Post Session Commentary - Sep 14 2009

Breaking the past few days of rally session, the domestic market today took a sharp turn to close in red terrain on intense profit booking. However, market cut off losses towards closing on some buying in key stocks. Intense selling dragged the domestic bourses lower on the first trading day of the week. Weak cues from the markets all over the world weighed on the sentiments as European stocks are trading with huge losses and Asian markets closed in red. Depressing US index futures also took huge beating on the domestic bourses. Benchmark indices were in narrow range today on continuous bouts of buying and selling. Buying in PSU stocks along with Bank and Oil & Gas and Auto stocks restricted the losses to some extent. The BSE Sensex ended below 16,250 level and NSE Nifty closed around 4,800 mark.

The market tumbled since initial bell as the majority of Asian stocks were in negative terrain. Besides, the US stock markets snapped its six-day winning streak and closed lower on Friday, due to sharp drop in oil prices and profit-taking that offset an improvement in consumer confidence. There was moderate selling pressure across the broader level and session end choppy. Further, Indian benchmark indices continued to remain in pressure on sustained selling over the counters. After a range bound trading, market managed to minimize the losses during last trading hours though remained on negative zone. On the sectoral front, Consumer Durable, Realty, Teck and Capital Goods stocks witnessed most of the selling from these baskets. However, Auto, PSU, Bank and Oil & Gas stocks contributed to the buying attitude during the trading. 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 positive as 1472 stocks closed in green while 10310 stocks closed in red and 73 stocks remained unchanged in BSE.

The BSE Sensex closed lower by 50.11 points at 16,214.19 and NSE Nifty ended down by 20.95 points at 4,808.60. BSE Mid Caps and Small Caps closed with gains of 8.77 and 32.39 points at 5,930.38 and 7,133.36 respectively. The BSE Sensex touched intraday high of 16,252.18 and intraday low of 16,119.95.

Losers from the BSE Sensex pack are Sterlite Industries (3.55%), Hindalco (2.46%), Grasim Industries (2.01%), RCom (1.83%), DLF Ltd (1.67%), ONGC Ltd (1.26%), L&T Ltd (1.24%), ICICI Bank (1.21%), ITC Ltd (1.10%), ACC Ltd (0.82%), HDFC (0.72%), Infosys Tech (0.68%) and Bharti Airtel (0.58%).

Gainers from the BSE Sensex pack are Tata Steel (2.12%), Tata Motors (1.97%), SBI (1.95%), HUL (1.62%), M&M Ltd (1.44%), JP Associates (1.21%), Wipro Ltd (0.95%), Maruti Suzuki (0.56%) and Reliance Infra (0.32%).

On the global markets front, the Asian markets that opened before the Indian market, ended mostly lower. Japanese stocks plunged on concerns that the strengthened yen could put a knock in exporters'' earnings. Hang Seng, Nikkei 225, Singapore''s Straits Times Index and Seoul Composite closed down by 229.22, 242.27, 41.29 and 16.79 points at 20,932.20, 10,202.06, 2,639.74 and 1,634.91 respectively. However, Shanghai Composite gained 36.95 points at 3,026.74.

European markets, which opened after the Indian market, are trading in red. Shares are pulling back from 11-month highs, with banks and commodity stocks leading the fallers. In Paris the CAC 40 is lower by 48.42 points at 3,686.47, in Frankfurt DAX index is trading up by 75.07 points at 5,548.95 and in London FTSE 100 is trading higher 45.66 points at 4,965.81.

The BSE Consumer Durables index tumbled (1.06%) or 35.66 points at 3,338.58, as Rajesh Export (5.35%), Gitnajali GE (1.88%), Videocon Ind (1.46%), Titan Ind (0.34%) and Blue Star L (0.30%) closed in negative terrain.

The BSE Realty index closed down by (0.79%) or 33.34 points at 4,213.44. Losers are Housing Dev (3.57%), Orbit Co (2.50%), Unitech Ltd (2.22%), Sobha Dev (1.86%) and Anant Raj (1.82%).

The BSE Teck index ended lower by (0.55%) or 17.37 points 3,134.93. Losers are Deccan Chr (4.75%), UTV Software (4.11%), Tanla (2.42%), Zee News (1.84%). and Tata Tele (1.81%).

The BSE Capital Goods index dropped by (0.55%) or 72.96 points at 13,198.59. Losers are Jyoti Struct (3.15%), Praj Industries (1.71%), Thermax Ltd (1.62%), L&T Ltd (1.60%) and Alstom Proje (1.53%).

The BSE Auto index gained (1.04%) or 62.46 points 6,092.85 as Bharat Forge (6.93%), Cummins Indi (3.28%), Apollo Tyre (2.57%), Amtek Auto (1.99%) and Tata Motors (1.97%) ended in green.

The BSE PSU index closed up by (0.93%) or 80.05 points at 8,655.40. Main gainers are MMTC Ltd (6.62%), Indian Overseas Bank (5.55%), Bank of India (4.99%), Chennai Petr (3.43%) and IOC Ltd (3.17%).

Vertex Spinning Limited ended lower by 4.98%. It announced the company''s newest offering, the NARDHANA VERTEX INTEGRATED TEXTILES PARK at a high profile meet with the Nasik Industries and Manufacturers'' Association or NIMA, and the Association of Real Estate Consultants or AREC in Nasik.

Abhishek Inds ended up by 2.45%. The company in a first of its kind agreement, Abhishek Industries Ltd (AIL), the flagship company of the Trident Group has procured Direct License of Time Inc lifestyle publication, Southern Living and has obtained its brand rights for three years for its bath products comprising towel, mat and robe.

Oracle Financial Services Software gained 0.66%. The company announces new release of Oracled FLEXCUBE Universal Banking. New release will help the financial institutions to achieve the greater efficiency and ability, lower costs and streamline business processes.

Suven Life Sciences Ltd (Suven) went up by 4.99%. The company announced that the US Patent Office has issued two Patents: US 7,507,835 and US 7,388,024 corresponding to two New Chemical Entities (NCEs) for the treatment of disorders associated with Neurodegenerative diseases and these Patents are valid until 2022 & 2024 respectively.

Godrej Industries Ltd gained 2.22% on reports the company''''s unit Godrej Properties will launch an initial public offering in the next three months.

Kirloskar Oil Engines Ltd increased by 1.53% after 1.42 crore shares, or 7.31% equity, changed hands in a block deal on the BSE at Rs. 113 per share.

Punj Lloyd Ltd gained 1.05% after the company got an order worth Rs. 550 crore from Mangalore Refinery & Petrochemicals for construction related works.

Indian Oil Corporation Ltd rose 3.17% after the company''''s board approved issuing bonus shares in the ratio of 1:1.