Post Session Commentary - Aug 3 2009

Indian market ended the highly unstable session with smart gains on positive cues from European markets along with higher US index futures. Asian markets also contributed to the recovery during the trading as surveys showed that Chinese factory growth is accelerating in July 2009, for the fourth consecutive month, rising to 52.8, up from 51.8 in June 2009. Market touched the day’s high during the final trading hours on hopeful sentiments led by strong corporate results and encouraging economic data from across the globe. However, earlier during the trading, domestic bourses were unable to sustain in either direction on continuous bouts of buying and selling. The BSE Sensex ended above 15,900 level and NSE Nifty closed above 4,700 mark.

Market opened on upbeat note tracking other Asian markets. However, the US stocks markets ended in mixed on Friday after government report showed softness in consumer spending. The major indices remained in green for most of the session and settled near the unchanged mark after the Q2 GDP showed a less than expected contraction. Further, Indian benchmark turned volatile soon after start on some profit booking at higher level. Market continued to swing between positive and negative terrain till afternoon trade. A government data that showed fall in exports by 27.7% in June, weigh on sentiments. However, stocks managed to recover and witnessed firm trade with higher European markets and firm US index futures. Market reported sharp gains during last trading hours to close near day’s high. From the sectoral front, Auto, Realty, Metal, Power, Oil & Gas, Capital Goods and Pharma stocks contributed to the positive sentiments. Good buying was also seen in BSE Mid Cap and BSE Small Cap indices. However, Consumer Durables and FMCG stocks observed most of the selling from these baskets.

Among the Sensex pack 26 stocks ended in green territory and 4 in red. The market breadth indicating the overall health of the market remained positive as 1761 stocks closed in green while 953 stocks closed in red and 71 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 253.92 points or (1.62%) at 15,924.23 and NSE Nifty ended up by 74.95 points or (1.62%) at 4,711.40. BSE Mid Caps and Small Caps closed with gains 131.56 and 107.95 points at 5,702.58 and 6,313.78 respectively. The BSE Sensex touched intraday high of 15,963.36 and intraday low of 15,608.40.

Gainers from the BSE Sensex pack are Hindalco (7.98%), M&M Ltd (6.88%), RCom (5.17%), BHEL (5.15%), Tata Steel (4.52%), Grasim Power (4.31%), JP Associates (4.05%), Maruti Suzuki (3.98%), Sterlitye Industries (3.90%), Reliance (2.96%), DLF Ltd (2.40%), Tata Motors (2.30%), ICICI Bank (1.89%), Grasim Industries (1.82%), SBI (1.79%), Reliance Infra (1.47%) and ACC Ltd (1.09%).

Losers from the BSE Sensex pack are HUL (2.25%), ITC Ltd (0.70%), HDFC Bank (0.39%) and HDFC (0.17%).

On the global markets front the Asian markets that opened before the Indian market, ended mostly higher on signs of a lift up in Chinese economic activity. Two surveys showed that Chinese factory growth accelerating in July on a revived domestic economy and slight pick-up in demand for its exports. Shanghai Composite, Hang Seng, Straits Times and Seoul Composite ended up by 50.23, 233.93, 22.44 and 7.69 points at 3,462.59, 20,807.26, 2,681.64 and 1,564.98 respectively. However, Nikkei 225 lost 4.36 points at 10,352.47.

European markets, which opened after the Indian market, are trading in green. In Frankfurt the DAX index is trading up by 90.34 points at 5,422.48 in London FTSE 100 is trading higher by 77.01 points at 4,685.37.

The BSE Auto index advanced by (4.60%) or 262.77 points at 5,976.45. Bharat Forge (18.53%), Amtek Auto (17.95%), Cummins Indi (8.27%), M&M Ltd (6.88%) and Bajaj Auto (6.52%) closed in positive territory.

The BSE Realty index gained (4.19%) or 163.72 points at 4,072.49. Main gainers are Pheonix Mill (9.64%), Mahindra Life (9.17%), Anant Raj (8.04%), Indiabull Real (6.35%) and Penland Ltd (6.32%).

The BSE Metal index ended up by (3.41%) or 422.76 points at 12,818.02. Scrips that gained are Hindalco (7.98%), JSW Steel (6.84%), Hindustan Zinc (6.70%), Nalco (5.11%) and Jindal Saw (4.69%).

The BSE Power index ended higher by (2.19%) or 65.17 points at 3,035.63. As BHEL (5.15%), Tata Power (4.31%), Torrent Power (3.65%), ABB Ltd (3.61%) and Lanco Infra (2.41%) ended in green.

The BSE Oil & Gas index closed higher by (2.04%) or 192.99 points at 9,673.08. Gainers are Aban Offshore (9.74%), Cairn Ind (3.39%), Reliance Pet (2.96%), Reliance (2.96%) and ONGC Ltd (1%).

The BSE Consumer Durable index dropped by (0.80%) or 24.88 points at 3,094.21. Losers are Blue Star L (2.49%) and Titan Ind (0.71%). However, gainers from the index are Gitanjali GE (5.42%), Rajesh Export (1.83%) and Videocon Ind (0.50%).

L&T ended up by 0.85%. The company has won two major offshore platform contracts from the Oil & Natural Gas Corporation aggregating over Rs 5300 crores (US$ 1.18 billion). The Company secured a turnkey order for the Mumbai High North (MHN) process platform & living quarters project, with an additional order for supply of three process gas compression modules to be installed in the same complex. The projects will be completed within 33 months.

Bharti Airtel gained 0.13%. The company had entered into an exclusivity agreement regarding the potential transaction until July 31, 2009. As discussions between the parties regarding the potential transaction are continuing, both parties have agreed to extend the exclusivity period up to August 31, 2009.

Jaiprakash Associates Ltd (JAL) advanced by 4.05%. The company disclosed plan to make an investment of Rs. 1,050 crore for setting up a greenfield cement plant in Assam. The project would be a joint venture one with Assam Mineral Development Corporation (AMDC), Assam''s government undertaking. The plant''s total production capacity would be 2 million tonnes.

Aurobindo Pharma Ltd spurted 6.96% after consolidated net profit increased incredibly 911.2% to Rs. 166.45 crore in Q1 June 2009 as against Q1 June 2008.

Reliance Communication Ltd advanced by 5.17% after net profit improved 6.5% to Rs. 370 crore on a 5.4% decline in sales to Rs. 3,006.13 crore in Q1 June 2009 as against Q1 June 2008.

Sanghi Industries Ltd zoomed 14.40% after net profit increased phenomenally 157.3% to Rs 18.94 crore in Q1 June 2009 as against Q1 June 2008.

Divi''s Laboratories Ltd sunk 4.57% after consolidated net profit plunged 95.5% to Rs. 4.29 crore in Q1 June 2009 as against Q1 June 2008.