Post Session Commentary - Sep 15 2009

Indian market surged during the session to close sharply higher on significant buying support led by reports of higher advance tax payment by some top Indian firms. Meanwhile, global cues are mixed today and US index futures are skipping up and down. Further, stocks raised also on a survey showing an improvement in business confidence in India. The National Council of Applied Economic Research (NCAER) said on 14 September 2009 that NCAER''s business confidence index jumped to 118.6 points in the June 2009 quarter, which is 37 points up from previous quarter, when it was at its the lowest level since February 1998. The BSE Sensex ended above16,450 level and NSE Nifty closed around 4,900 mark.

The market opened today on pleasant note following positive opening of Asian stocks. Besides, the US markets closed higher on Monday with the S&P 500 closed at the highest level in almost a year backed by final drive in the closing hours of trade. Further, Indian benchmark indices continued their northward journey on huge buying over the counters. On the other hand, a statement by finance minister Pranab Mukherjee on 14 September 2009, that late monsoon rains have eased drought conditions in India, also lifted the sentiments. Markets extended their gains to close near day’s high, despite negative trading in European stocks. On the sectoral front, traders on-loaded positions across the sectors. Besides, huge buying was witnessed in Realty, Metal, Auto, Bank, Consumer Durable, Capital Good and Power stocks. Mid Cap and Small Cap stocks also continued to hold gains during the trading.

Among the Sensex pack 27 stocks ended in green territory and 3 in red territory. The market breadth indicating the overall health of the market remained positive as 1801 stocks closed in green while 994 stocks closed in red and 78 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 240.26 points or (1.48%) at 16,456.45 and NSE Nifty ended up by 83.50 points or (1.74%) at 4,892.10. BSE Mid Caps and Small Caps closed with gains of 108.69 and 95.02 points at 6,039.07 and 7,228.68 respectively. The BSE Sensex touched intraday high of 16,477.23 and intraday low of 16,255.42.

Gainers from the BSE Sensex pack are DLF Ltd (5.20%), Herohonda Motors (3.47%), Sterltie Industries (3.34%), Hindalco (3.30%), JP Associates (2.92%), RCom (2.80%), SBI (2.71%), Reliance Infra ( 2.65%), Tata Steel (2.54%), HDFC (2.12%), ICICI Bank (2.03%), ITC Ltd (1.94%), TCS Ltd (1.92%), Reliance (1.55%), Maruti Suzuki (1.44%) and L&T Ltd (1.35%).

Losers from the BSE Sensex pack are ONGC Ltd (0.93%), Bharti Airtel (0.80%) and HUL (0.31%).

Advance tax collection spurted in the second quarter of the financial year indicating expectations of profit for the second quarter. Public sector lender, State Bank of India (SBI) has paid Rs 1,832 crore during the September quarter of 2009-10 as against Rs 1,068 crore in the corresponding period previous year. Other public sector banks like Bank of India paid Rs 470 crore as against Rs 230 crore, Bank of Baroda paid Rs 412 crore compared to Rs 255 crore and Central Bank of India paid Rs 73 crore respectively. Private sector lender Yes Bank paid Rs 58 crore as against Rs 33 crore in the corresponding period last year.

On the global markets front, the Asian markets that opened before the Indian market, ended mixed. Shanghai Composite, Nikkei 225 and Seoul Composite closed up by 6.99, 15.56 and 18.49 points at 3,033.73, 10,217.62 and 1,653.4 respectively. However, Hang Seng and Singapore''s Straits Times Index lost 65.83 and 1.34 points at 20,866.37 and 2,638.40 respectively.

European markets, which opened after the Indian market, are trading in red. In Paris the CAC 40 is lower by 0.92 points at 3,729.69, in Frankfurt DAX index is trading down by 24.53 points at 5,595.71 and in London FTSE 100 is trading lower 16.70 points at 5,002.15.

The BSE Realty index closed higher by (3.91%) or 164.67 points at 4,378.11. Gainers are Sobha Dev (7.09%), DLF Ltd (5.20%), Unitech Ltd (5.11%), Anant Raj (4.15%) and Parsvnath (3.03%).

The BSE Metal index ended up by (3.74%) or 502.01 points 13,843.40. Gainers are Jindal Steel (7.67%), Sesa Goa Ltd (6.58%), Gujarat NRE C (2.40%), Sterlite Industries (3.34%) and Hindalco (3.30%).

The BSE Bank index advanced by (2.5%) or 223.57 points at 9,178.91. Main gainers are Bank of India (8.88%), IDBI Bank (6.66%), Indian Overseas Bank (5.86%), Allahabad Bank (5.83%) and Canara Bank (5.57%).

The BSE Auto index gained (2.33%) or 142.09 points 6,234.94 on expectation of strong sales in the upcoming festive season. Cummins Indi (8.02%), Bajaj Auto (7.87%), Apollo Tyre (5.13%), Herohonda Motors (3.47%) and Escorts Ltd (3.02%) ended in green.

The BSE Capital Goods index gained (1.49%) or 196.47 points at 13,395.06. Gainers are Areva (9.71%), Lakshmi MA W (6.72%), Praj Industries (5.36%), Siemens Ltd (3.08%) and Suzlon Energy (2.89%).

The BSE Power index increased by (1.43%) or 42.29 points at 2,998.92, as Crompton Greaves (3.33%), Siemens Ltd (3.08%), Lanco Infra (3.02%), Suzlon Energy (2.89%) and Reliance Infra (2.65%) closed in positive terrain.

Cranes Software advanced 3.52%. The company announced the release of the latest version of its leading Finite Element Analysis software, NISA Version 17, today. This significantly improved version offers an enhanced DISPLAY IV, NISA''s powerful interactive graphics Pre and Post-processor.

GAIL India went up by 1.96%. The company and Kerala State Industrial Development Corporation Limited (KSIDC), Government of Kerala signed a Memorandum of Understanding for Natural Gas Infrastructure and City Gas Distribution in Thiruvananthpurarn yesterday.

Patni Computer Systems closed higher by 5.06%. The company announced that it has collaborated with leading UK charity Get Connected to build a new online directory service, ''''Webhelp 24/7'''', that will help young people find solutions to a wide range of issues, from coping with mental illness to learning disabilities.

Jindal Steel & Power Ltd spurted 7.67% on reports Jindal Power, a unit of the company, is planning a Rs. 4,000 crore initial public offering to raise funds for an upcoming 2,400 megawatt superthermal power project in Chattisgarh.

Punj Lloyd Ltd improved 1.98% after a block deal of four lakh shares was executed on BSE at Rs 264.25 per share.

Omaxe Ltd gained 0.29% after its unit Garv Buildtech signed a pact with Lucknow Development Authority to develop a hi-tech township in Lucknow, Uttar Pradesh.

Areva T&D India Ltd zoomed 9.71% after the company won an order worth Rs 76 crore.

Bartronics India Ltd gained 0.76% after an overseas unit of the company secured an order for an undisclosed sum.