Post Session Commentary - Sep 2 2009

Markets closed the today’s volatile session on a lackluster note after showing gains during the mid session on the back of far end profit booking across the selective indices. Stocks managed to gain ground after subdued opening on some buying sentiment. However, market pared most of its gains during last hours on weak cues from the global markets and lower US index futures. Investors selected to tread a cautious path due to lack of prominent triggers. The BSE Sensex ended below 15,600 level and NSE Nifty closed below 4,650 mark.

The market today extended its yesterday’s losses and opened on subdued note on the back of weak cues from the global markets. The Asian markets were lower today and the US stocks markets closed in red on Tuesday, on huge sell off led by worries about more bank failures and on belief that stocks are purchased in excess. Investors ignored some encouraging report on the manufacturing front, as the ISM manufacturing index increased to 52.9 in August from 48.9 in July. Besides, market also shrugged off another positive economic report, the sixth straight monthly increase in pending home sales in July. Further, Indian benchmark indices suddenly gained momentum and moved into green on some buying emerged at lower level. Going ahead, stocks turned volatile and continued to swing between positive and negative. Finally, market closed with losses as negative global markets weighed sentiments. From the sectoral front, Realty, Auto, Capital Goods, Power, Bank and Metal stocks witnessed most of the selling from these baskets. BSE Midcap and Smallcap stocks also remained under pressure. However, IT, Teck and Pharma stocks gained favour from the market.

Among the Sensex pack 21 stocks ended in red territory, 8 in green territory and 1 remained unchanged. The market breadth indicating the overall health of the market remained negative as 1601 stocks closed in red while 1163 stocks closed in green and 82 stocks remained unchanged in BSE.

The BSE Sensex closed lower by 83.73 points or (0.54%) at 15,467.46 and NSE Nifty ended down by 17 points or (0.37%)at 4,608.35. BSE Mid Caps and Small Caps closed with losses of 39.46 and 22.15 points at 5,758.03 and 6,869.02 respectively. The BSE Sensex touched intraday high of 15,628.10 and intraday low of 15,392.68.

Losers from the BSE Sensex pack are Sterlite Industries (3.16%), BHEL (2.65%), JP Associates (2.57%), Maruti Suzuki (2.27%), Bharti Airtel (2.13%), M&M Ltd (2.09%), Grasim Industries (1.44%), Tata Power (1.37%), NTPC Ltd (1.19%), DLF Ltd (1.18%), ICICI Bank (1.15%) and L&T Ltd (1.07%).

Gainers from the BSE Sensex pack are RCom (4.56%), HUL (2.01%), Herohonda Motors (1.40%), TCS Ltd (1.19%), Infosys Tech (1.05%) and sun Pharma (0.97%).

On the global markets front, the Asian markets that opened before the Indian market, ended mostly lower after a big fall on Wall Street. Japanese stocks dropped sharply with Elpida Memory Inc. falling on equity dilution concerns after it announced a fund-raising plan. Hang Seng, Nikkei 22, Singapore''s Straits Times Index and Seoul Composite closed down by 350.30, 249.60, 26.46 and 9.9 points at 19,522, 10,280.46, 2,569.93 and 1,613.16 respectively. However, Shanghai Composite gained 31.25 points at 2,714.94. Chinese stocks ended higher, spurred by gains in oil refiners after Beijing hiked fuel prices.

European markets, which opened after the Indian market, are trading in red on profit booking. In Frankfurt the DAX index is trading lower by 33.17 points at 5,294.12 and in London FTSE 100 is trading down 12.34 points at 4,807.36.

The BSE Realty index closed lower by (1.76%) or 75.38 points at 4,202.65. Losers are Housing Dev (4.03%), Indiabull Real (3.78%), Pheonix Mill (3.72%), Mahindra Life (3.53%) and Orbit Co (2.88%).

The BSE Auto index lost (1.36%) or 81.86 points at 5,940.58. Losers are Amtek Auto (5.05%), Bajaj Auto (4.09%), Exide Industries (3.65%), Cummins Indi (3.07%) and Maruti Suzuki (2.27%).

The BSE Capital Goods index dropped by (1.26%) or 163.55 points at 12,772.07. Losers are Praj Industries (3.10%), Everest Kanto (2.84%), BHEL (2.65%), Elecon Eng C (2.59%) and Usha Martin (2.56%).

The BSE Power index decreased by (1.08%) or 31.63 points at 2,910.61. Losers are BHEL (2.65%), Siemens Ltd (1.39%), Tata Power (1.37%), GVK Power (1.26%) and ABB Ltd (1.07%).

The BSE Bank index ended down by (0.61%) or 50.29 points at 8,228.20 as Bank of Baroda (2.53%), Federal Bank (1.79%), ICICI Bank (1.15%), Bank of India (1.14%) and Kotak Bank (1.11%) ended in red.

The BSE IT index closed up by (0.98%) or 41.08 points at 4,231.3 on better than expected economic data in the US. Weak rupee also supported the recovery. Main gainers are Aptech Ltd (6.67%), Oracle Fin (5.21%), HCL Tech (3.65%), Rolta Ind (1.31%) and TCS Ltd (1.19%).

Oracle Financial Services Software closed up by 5.21%. The company announces new Release of Oracle Mantas for Financial Crime Management. New Oracle Mantas Fraud Release Strengthens Fraud Detection to Help Financial Institutions Defend Against Increasingly Sophisticated and Globalized Financial Crime Schemes.

Ranbaxy ended higher by 1.03%. The company has received an order from the government for supplying Oseltamivir capsules, which is used in the treatment of Influenza A H1N1 (swine flu).

Vivimed Labs Ltd zoomed 4.97% after the firm bought back $12.5 million out of outstanding $15 million of foreign currency convertible bonds due for redemption in April 2012.

Herohonda Motors Ltd gained 1.40% on surge in sales in August 2009.

Strides Arcolab Ltd advanced 6.42% after the company received a large order to supply the generic version of Roche’s anti-viral, Tamiflu, used to treat the H1N1 flu.

Redington India Ltd zoomed 10.86% after a block deal of 22.19 lakh shares was executed on NSE at Rs. 250 per share.

Reliance Communication Ltd spurted 4.56% on reports the firm prepaid a term loan of Rs. 5,000 crore raised a year earlier that would help the company save Rs 700 crore in annual interest costs.

Pratibha Industries Ltd advanced 5.19% after the company secured a contract worth Rs. 406.06 crore.