Pre Session Commentary - Aug 27 2009

Today domestic markets are likely to open positive as Ministry of commerce will unveil today the new foreign trade policy named as “forward looking”. The new trade policy is likely to give special preference to textiles, handicrafts, leather and gems and jewellery, and also promote the growth of domestic exporters beyond the conventional US and European markets. The exports for the month of July had dipped by 26 per cent at $12.5 billion, compared with $17 billion in the corresponding month previous year. However the markets are already at its peak level and any lack of guidance from foreign markets would result in profit booking. The markets are likely to trade volatile.

On Wednesday, domestic markets closed marginally higher after a volatile session. Domestic market managed to extend its’ initial gains to end in a positive zone. Strong buying over the ground was contributed by positive Asian markets along with higher US index futures. Strong US economic data also added to the positive sentiments. However, stocks were little volatile ahead of the expiry of the August F&O series on Thursday, 27 August 2009. In addition, negative European markets constrained the upward journey of benchmark indices and domestic bourses came off the day’s high during mid session. In the meantime, profit booking was also witnessed following recent rally. The BSE Sensex ended above 15,750 level and NSE Nifty closed above 4,650 mark.

The BSE Sensex closed higher by 81.38 points at 15,769.85 and NSE Nifty ended up by 21.50 points at 4,680.85. BSE Mid Caps and Small Caps closed with gains of 63.02 and 133.11 points at 5,800.55 and 6,878.35 respectively. The BSE Sensex touched intraday high of 15,831.49 and intraday low of 15,695.94.

On Wednesday, US stock markets closed higher. Despite better than expected economic data market participants hardly reacted. There was lack of buying sentiments across the broader level. Annualized new home sales for July hit 433,000 units, which is well above the 390,000 that had been expected. What''s more, the 9.6% month-over-month increase for July is the sharpest rise since 2005. That helped bring inventory down to a 7.5 month supply from an 8.5 month supply. Durable goods orders made their sharpest increase in two years by spiking 4.9% in July. Economists had called for a 3.0% increase. US light crude oil futures for October delivery closed at $71.38 per barrel down by 1% on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed higher by 4.23 points at 9,543.52, NASDAQ index inclined by 0.20 points to 2,024.43 and the S&P 500 (SPX) closed high by 0.12 points at 1,028.12.

Indain ADR''s ended mixed on Wednesday. In the IT space Infosys was up 2.62%, Wipro was up 2.16%, Satyam was up 0.92% but Patni was down 0.27%. In the Banking space, HDFC Bank was down 1.10% and ICICI Bank was down 0.06%. In the telecom space, MTNL was up 0.51% and Tata Comm was up 1.58%. In the other space Dr Reddys was 1.89%, Tata Motors was up 1% and Sterlite was up 5.08%.

The FIIs on Wednesday stood as net sellers in equity and debt. Gross equity purchased stood at Rs 2,039.30 Crore and gross debt purchased stood at Rs 159.10 Crore, while the gross equity sold stood at Rs 2,092.90 Crore and gross debt sold stood at Rs 504.40 Crore. Therefore, the net investment of equity and debt reported were Rs (53.60) Crore and Rs (345.40) Crore respectively.

On Wednesday, Indian Rupee closed at 48.93/94 per dollar, 0.4 per cent weaker as compared to its previous close at 48.75/76. The intense demand for green back by oil importers pulled the domestic currency.

On BSE, total number of shares traded were 63.15 Crore and total turnover stood at Rs 6,917.58 Crore. On NSE, total number of shares traded were 106.29 Crore and total turnover was Rs 19,520.98 Crore.

Top traded volumes on NSE Nifty – Suzlon Energy with total volume traded 45169487 shares, followed by Unitech with 40840724, DLF with 10327096, Hindalco with 8131129 and Tata Motors with 7415023 shares.

On NSE Future and Options, total number of contracts traded in index futures was 725288 with a total turnover of Rs 16,401.46 Crore. Along with this total number of contracts traded in stock futures were 926878 with a total turnover of Rs 29,670.69 crore. Total numbers of contracts for index options were 1281564 with a total turnover of Rs 29,898.59 Crore and total numbers of contracts for stock options were 65896 and notional turnover was Rs 2,106.96 Crore.

Today, Nifty would have a support at 4,590 and resistance at 4,720 and BSE Sensex has support at 15,612 and resistance at 15,890