Post Session Commentary - Sep 8 2009

Domestic market concluded today’s journey in green terrain on significant buying interest led by firm global cues. Asian markets ended with gains and European markets are trading on firm note. In addition, higher US index futures also contributed to the upswing in key benchmark indices. However, market slipped sharply from the day’s high in second half of trading on profit booking, before gathering momentum again. Meanwhile, concerns over a poor monsoon weighed on sentiments to an extent despite revival in monsoon rains in past few days. The BSE Sensex ended above 16,100 level and NSE Nifty closed above 4,800 mark.

Market extended its yesterday’s gains and witnessed gap up opening as global market sentiments continue to rise. The Asian markets were trading in upward direction in early trade whereas US markets remained closed on Monday on Labor Day holiday. Further, Indian benchmark indices continued to move upward on sustained buying momentum. Besides, volatility was also observed as investors booked some profits after a spectacular rally in the previous session. Market slipped from the day’s high during second half of trading as key stocks were facing some selling pressure. Finally, market recuperated strength again and extended gains till end on positive European stocks. On the sectoral front, most of the buying was witnessed in Metal, Oil & Gas, Capital Goods, Bank and Consumer Durable stocks. However, FMCG, Auto, Realty and IT stocks remained out of favour during the trading. BSE Midcap and Smallcap stocks also outperformed during the trading as ended with gains of more than 2% each.

Among the Sensex pack 15 stocks ended in green territory and 15 in red green territory. The market breadth indicating the overall health of the market remained negative as 1461 stocks closed in red while 1362 stocks closed in green and 66 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 107.35 points (0.67%) at 16,123.67 and NSE Nifty ended up by 22.35 points or (0.47%) at 4,805.25. BSE Mid Caps and Small Caps closed with losses of 25 and 10.52 points at 5,942.77 and 7,178.95 respectively. The BSE Sensex touched intraday high of 16,232.16 and intraday low of 16,030.56.

Gainers from the BSE Sensex pack are Hindalco (6.05%), Sterlite Industries (4.78%), SBI (4.36%), Reliance (3.73%), Reliance Infra (3.72%), Tata Steel (3.24%), Heohonda Motors (2.26%), L&T Ltd (1.27%), J P Associates (1.21%), TCS Ltd (0.65%), BHEL (0.62%) and Bahrti Airtel (0.59%).

Losers from the BSE Sensex pack are Tata Power (3.07%), HUL (2.66%), M&M Ltd (2.39%), RCom (2.26%), Maruti Suzuki (2.16%), Infosys Tech (.05%), ITC Ltd (1.04%), HDFC (0.88%), HDFC Bank (0.83%) and Sun Pharma (0.73%).

On the global markets front, the Asian markets that opened before the Indian market, ended higher after finance officials from 20 rich and developing countries pledged to keep in place their massive stimulus programs to prop up the global economy. Shanghai Composite, Hang Seng, Nikkei 225, Singapore''s Straits Times Index and Seoul Composite closed up by 49.36, 440.50, 72.29, 16.96 and 11.12 points at 2,930.48, 21,069.81, 10,393.23, 2,660.91 and 1,619.69 respectively.

European markets, which opened after the Indian market, are trading in green for the third successive session. In Paris the CAC 40 is higher by 16.83 points at 3,669.67, in Frankfurt DAX index is trading up by 28.40 points at 5,491.91 and in London FTSE 100 is trading higher 30.66 points at 4,963.84.

The BSE Metal index closed up by (2.51%) or 325.91 points at 13,315.37 after LMEX, a gauge of six metals traded on the London Metal Exchange increased 0.68% overnight. Main gainers are Hindalco (6.05%), Sterlite Industries (4.78%), Gujarat NRE C (3.63%), Tata Steel (3.24%) and Jai Nalco (2.72%).

The BSE Oil & Gas index gained (2.01%) or 199.87 points 10,129.87 as Reliance (3.73%), Reliance Pet (3.45%), Cairn Ind (1.72%) and HPCL (0.31%) ended in green.

The BSE Capital Goods index ended higher by (0.64%) or 87.84 points 13,294.60. Gainers are BEML Ltd (10.48%), Usha Martin (8.40%), Reliance Industrial Infra (4.69%), Everest Kanto (1.59%) and L&T Ltd (1.27%).

The BSE Bank index went up by (0.46%) or 39.98 points at 8,643.90. Gainers are SBI (4.36%), Allahabad Bank (3.93%), Bank of Baroda (0.90%), Yes Bank (0.85%) and Punjab National Bank (0.21%).

The BSE FMCG index closed lower by (1.15%) or 29.78 points at 2,557.39. As Dabur India (3.22%), Tel Eighteen (2.66%), United Spr (2.23%), Amrico Ltd (1.33%) and Tata Tea Ltd (1.30%) closed in negative terrain.

The BSE Auto index dropped (0.97%) or 60.63 points at 6,167.57. Losers are Amtek Auto (8.76%), Exide Industries (3.42%), M&M Ltd (2.39%), Amruti Suzuki (2.16%) and Bharat Forge (1.99%).

Tata Consultancy Services (TCS) advanced by 0.65%. Microsoft India and TCS announced a strategic alliance between the two companies to launch Microsoft-TCS virtualization Center of Excellence (CoE) in Chennai, Designed to help customers experience the right approach to applying and managing virtualization across IT architectural layers (namely server, machine, application and desktop) in their business environments.

Four Soft Limited gained 1.81%. The company announced that its subsidiary Four Soft Netherlands BV has signed a contract with Panafresh Logistics BV, Netherlands, to automate Its freight forwarding operations by implementing 4S eTran$ SME across Its locations, One of the emerging Netherlands based 3PL logistics company, Panafresh Logistics BV, offers high-quality, cost-effective logistics solutions for exporters and Importers.

Cholamandalam DBS Finance Ltd zoomed 9.94% on reports the financial services unit of Larsen & Toubro is in talks to buy the company''s domestic mutual fund operation.

Bharti Airtel Ltd gained 0.59% after a block deal of 30 lakh shares was executed on NSE at Rs 425 per share.

Jaybharat Textiles & Real Estate Ltd jumped 10% after the company fixed September 17, 2009 as the record date for a 1:2 bonus issue.

Gateway Distriparks Ltd increased by 4.14% on reports the firm is close to signing a deal with an international private equity firm to raise around Rs. 300 crore, by selling a stake of up to 25% in its unit Gateway Rail Freight.

Gujarat NRE Coke Ltd spurted 3.63% after the company said its board will meet on September 19, 2009 to consider a bonus issue of ''B'' class shares.

Tech Mahindra closed down by 1.22% after it bagged a Rs 2,000-crore deal for end-to-end outsourcing of IT applications and infrastructure from Etisalat DB Telecom, a joint venture between the UAE-based Etisalat and the Dynamix Balwas group.