Post Session Commentary - Aug 5 2009

The Indian market rallied sharply during final trading and ended on positive zone led by good buying in key stocks. However, stocks were volatile during the trading and constant buying and selling contributed to the zigzag movement. Negative Asian markets along lower US index futures also contributed to the instability on the domestic bourses. Meanwhile, benchmark indices finally made a smart comeback and edged up on gains in European market. In addition, constant buying by foreign funds and hopes of economic recovery in India also lifted the investor’s attitude. The BSE Sensex ended around 15,900 level and NSE Nifty closed above 4,650 mark.

Market opened on pleasant note tracking some positive cues from the US markets. The US stocks markets closed higher on Tuesday after strong increase in pending home sales and considerable strength in the financial sector has led the markets to gained momentum in the late trade. However, Indian stocks turned weak in line with weak Asian markets as Japanese automakers fell on Toyota''s big loss. Further, market continued to trade with negative bias amid instability. During last trading hours, benchmark indices managed to move into green on upward movement in key stocks. Finally, market closed with good gains in line with positive European markets that contributed to the bounce back in the market movement. From the sectoral front, most of the buying was seen in Consumer Durables, Oil & Gas, IT, Teck and PSU stocks. BSE Midcap and Smallcap indices also remained in buyer’s radar. However, Realty, Auto and FMCG stocks witnessed most of the selling from these baskets.

Among the Sensex pack 17 stocks ended in red territory and 13 in green. The market breadth indicating the overall health of the market remained positive as 1611 stocks closed in green while 1062 stocks closed in red and 94 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 72.85 points or (0.46%) at 15,903.83 and NSE Nifty ended up by 13.65 points or (0.29%) at 4,694.15. BSE Mid Caps and Small Caps closed with gains of 6.60 and 63.43 points at 5,695.33 and 6,397.38 respectively. The BSE Sensex touched intraday high of 15,973.10 and intraday low of 15,695.11.

Gainers from the BSE Sensex pack are ONGC Ltd (4.50%), Reliance Infra (2.78%), Wipro Ltd (3.25%), ACC Ltd (2.74%), Infosys Tech (2.49%), Sun Pharma (2.01%), Reliance Infra (1.98%), Reliance (1.67%), Graqsim Industries (1.56%), Tata Motors (1.46%), Sterlite Industries (1.39%) and ICICI Bank (1.28%).

Losers from the BSE Sensex pack are Maruti Suzuki (3.10%), Hindalco (1.86%), DLF Ltd (1.74%), HDFC Bank (1.54%), HUL (1.29%), HDFC (1.22%), RCom (1.01%), ITC Ltd (0.92%), BHEL (0.88%) and Herohonda Motors (0.80%).

On the global markets front the Asian markets that opened before the Indian market, ended in red as Japanese automakers fell on Toyota''s big loss. In addition, investors waited for a U.S. employment report to make it clear that how quickly the world''s biggest economy can recover. Shanghai Composite, Hang Seng, Nikkei 225, Straits Times and Seoul Composite ended up by 42.94, 301.66, 122.48, 41.93 and 6.9 points at 3,248.50, 20,494.77, 10,252.53, 2,606.83 and 1,59.47 respectively. However, Hang Seng and Straits Times lost 10.83 and 32.88 points at 20,796.43 and 1,566.37 respectively.

European markets, which opened after the Indian market, are trading in green. In Frankfurt the DAX index is trading up by 6.63 points at 5,423.65 and in London FTSE 100 is trading up by 14.96 points at 4,686.33.

The BSE Consumer Durable index advanced by (2.11%) or 66.28 points at 3,204.17. Gainers are Rajesh Export (6.55%), Videocon Ind (5.67%), Blue Star L (1.71%) and Gitanjali GE (0.61%).

The BSE Oil & Gas index gained (1.95%) or 188.68 points at 9,885.45. Main gainers are ONGC Ltd (4.50%), Aban Offshore (2.56%), BPCL (2.35%), Reliance Pet (1.89%) and Reliance (1.67%).

The BSE IT index closed higher by (1.94%) or 76.86 points at 4,034.23 on better than expected data on US home sales reinforced expectations that the economy is recovering. Gainers are NIIT Ltd (7.61%), Moser Bayer (6.55%), Finance Tech (3.90%), Wipro Ltd (3.25%) and Infosys Tech (2.49%).

The BSE Teck index ended up by (1.19%) or 34.77 points at 2,957.67. As HT Media NDTV Ltd (12.22%), (11.25%), Him Futr Com (9.94%), NIIT Ltd (7.61%) and Moser Bayer (6.55%) ended in green.

The BSE Realty index lost (1.92%) or 77.27 points at 3,946.28 on profit taking after recent strong rally. Losers are Indiabull Real (3.77%), Anant Raj (2.38%), Penland Ltd (2.22%), Housing Dev (1.96%) and Pheonix Mill (1.96%).

The BSE Auto index dropped by (1.11%) or 66.72 points at 5,940.11. Scrips that lost are Maruti Suzuki (3.10%), Bajaj Auto (2.30%), Apollo Tyre (1.52%), Exide Indus (1.42%) and Ashok Leyland (1.23%).

Reliance Infrastructure Limited gained 1.98%. The company, in consortium with SNC Lavolin Inc. Canada and Reliance Communication has been awarded Mumbai Metro-II Project on BOT basis for a concession period of 35 years with an extension clause of another 10 years.

Allied Digital Services Ltd advanced by 1.60%. the company, which is a leading Indian, Enterprise IT infrastructure management services provider has announced the launch of Cloud Computing Management and Security Services for large enterprises and hosting service providers globally.

Dr. Reddy''s Laboratories Ltd. went up by 0.74%. The company has launched Finrid (Fentanyl Trarsdermal Patch) in India. Used in the management of severe to moderate pain, Finrid provides continuous systemic delivery of Fentanyl, a potent opioid analgesic for upto 72 hours. It is the first opioid transdermal patch to be developed in India.

NMDC Ltd gusted 4.99% on reports the steel ministry has approved selling 8.38% in NMDC, which could fetch up to Rs. 12,000 crore for the government.

Jayshree Chemicals Ltd advanced 1.96% after the company''s board approved raising funds up to Rs. 40 crore by issuing equity shares on a rights basis.

Larsen & Toubuo Limited dropped by 0.31%. the company has secured Rs. 364 Cr order from UP Rajya Vidyut Utpadam Nigam (UPRVUNL) Limited during the first quarter of FY 09-10 for setting up Coal Handling Plant at Anpara, UP and another contract for Rs 489 Cr from Neyveli Lignite Corporation Limited (NLC) for setting up Coal Handling Plant at Tuticorin, Tamil Nadu.

Axis Bank Ltd plunged 4.83% after the lender decided to raise funds through global depositary receipts or by placement with institutions and promoters.

ING Vysya Bank Ltd slump 3.07% after ten lakh shares changed hands in two block deals on BSE and NSE combined.

Hindustan Construction Company Ltd fell 11%. The company bagged an order worth Rs 228.79 crore.