes for recovery of the world''s two largest economies. Nikkei 225, Hang Seng and Seoul Composite ended higher by 554.15, 112.17 and 0.11 points at 20,929.52, 10,524.26 and 1,576.11 respectively. However, Shanghai Composite lost 10.93 points at 3,249.76. Singapore''s Straits Times Index remained closed in observance of National Day and it will re-open on Tuesday.

European markets, which opened after the Indian market, are trading in red. In Frankfurt the DAX index is trading down by 41.89 points at 5,417.07 and in London FTSE 100 is trading lower by 33.26 points at 4,698.30.

The BSE Auto index dropped by (4.52%) or 246.82 points at 5,210.27 on profit booking. Scrips that lost are M&M Ltd (9.12%), Bajaj Auto (9%), Escorts Ltd (5.07%), Bharat Forge (4.60%) and Apollo Tyre (4.11%).

The BSE FMCG index lost (2.96%) or 75.5 points at 2,479.02 on concerns over annual monsoon. Main losers are Colgate Palm (8.11%), United Spr (5.03%), HUL (3.48%), Marico Ltd (2.86%) and Godrej Cons (2.78%).

The BSE Capital Goods index dropped by (2.03%) or 247.11 points at 11,909.91. Losers are Suzlon Energy (6.67%), Praj Industries (6%), Aiaengineer (5.45%), Punj Lloyd (4.81%) and Gammon Indi (4.79%).

The BSE Realty index plunged (1.66%) or 61.14 points at 3,615.81. Losers are Pheonix Mill (8.01%), Sobha Dev (4.61%), Ansal Infra (4.15%), Ackruti (2.96%) and Omaxe Ltd (2.36%).

The BSE Consumer Durables index ended down by (1.49%) or 44.94 points at 2,968.31. As Gitanjali GE (6.09%), Rajesh Export (5.40%) and Videocon Ind (3.25%) ended in red.

The BSE IT index closed higher by (2.64%) or 103.31 points at 4,022.43 as better than expected US jobs data raised hopes for a recovery in the world''s largest economy. Gainers are Patni Computer (7.04%), Mphasis Ltd (6.02%), TCS Ltd (6.02%), Wipro Ltd (2.80%) and Infosys Tech (2.20%).

IDBI Bank dropped by 2.50%. The bank has slashed the interest rates on deposits in the range of 25 basis points to 50 basis points across various maturities effective August 12. Along with this, the bank has also announced reduction of one percentage point in lending rates for automobile loans. The bank has not made any changes in rates for deposits up to six months and all changes are for duration beyond six months.

Reliance Communications Ltd lost 0.96%. The company has posted a net profit of Rs 48026.50 million for the year ended March 31, 2009 as compared to Rs 25864.40 million for the year ended March 31, 2008. Total Income has increased from Rs 134266.50 million for the year ended March 31, 2008 to Rs 136946.70 million for the year ended March 31, 2009.

Hindustan Unilever Ltd slumped 3.48% after four lakh shares changed hands in two block deals on NSE.

Mundra Port and Special Economic Zone Ltd gained 3.36%. The largest private port in India has won the bid for the development of coal handling terminal at port of Mormugao, Goa, on design build, finance, operate and transfer (DBFOT) basis.

Austral Coke and Projects Ltd advanced by 5.01%. The company through its Guinea based sub-subsidiary Astra Energy Ltd SARL, has acquired 16 prospecting licenses of rich iron ore, bauxite and manganese ore blocks measuring 12,63,000 acres in Guinea in West Africa. The contract term is for 30 years with an extendable term of another 30 years.

Nucleus Software Exports Limited went up by 3.64%. The company has won a core banking order for their product FinnOne from Malayan Bank, Philippines for the implementation of Complete Banking Solution to enhance bank''s operations. Complete suite of FinnOne will be implemented at 9 branches of the bank including the head office.