Post Session Commentary - Aug 28 2009

The Indian market made smart recovery from day’s low to close with handsome gains due to fresh buying momentum emerged during late hours. All round buying contributed to the sharp rebound backed by strong cue from European markets. Positive US index futures also added to the northward journey. Benchmark indices were higher in early trade also on resurgence of monsoon rains. According to the Meteorological Department, monsoon rains were 5% below average in the week to 26 August 2009, which is close to the normal. However, market turned weak during afternoon tracking weakness in Chinese stocks. The BSE Sensex ended above 15,900 level and NSE Nifty closed above 4,700 mark after hitting a new 52-week high of 4,743.

Market belled the day on flat note and suddenly turned volatile in line with mixed Asian markets. However, US stocks markets ended with modest gains on Thursday backed by a late rally among bank stocks as well as higher oil prices. Meanwhile, US GDP reported decline of 1% in second quarter, which is better than expected. Additionally, consumer spending declined less than expected and jobless claims remained mixed when compared with expectations. Further, Indian stocks turned choppy and continued to move up and down. Going ahead, stocks slipped into red during afternoon trade as investor’s enthusiasm for risk diminished. However, market bounced back from lows during last trading hours to end in green in line with firm European stocks. From the sectoral front, Realty, Auto, Capital Goods, Bank, Oil & Gas and Metal stocks reported most of the gains. BSE Midcap and Smallcap stocks also reported upward movement. However, Capital Goods, FMCG and IT stocks remained out of favor during trading.

Among the Sensex pack 21 stocks ended in green territory and 9 in red territory. The market breadth indicating the overall health of the market remained positive as 1534 stocks closed in green while 1249 stocks closed in red and 72 stocks remained unchanged in BSE.

The BSE Sensex higher by 141.27 points or (0.90%) at 15,922.34 and NSE Nifty ended up by 44.15 points or (0.94%) at 4,732.35. BSE Mid Caps and Small Caps closed with gains of 41.20 and 54.70 points at 5,863.70 and 6,961.76 respectively. The BSE Sensex touched intraday high of 15,957.67 and intraday low of 15,663.35.

Gainers from the BSE Sensex pack are DLF Ltd (5.30%), JP Associates (5.18%), Bharti Airtel (4.39%), Hindalco (3.07%), Reliance Infra (2.51%), Herohonda Motors (2.25%), ICICI Bank (1.71%), HUL (1.60%), SBI (1.56%), Reliance (1.47%) and ACC Ltd (1.47%).

Losers from the BSE Sensex pack are Tata Power (1.36%), ITC Ltd (1.27%), Sun Pharma (0.96%), Wipro Ltd (0.77%), TCS Ltd (0.75%) and NTPC Ltd (0.71%).

On the global markets front, the Asian markets that opened before the Indian market, ended mixed. Nikkei 225, Singapore''s Straits Times Index, Seoul Composite closed and Taiwan Weighted closed higher by 60.17, 0.57, 8.61 and 119.11 points at 10,534.14, 2,642.80, 1,607.94 and 6,809.86 respectively. However, Shanghai Composite and Hang Seng lost 85.71 and 144.13 points at 2,860.69 and 20,098.62. Weakness in China''s stock markets continued to hurt sentiment on concerns that there could be large scale fund raising activity after Bank of China president Li Lihui said on Thursday that the bank may issue new shares to enhance its capital base.

European markets, which opened after the Indian market, are trading in green backed by positive earnings data and confidence in improving economic data. The UK GDP shrank by a smaller-than-expected. It has been revised up to a 0.7% decline in the second quarter, and a 5.6% year on year contraction, still the largest annual fall on record. In Frankfurt the DAX index is trading higher by 87.93 points at 5,558.26 and in London FTSE 100 is trading up by 55.75 points at 4,925.10.

The BSE Realty index closed higher by (3.79%) or 156.75 points at 4,288.94. Main gainers are Omaxe Ltd (9.25%), Unitech Ltd (5.71%), DLF Ltd (5.30%), Penland Ltd (4.60%) and Ackruti (3.%).

The BSE Auto index increased by (1.24%) or 71.48 points at 5,815.07. Gainers are Bajaj Auto (4.23%), Apollo Tyre (3.57%), Exide Industries (3.26%), Cummins Ind (2.96%) and Herohonda Motors (2.25%).

The BSE Capital Goods index ended up by (1.15%) or 151.47 points at 13,331.37 as Thermax Ltd (5.48%), Praj Industries (5.44%), Elecon Eng C (5.03%), Crompton Greaves (4.23%) and Jyoti Struct (3.36%) ended in green.

The BSE Bank index gained (1.12%) or 93.09 points at 8,403.71. Gainers are Oriental Bank (4.17%), IDBI Bank (2.92%), Punjab National Bank (2.53%), Bank of India (2.20%) and ICICI Bank (1.71%).

The BSE Oil & Gas index advanced by (1.09%) or 107.23 points at 9,944.84. Gainers are Cairn Ind (2.83%), Reliance Pet (1.59%), Reliance (1.47%) and IOC Ltd (0.76%).

The BSE Consumer Durable index dropped by (1.04%) or 34.62 points at 3,299.01. Lossers are Gitanjali GE (2.96%), Rajesh Export (2.70%), Videocon Ind (1.30%) and Titan Ind (1.15%).

J.B. Chemicals & Pharmaceuticals Ltd. gained 2.52% the company announced the receipt of US FDA Approval to its Abbreviated New Drug Application (ANDA) for Cotirizine HydrochJoride (anti-allergic) 5 rng and "10 mg. Tablets.

Reliance Communications went up by 0.76%. S Tel and the company’s subsidiary, Reliance Infratel have signed an end-to-end telecom infrastructure agreement for telecom towers, transmission for BTS sites and fibre backbone for intercity connectivity. Reliance Communications will execute this agreement through its tower subsidiary Reliance Infratel.

KEC International advanced by 9.26%. The company has won orders in the domestic and international space to the tune of Rs. 780 crores.

Valecha Engineering closed higher by 9.98%. The company has recently bagged new projects worth Rs 1.72 billion approximately which includes two road projects at Arunachal Pradesh worth Rs 790 million, construction of waste tank farm from Bhabha Atomic Research Centre, Trombay, Mumbai worth Rs 150 million, bridge work at Thane Mumbai worth Rs 460 million and bridge work at Indore worth Rs 320 million.

McNally Bharat Engineering Company Ltd is ended down by 4.81%. The company has received an order for Supply and Installation of Water Pre-Treatment Plant Package for Rihand Super Thermal Power Project, Stage II (2X 660MW) for NTPC Ltd for a value of Rs. 24.69 crores. The contractual period of completion is 28 months.

Wipro Ltd decreased by 0.77%. The company and Lavasa Corporation Ltd. announced their partnership for planning, implementing and managing Information & Communication Technology (ICT) services across Lavasa city. Lavasa is free India''s first and largest Hill City being developed by Lavasa Corporation Ltd, a part of HCC Group.