Post Session Commentary - Sep 25 2009

The Indian market ended today’s volatile session below the dotted line as investors took calculative steps ahead of the long weekend. The market will remain close on Monday, 28th September 2009, for public holiday. However market tried to recover during afternoon trade and reduced losses, which were led by unfavorable global cues on Federal Reserve’s announcement regarding plans to start unwinding some stimulus measures. Zigzag movement was contributed by constant buying and selling witnessed in key stocks. Weak Asian stocks also contributed to the instability on the domestic bourses. The BSE Sensex ended around 16,700 level and NSE Nifty closed below 4,970 mark.

The domestic market opened on negative note tracking weak cues from the global markets. Asian stocks were lower and US stock market ended down on Thursday on weak home sales data and on Federal Reserve’s announcement regarding plans to start unwinding some stimulus measures. Further a sharp rise in dollar led selling pressure in commodities that in turn weighed heavily on materials stocks. However, market exhibited firmness in early trade after weekly jobless claims fell unexpectedly to two-month low, but the gains were short-lived. Further, Indian benchmark indices managed to recover from early lows on some buying at lower level. During afternoon session market gathered decent momentum to touch the positive zone for a short while on a little buying sentiment. However, stocks once again slipped into red to close with losses. From the sectoral front, most of the selling was seen in Metal, IT, Teck, Bank and Auto stocks. However, Pharma, Consumer Durable and Oil & Gas stocks remained in limelight as witnessed most of the buying from these baskets. BSE Mid Caps and Small Caps stocks also reported rise.

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 positive as 1628 stocks closed in green while 1137 stocks closed in red and 90 stocks remained unchanged in BSE.

The BSE Sensex closed lower by 88.43 or (0.53%) points at 16,693 and NSE Nifty ended down by 27.60 points or (0.55%) at 4,958.95. BSE Mid Caps and Small Caps closed with gains of 40.42 and 67.48 points at 6,226.93 and 7,450.25 respectively. The BSE Sensex touched intraday high of 16,812.02 and intraday low of 16,613.22.

Losers from the BSE Sensex pack are Tata Steel (2.85%), ICICI Bank (2.50%), TCS Ltd (2.06%), Tata Power (2.05%), Wipro Ltd (2.04%), Hindalco (1.82%), Infosys Tech (1.74%), Tata Motors (1.65%), Sterlite Industries (1.53%), M&M Ltd (1.30%) and Bharti Airtel (1.17%).

Gainers from the BSE Sensex pack are Sun Pharma (7.04%), Reliance (1.21%), ITC Ltd (1.01%), ONGC Ltd (0.75%), DLF Ltd (0.51%), Maruti Suzuki (0.47%) and HDFC (0.28%).

On the global markets front, the Asian markets that opened before the Indian market, ended lower tracking Wall Street losses overnight. Meanwhile, leaders of the world''s 20 largest economies assembled in the U.S. to find ways to foster a healthy economic recovery. Shanghai Composite, Hang Seng, Nikkei 225, Singapore''s Straits and Seoul Composite ended lower by 14.71, 26.33, 278.24, 4.61 and 2.4 points at 2,838.84, 21,024.40, 10,265.98, 2,662.82 and 1,691.48 respectively.

European markets, which opened after the Indian market, are trading mostly down. In Paris the CAC 40 is lower 3.38 points at 3,754.98, in Frankfurt DAX index is trading down 8.23 points at 5,596.98 whereas in London FTSE 100 is trading up by 21.51 points at 5,100.78.

The BSE Metal index lost (2.23%) or 318.81 points 13,952.93. Losers are Sesa goa Ltd (5.62%), JSW Steel (3.81%), Welspan Guajrat SR (3.50%), Tata Steel (2.85%) and Steel Authority (2.37%).

The BSE IT index closed down by (1.72%) or 77.10 points at 4,413.46 on disappointing US housing data. Main losers are Aptech Ltd (4.42%), HCL Tech (2.71%), TCS Ltd (2.06%), Wipro Ltd (2.04%) and Infosys Tech (1.74%).

The BSE Teck index closed lower by (1.3%) 41.72 points at 3,176.97. Losers are Aptech Ltd (4.42%), HCL Tech (2.71%), IBN18 (2.63%), HT Media (2.28%) and TCS Ltd (2.06%).

The BSE Bank index ended down by (1.14%) or 108.93 points at 9,434.49 fell on profit taking as ICICI Bank (2.50%), Karnataka Bank (2.08%), Yes Bank (1.92%), Indian Overseas Bank (1.56%) and Canara Bank (1.31%) ended in red.

The BSE Pharma index increased by (5.33%) or 217.9 points at 4,309.79. Gainers are Dr Reddy’s Lab (10.50%), Orchid Chem (9.19%), Aurobindo Pharma (8.51%), Biocon Ltd (7.27%) and Sun Pharma (7.04%).

The BSE Oil & Gas index advanced by (0.97%) or 97.18 points at 10,240.15. Gainers are Indian Oil Corporation (1.77%), HPCL (1.31%), Reliance (1.21%), BPCL (1.20%) and Cairn Indi (1.10%).

Welspan Gujarat SR closed lower by 3.50%. It launched and successfully priced, Foreign Currency Convertible Bonds ("FCCB") offering for an amount of US $ 130 Million, with an upsize option of US $ 20 million. The funds will be utilized to invest for capital expenditure, investments in growth opportunities and other usage in accordance with applicable statutory and/or regulatory requirements.

BHEL dropped by 0.18%. The company has bagged a Rs 365 crore order from the Nuclear Power Corporation of India Ltd. for supply of four steam generators for India''s second 700 MWe nuclear power station, being set up at Rajasthan Atomic Power Project, Kota. The stock is now trading higher by (0.28%) at Rs. 2,256.

Infosys fell 1.74% on concerns of higher expenses after a report it plan to give pay rises and promotions next month.

M&M Ltd lost 1.30% on reports that the company is planning to consolidate its stake in Swaraj Engines, as part of its plan to expand the diesel engine business.

Wockhardt Limited closed up by 3.56%. The companyhas received a very prestigious award instituted by the Government of India as the ''Pharmaceutical Company for the maximum number of Patent filings and grants from India.'' Wockhardt has been granted 70 patents, 15 from the Indian Patent office and 55 from the American and European Patent offices.

Strides Arcolab Limited (Strides) ended up by 5.80%. The company said that it has launched its anti MINI drug - Starflu in retail. Starflu is the generic version of drug Oseltamivir and is available in 75 mg capsules in a strip of 10''s, the MRP for which is Rs 460 per strip.

Maruti Suzuki rose 0.47% on reports that the company will relaunch SX4with a new 1.6 litre engine, which will have a higher pick up.