Post Session Commentary - Sep 11 2009

The domestic market today took a turn after upbeat opening, to close with slight gain due to profit booking after rally in past few days. The market was extremely volatile and was constantly hovering between positive and negative terrain on continuous bouts of buying and selling. Benchmark indices overlooked the positive global cues and industrial output data that came as per expectations. India’s industrial production witnessed rise for the 7th straight month, as it grew 6.8% during July 2009, as compared to 6.4% in the corresponding month last year. The BSE Sensex ended above 16,200 level and NSE Nifty closed above 4,800 mark.

The market opened on positive note tracking favorable cues from the global markets. The US markets ended higher for fifth successive session on Thursday. The market touched new 2009 highs after jobless claims slid to the lowest level since July and on encouraging comments from Treasury Secretary Geithner. However, Indian market erased some of gains and suddenly turned volatile after start. Further, stocks continued to trade in range bound manner amid volatility. IIP data for July that grew by 6.8% was unable to bring much respite, as investors booked profits ahead of the weekend after reporting good gains in previous sessions. During the last hour of trading, market managed to gain some ground to end the day marginally above the dotted line. On the sectoral front, most of the buying was seen in Consumer Durable, Bank, PSU, IT and Teck stocks. However, Realty, FMCG, Auto and Oil & Gas stocks were unable to gain favour from the market. BSE Midcap and Smallcap stocks also witnessed selling pressure during the trading.

Among the Sensex pack 20 stocks ended in red territory and 10 in green territory. The market breadth indicating the overall health of the market remained negative as 1717 stocks closed in red while 1070 stocks closed in green and 80 stocks remained unchanged in BSE.

The BSE Sensex closed marginally higher by 47.44 points at 16,264.30 and NSE Nifty ended slightly up by 10.15 points at 4,829.55. BSE Mid Caps and Small Caps closed with losses of 7.89 and 26.92 points at 5,921.61 and 7,101.27 respectively. The BSE Sensex touched intraday high of 16,337.98 and intraday low of 16,130.32.

Gainers from the BSE Sensex pack are Hindalco (5.98%), ICICI Bank (2.47%), SBI (2.10%), L&T Ltd (1.65%), M&M Ltd (1.77%), Wipro Ltd (1.53%), Infosys Tech (1.38%), Bahrti Airtel (1.10%), HDFC (1.05%) and TCS Ltd (0.58%).

Losers from the BSE Sensex pack are Sterlite Industries (2.71%), DLF Ltd (2.47%), HUL (2.33%), Tata Motors (2.26%), ACC Ltd (2.13%), JP Associates (1.96%), RCom (1.68%), Maruti Suzuki (1.56%), Herohonda Motors (1.53%), Grasim Industries (1.18%), Tata Power (0.91%) and ITC Ltd (0.85%).

India’s industrial production witnessed rise for the 7th straight month in July as compared to a year earlier levels but decelerated sequentially. It grew 6.8% during July 2009, as compared to 6.4% in the corresponding month last year. Meanwhile, the industrial production for the month of June was revised from7.8 % to 8.2%. The manufacturing sector rose 6.8% as against 6.9% last year. Mining growth at 9.9% as against 2.8% last year. Capital goods growth at 2% as against 17.9% last year and consumer goods growth at 8.8% as against 5.9%.

On the global markets front, the Asian markets that opened before the Indian market, ended mostly higher. Shanghai Composite, Hang Seng and Seoul Composite closed up by 64.91, 91.86 and 7.02 points at 2,989.79, 21,161.42 and 1,651.7 respectively. However, Nikkei 225 and Singapore''s Straits Times Index lost 69.34 and 0.99 points at 10,444.33 and 2,681.03 respectively.

European markets, which opened after the Indian market, are trading in green. In Paris the CAC 40 is higher by 33.79 points at 3,739.66, in Frankfurt DAX index is trading up by 36.90 points at 5,631.67 and in London FTSE 100 is trading higher 36.91 points at 5,024.59.

The BSE Consumer Durables index advanced (1.79%) or 59.41 points at 3,374.24, as Rajesh Export (5.48%), Gitnajali GE (1.97%), Titan Ind (1.86%), Blue Star L (1.60%) and Videocon Ind (0.62%) closed in positive terrain.

The BSE PSU index closed up by (1.52%) or 127.98 points at 8,575.35. Main gainers are MMTC Ltd (20%), Central Bank (10.16%), Vijaya Bank (6.57%), Allahabad Bank (6.11%) and Dena Bank (5.82%).

The BSE Bank index went up by (1.47%) or 128.8 points at 8,911.44 on hopes that a recovery in the economy will boost lending growth. Gainers are Indus Ind Bank (6.43%), Allahabad Bank (6.11%), Indian Overseas Bank (4.64%), Federal Bank (2.78%) and ICICI Bank (2.47%).

The BSE IT index ended higher by (1.11%) or 48.04 points 4,3268.73. Gainers are Mphasis Ltd (2.40%), Wipro Ltd (1.53%), Infosys Tech (1.38%), HCL Tech (0.99%). and Financ Tech (0.72%).

The BSE Realty index closed lower by (1.63%) or 70.36 points at 4,246.78. Losers are Sobha Dev (3.57%), Penland Ltd (3.37%), DLF Ltd (2.47%), Orbit Co (2.31%) and Ansal Infra (2.20%).

The BSE FMCG index lost (1.18%) or 30.05 points 2,511.95 as Dabur India Ltd (2.50%), HUL (2.33%), Marico Ltd (1.69%), United Brew (1.49%), Tata Tea Ltd (1.28%) and Godrej Cons (1.08%) ended in red.

Omaxe Ltd gained 1.82%, The company will develop a Hi-tech Township in NCR adjoining Greater Noida in Buladshahar, Uttar Pradesh, through its subsidiary. Omaxe''s subsidiary M/s Rivaj Infratech Pvt. Ltd has signed an MoU with Bulandshahar Development Authority for the development of the Hi-Tech Township.

Oracle Financial ended up by 0.61%. TAIB Bank, a leading private investment bank in Bahrain, has implemented Oracle Reveleus Basel II and Oracle Reveleus Asset Liability Management to support its company-wide risk and compliance efforts, Oracle Financial Services Software announced.

Biocon Limited increased by 0.56% after the company signed a pact with US-based Amylin Pharmaceuticals Inc to jointly develop a novel peptide hybird.

Patni Computer Systems Ltd improved 0.59% after a block deal of two lakh shares was executed on NSE at Rs. 404.60 per share.

Amtek Auto Limited closed lower by 6.34%. The company has, on September 11, 2009 priced a proposed Foreign Currency Convertible Bonds ("FCCBs") issuance for an amount of US$65 million with an option to upsize the issue for an additional amount of US$ 110 million.

Sterlite Industries India Ltd shrunk 2.71% after the company raised its open offer price for bankrupt US copper miner Asarco by a fifth to $2.56 billion.