Post Session Commentary - Sep 10 2009

Markets closed on flat note after showing a strong rally at the initial stage, on the back of far end profit booking across the selective indices. Instability was led by bouts buying and selling that was witnessed in key stocks. Market pared most of its gains during last hours and stocks touched the red zone during final trading on some profit booking led by recent rally in stocks. However, stocks were trading with good gain till before afternoon trade tracking upbeat sentiment from global markets. Meanwhile, inflation for the week ended 29th Aug 2009, came in at -0.12% as compared to -0.21% in the previous week. The BSE Sensex ended above 16,150 level and NSE Nifty closed above 4,800 mark.

Market opened with strong gains backed by favourable cues from the global markets. Gains in Asian stocks instigate the domestic bourses and on Wednesday, the US stock markets closed higher for fourth straight day with the S&P 500 touching an 11-month high. The market was lifted through most of the day by strength in commodities, industrials and technology. Further, Indian benchmark indices were constantly hovering in positive terrain on buying momentum. Firm opening of European stocks also contributed to the positive sentiments. However, market was unable to continue the same momentum and pared early gains. Knock of selling pressure in key stocks forced market to conclude its journey on flat note. On the sectoral front, Metal, Bank, Pharma, IT and Teck stocks were able to gain favour from the market. However, Realty, consumer Durable, Auto and Oil & Gas stocks witnessed most of the selling from these baskets. BSE Midcap and Smallcap stocks also followed the same trend.

Among the Sensex pack 16 stocks ended in red territory and 14 in green territory. The market breadth indicating the overall health of the market remained negative as 1710 stocks closed in red while 1093 stocks closed in green and 77 stocks remained unchanged in BSE.

The BSE Sensex closed marginally higher by 133.31 points at 16,216.86 and NSE Nifty ended slightly up by 5.15 points at 4,819.40. BSE Mid Caps and Small Caps closed with losses of 10.31 and 55.19 points at 5,929.50 and 7,128.19 respectively. The BSE Sensex touched intraday high of 16,434.77 and intraday low of 16,166.42.

Gainers from the BSE Sensex pack are ICICI Bank (3.12%), Sterlite Industries (2.51%), Tata Steel (2.27%), Infosys Tech (1.92%), Bharti Airtel (1.81%), Tata Motors (1.21%), BHEL (1.20%), RCom (1.19%), ITC Ltd (0.95%) and HDFC Bank (0.60%).

Losers from the BSE Sensex pack are DLF Ltd (2.77%), Heohonda Motors (2.45%), JP Associates (2.25%), Hindalco (2.05%), M&M Ltd (1.77%), Maruti Suzuki (1.44%), Reliance Infra (1.35%), Grasim Industries (1.35%), HDFC (1.32%) and HUL (1.28%).

Inflation for the week ended Aug 29 came in at -0.12% as compared to -0.21% in the previous week. WPI stood at 241.1 down 0.1%. Inflation remained in negative territory for 13th week. Inflation for the same week last year was up 12.3%. Rise in inflation is mainly driven by higher prices of essential food items like milk, cereals, pulses, fruit and vegetables.

On the global markets front, the Asian markets that opened before the Indian market, ended higher. Hang Seng, Nikkei 225, Singapore''s Straits Times Index and Seoul Composite closed up by 218.52, 201.53, 31.54 and 36.91 points at 21,069.56, 10,513.67, 2,682.02 and 1,644.68 respectively. However, Shanghai Composite lost 21.38 points at 2,924.88.

European markets, which opened after the Indian market, are now trading in red after showing positive trading during initial session. In Paris the CAC 40 is lower by 15.32 points at 2,692.37, in Frankfurt DAX index is trading down by 7.34 points at 2,566.92 and in London FTSE 100 is trading lower 21.99 points at 54,982.31.

The BSE Metal index closed up by (1.23%) or 163.82 points at 13,510.61, as Jindal Saw (7.05%), Sesa Goa Ltd (6.25%), Gujarat NRE C (5.74%), Hindustan Zinc (3.09%) and Sterlite Industries (2.51%) ended in positive terrain.

The BSE Bank index went up by (1.01%) or 87.84 points at 8,782.64. Gainers are ICICI Bank (3.12%), Union Bank (2.22%), Canara Bank (2.10%), Indiabn Overseas Bank (1.29%) and Yes Bank (1.12%).

The BSE Pharma index gained (0.82%) or 31.99 points 3,942.69 as Apollo Hos E (6.48%), Dr Reddy’s Lab (3.65%), Piramal Health (2.81%), Dishman Pharma (2.41%) and Lupin Ltd (1.87%) ended in green.

The BSE IT index ended higher by (0.82%) or 34.97 points 4,320.69. Gainers are Infosys Tech (1.92%), Wipro Ltd (0.35%) and HCL Tech (0.16%). Besides scrips that lost are Tech Mahindra (3.95%), Financ Tech (3.44%), Patni Computer (3.11%) and Mphasis Ltd (3.07%).

The BSE Realty index closed lower by (2.26%) or 99.92 points at 4,317.14. As Housing Dev (3.85%), Ansal Infra (2.98%), DLF Ltd (2.77%), Penland Ltd (2.62%) and Anant Raj (2.58%) closed in negative terrain.

The BSE Consumer Durables index dropped (1.58%) or 53.37 points at 3,314.83. Losers are Titan Ind (3.53%), Gitnajali GE (2.44%), Videocon Ind (1.71%) and Rajesh Export (0.25%).

Excel Infoways Ltd advanced by 0.20%. The company has entered into a business alliance with Business Processes Redefined. LLC (BPR), a US based receivables management firm to provide call centre and debt collection services.

L&T Ltd closed higher by 0.02%. The company has won a repeat order for design, manufacture and supply of four steam generators for 700 MWe Pressurized Heavy Water Reactors (PHWR) for Rajasthan Atomic Power Plant (RAPP) -7&8 from the Nuclear Power Corporation of India Limited (NPCIL).

UTV Ltd lost 0.69%. Bloomberg and the promoters (founders) of UTV announced that they will collaborate on a television channel to deliver unsurpassed real-time business, economic and political news to households across India.

EdServ Softsystems Ltd. dropped by 4.99%. The company, which has so far been providing academic and placement support services to the higher education segment, has announced that it is foraying into the primary and secondary education space.

IVRCL Infrastructures & Projects Limited decreased by 0.04%. The company has bagged orders from Government of Maharashrtra, NSG Kolkatta and others. The orders of Rs.557 Crores include orders in Water, Power, Buildings Divisions and a Road BOT.

Adlabs Films Limited ended down by 0.57%. The company and a member of the Reliance ADA group announced the reorganization of BIG Cinemas operations into two business strategic units based on geographical division.

Tata Communications lost 1.11 %. The company announced that it has extended its Ethernet service portfolio into China, with immediate availability.