Post Session Commentary - Sep 7 2009

Indian market extended its previous session’ gains to hit 15-month highs on significant buying over the counters. The BSE Sensex touched intraday high of 16,035.50 and NSE Nifty touched intraday high of 4,790. Stocks rallied sharply during final trading to close near days’ high on account of firm European markets along with positive Asian stocks. Global stocks zoomed after the G20 leaders assured to maintain stimulus measures. In addition, finance ministers from the world''s most powerful economies have agreed a series of measures to try to regulate the global banking system. Further, in domestic arena according to a Ficci survey, stage of confidence of India Inc is getting higher due to the fiscal stimulus measures that started exhibiting its effect on the economic activity. The BSE Sensex ended above 16,000 level and NSE Nifty closed above 4,750 mark.

The market belled the day on pleasant note mirroring favorable cues from the global markets. The US stock markets ended higher on Friday after mixed jobs report. Market rallied as technology stocks advanced following encouraging comments from Intel''s CEO. Meanwhile, the unemployment rate went up to 26-year high of 9.7%, according to the latest jobs report. In addition, the report showed that 216,000 non-farm payrolls were slashed in August. Further, Indian benchmark indices continued to move forward on significant buying momentum. Market reported sharp rise during final trading hours on sharp rise in European stocks, to close with handsome gains. Revival in monsoon in last few days also boosted the sentiments. From the sectoral front, all indices ended in green barring FMCG stocks. Among those, Realty, Metal, Bank, Consumer Durable, Auto, Teck, PSU and Capital Goods stocks witnessed most of the buying from these baskets. BSE Midcap and Smallcap stocks also outperformed during the trading as ended with gains of more than 2% each.

Among the Sensex pack 28 stocks ended in green territory and 2 in red green territory. The market breadth indicating the overall health of the market remained positive as 2244 stocks closed in green while 587 stocks closed in red and 54 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 327.20 points (2.09%) at 16,016.32 and NSE Nifty ended up by 102.50 points or (2.19%) at 4,782.90. BSE Mid Caps and Small Caps closed with gains of 134.55 and 197.96 points at 5,967.77 and 7,189.47 respectively. The BSE Sensex touched intraday high of 16,035.50 and intraday low of 15,793.27.

Gainers from the BSE Sensex pack are Tata Motors (6.26%), RCom (5.22%), JP Associates (4.50%), Bahrti Airtel (3.83%), ICICI Bank (3.62%), DLF Ltd (2.96%), Sterlite Industries (2.92%), TCS Ltd (2.88%), Tata Steel (2.20%), HDFC (1.50%), Heohonda Motors (1.48%), Tata Power (1.46%), L&T Ltd (1.43%), Hindalco (1.38%) and SBI (1.25%).

Only two losers from the BSE Sensex pack are ITC Ltd (0.92%) and M&M Ltd (0.53%).

Federation of Indian Chambers of Commerce and Industry (Ficci) carried out a survey to measure business confidence sentiment, for the month of September. According to the survey, the stage of confidence of India Inc is getting higher due to the fiscal stimulus measures that started exhibiting its effect on the economic activity. 80% of the companies believe that the Indian economy is on the way of recovery and expect improvements in growth performance in the coming months.

On the global markets front, the Asian markets that opened before the Indian market, ended higher following Wall Street gains on last trading session. Shanghai Composite, Hang Seng, Nikkei 225 and Singapore''s Straits Times Index closed up by 19.51, 310.69, 133.83 and 11.33 points at 2,881.12, 20,629.31, 12,320.94 and 2,634.02 respectively. However, Seoul Composite lost 0.33 points at 1,608.57.

European markets, which opened after the Indian market, are trading in green. Market lifted by a GBP10.2 billion offer from Kraft Foods for Cadbury, which saw the food and beverage sector surge. Although, Cadbury rejected the deal, news of the possible renewal of merger activity provided a boost to markets. In Frankfurt, DAX index is trading up by 84.35 points at 5,468.78 and in London FTSE 100 is trading higher 126.43 points at 4,923.18.

The BSE Realty index advanced (5.49%) or 235.87 points at 4,533.36. Gainers are Pheonix Mill (11.55%), Unitech Ltd (7.67%), Housing Dev (6.63%), Sobha Dev (6.70%) and Orbit Co (6.00%).

The BSE Metal index closed up by (3.95%) or 493.40 points at 12,989.46. Main gainers are Jindal Steel (7.10%), Welspan Gujarat SR (6.38%), Ispat Industries (5.68%), Jai Corp Ltd (5.49%) and Sterlite Industries (5.38%).

The BSE Bank index gained (3.10%) or 258.58 points at 8,603.92 as ICICI Bank (6.01%), Oriental Bank (3.56%), Federal Bank (3.30%), Indus Ind Bank (3.06%) and SBI (2.90%) ended in green.

The BSE Consumer Durable index went up by (2.70%) or 88.72 points at 3,378.54. Gainers are Rajesh Export (5.11%), Titan Ind (4.15%), Blue Star L (1.67%), Videcon Ind (1.52%) and Gitanjali GE (0.04 %).

The BSE Auto index ended higher by (2.45%) or 148.93 points 6,228.20. Gainers are Tata Motors (11.32%), Amtek Auto (8.62%), Ashok Leyland (4.16%), Bajaj Auto (3.26%) and Bharat Forge (2.68%).

The BSE Teck index closed higher by (2.31%) or 71.44 points at 3,158.24. Gainers are UTV Software (8.42%), Tel Eighteen (7.86%), Sun TV (7.54%), HT Media (7.05%) and RCom (6.62%).

Nagarjuna Construction Company Limited advanced by 2.34%. The company has successfully concluded a Qualified Institutional Placement (QIP) of Rs.367.35 Crores (US $ 75 Million).

Aurobindo Pharma gained 1.37%. The company has received two approvals from Swissmedic, Government of Switzerland for the license of Amlodipine APL 5mg and 10mg tablets and Metformin APL 500mg, 850mg and 1000mg tablets. In addition, it also received final approval for Risperidone Oral Solution 1mg/mL (ANDA No. 78452) from the US Food & Drug Administration (USFDA).

KNR Constructions Ltd. closed higher by 4.97%. The company announced that it has bagged a new order worth of Rs. 231,28,45,0767- from National Highway Authority of India (NHAI) for completion of balance work of widening to 4/6 lanes and strengthening of existing 2-Ianes carriageway of NH-5 in the State of Orissa to be completed within 24 calendar months.

Tata Steel Ltd gained 2.72% after the company’s steel sales from Indian operations rose 25% to 492,000 tons in August 2009 over August 2008.

L&T Ltd increased by 1.83% after a foreign brokerage raised its rating on the stock to ''''buy'''' from ''''reduce'''', by saying order inflows have revived substantially.

Petron Engineering Construction Ltd zoomed 19.99% after the company bagged an order worth Rs. 37.45 crore.

Pratibha Industries Ltd spurted 2.98% after the company secured a contract worth Rs. 144.69 crore.