Post Session Commentary - Aug 14 2009

After previous session’s strong rally, the domestic market closed the today’s instable session in red terrain on profit booking. Depressing US index futures weighed on the sentiments. Benchmark indices were under pressure also on concerns regarding poor monsoon. However, market tried to recover during mid session on the positive Asian markets and firm European markets, though were unable to continue the respite. The BSE Sensex ended below 15,450 level and NSE Nifty closed below 4,500 mark.

Market belled the day on a slight positive note after a sharp rise on the previous working day. The US stocks markets closed higher on Thursday, on strong performance by Wal-Mart. In addition, investors applauded an encouraging business-inventories report, which indicated that the recession might be winding down. Wal-Mart beats Street expectations and reported better-than-expected earnings along with solid outlook. However, Indian benchmark indices suddenly turned volatile and started losing ground as selling emerged among the key stocks. Further, market continued to extend its losses despite little unsuccessful attempt to recover. After skipping up and down on account of continuous buying and selling activity witnessed in heavyweights, market finally landed to negative terrain. From the sectoral front, most of the selling was seen in Realty, FMCG, IT, Teck, Auto and Pharma stocks. However, Oil & Gas and Consumer Durables stocks were in limelight as witnessed most of the buying from these baskets.

Among the Sensex pack 25 stocks ended in red territory and 5 in green. The market breadth indicating the overall health of the market remained negative as 1417 stocks closed in red while 1243 stocks closed in green and 72 stocks remained unchanged in BSE.

The BSE Sensex closed lower by 106.86 points at 15,411.63 and NSE Nifty ended down by 24.95 points at 4,580.05. BSE Small Caps closed with gains of 25.51 points at 6,412.56 whereas BSE Mid Caps ended with losses of 50.8 points at 5,603.81. The BSE Sensex touched intraday high of 15,535.47 and intraday low of 15,367.61.

Losers from the BSE Sensex pack are JP Associates (3.52%), HUL (2.60%), NTPC Ltd (2.41%), RCom (2.34%), ACC Ltd (2.21%), HDFC (2.19%), Maruti Suzuki (1.99%), Herohonda Motors (1.93%), ITC Ltd (1.78%), ICICI Bank (1.69%), Sun Pharma (1.63%), Grasim Industries (1.39%), Tata Motors (1.38%), DLF Ltd (1.25%) and Infosys Tech (1.26%).

Gainers from the BSE Sensex pack are ONGC Ltd (4.79%), Reliance Infra (1.49%), Reliance (0.54%), Sterlite Industries (0.34%) and HDFC Bank (0.13%).

On the global markets front the Asian markets that opened before the Indian market, ended mostly higher on indication that the world economy is emerging from a deep recession. Hang Seng, Nikkei 225, Singapore''s Straits Times Index and Seoul Composite ended higher by 32.03, 80.14, 17.33 and 26.77 points at 20,893.33, 10,597.33, 2,631.51 and 1,591.41 respectively. However, Shanghai Composite lost 93.58 points at 3,046.97.

European markets, which opened after the Indian market, are trading in green, as investors remained hopeful over signs that a global economic slowdown may be coming to an end. GDP data released on Thursday indicated Europe''s powerhouses Germany and France had returned to growth as both grew by 0.3% between April and June. In Frankfurt the DAX index is trading higher by 26.48 points at 5,427.59 and in London FTSE 100 is trading up by 17.71 points at 4,773.17.

The BSE Realty index lost (1.69%) or 68.2 points at 3,963.06 on profit taking. Losers are Orbit Co (4.97%), Penland Ltd (4.14%), Ackruti (4.01%), Omaxe Ltd (3.88%) and Ansal Infra (3.72%).

The BSE FMCG index ended down by (1.26%) or 32.48 points at 2,552.80. As HUL (2.60%), ITC Ltd (1.78%), United Spr (1.45%), United Brew (1.10%) and Ruchi Soya (0.40%) ended in red.

The BSE IT index closed lower by (1.16%) or 46.86 points at 3,977.73 on weak US retail sales data. Losers are HCL Tech (4.15%), Financ Tech (3.25%), Tech Mahindra (1.43%), Infosys Tech (1.23%) and TCS Ltd (1.21%).

The BSE Teck index dropped by (1.05%) or 31.12 points at 2,920.82. Scrips that lost are HCL Tech (4.15%), Financ Tech (3.25%), Wire & Wirles (2.70%), RCom (2.34%) and Him Futr Com (2.13%).

The BSE Auto index lost (1.04%) or 58.6 points at 5,569.2 on worries arising from scanty rains as auto firms derive larger revenue from rural India. Main losers are Bharat Forge (3.00%), Maruti Suzuki (1.99%), Herohonda Motors (1.93%), Tata Motors (1.38%) and MRF Ltd (1.06%).

The BSE Oil & Gas index advanced by (1.73%) or 167.60 points at 9,869.21 as oil prices inclined overnight on gains in US stock markets. Gainers are ONGC Ltd (4.79%), HPCL (3.60%), Cairn Ind (3.27%), Gail India (3.27%) and IOC Ltd (3.13%).

HDFC dropped by 2.19%. The country’s largest home loan financer has reduced the interest rate by 50 basis points on loan amount ranging between Rs.30-50 lakh. After this cut, the new rate will carry 9% per annum down from 9.5% earlier. However, the stock is now trading down by (2.16%) at Rs. 2,312.

Punjab National Bank ended lower by 1.34%. The bank has slashed home and car loan rates by 50 basis points where the bank has launched ''''PNB Festival Season Bonanza Offer 2009'''' that offers attractive rates to people during the festival season. However, PNB''''s campaign is said to come a week after SBI''''s three-month-long home loan campaign, offering loans at 8%.

Sterlite Industries is closed higher by 0.34% amid reports that the government is planning to sell its 49% stake in Bharat Aluminium Company (Balco) to Sterlite Industries at around Rs.2000 crore. Sterlite Industries had earlier bought 51% stake in Balco in 2001.

Tulsyan NEC Ltd gained 0.69% after the company said its board will meet on 18 August 2009 to consider issue of equity shares on rights basis.

IndusInd Bank Ltd spurted 2.69% after the bank said its capital adequacy ratio, or CAR, has risen to over 15% following its Rs. 480 crore qualified institutional placement.

eClerx Services Ltd gained 1.70% after private equity firm Sequoia Capital bought a 6% stake in the company from Burwood Ventures for nearly Rs. 40 crore in a block deal on Wednesday, 12 August 2009.

Indraprastha Gas Ltd gained 12.49% on buzz that the company signed a pact with Reliance Industries and its partner NIKO for purchasing of gas from D6 block of Krishna-Godavari basin at $4.2 per million British thermal unit.

Man Industries India Ltd went up by 10.49%. The company has informed that the Company has secured an order worth Rs 200 crore from Gail (India) Ltd and orders worth of Rs 550 crore from Middle East and African Continent for supply of LSAW pipes.