Post Session Commentary - Sep 9 2009

The domestic market managed to conclude today’s session on a positive terrain after remaining range bound for most of the session. The market staged a smart pull back from the day’s low in the final hours lead by decent gains from the oil and gas stocks.
However, the cues from the Asian markets not in favor as major Asian exchanges closed in red. After a dismal opening, the market recovered from the fall on selective buying across the indices due to the revival in monsoon and a recent survey showed an improvement in business confidence of India Inc. The BSE Sensex ended above 16,150 level and NSE Nifty closed above 4,810 mark.

Lack of favoring cues from the global as well as domestic market, led the Indian benchmark indices to have weak opening. Despite managed to recover from the intial fall but did not manage to sustain at the higher level on selective profit booking across the counters. The US markets which opened after a long weekend due to the celebration of labour holiday, closed in positive. The IMF calls that global recession could end in the beginning of 2010 and G-20''''s call for more bank capital. There was broad-based buying and therefore S&P 500 made solid gains in its first trading session of the week, but the broad market benchmark encountered resistance as it approached last week''''s highs. Energy stocks and materials stocks led gains for the entire session. Commodity prices were also helped by a weaker U.S. dollar, which fell 1.0% against a basket of major foreign currencies to hit an 11-month low after the U.N. said that the greenback should be replaced by a new global reserve currency. On the sectoral front, most of the buying was witnessed in Oil & Gas, Bankex and Health care stocks. However, Realty, Auto and Teck stocks remained out of favour during the trading. The BSE Midcap and Smallcap stocks remained flat.

Among the Sensex pack 17 stocks ended in negative territory and 15 in 13 positive territory. The market breadth indicating the overall health of the market remained negative as 1530 stocks closed in red while 1280 stocks closed in green and 72 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 59.88 points (0.37%) at 16,183.55 and NSE Nifty ended up by 9 points or (0.19%) at 4,814.25. BSE Mid Caps and Small Caps closed flat at 5,939.81 and 7,183.38 respectively. The BSE Sensex touched intraday high of 16,215.74 and intraday low of 16,044.77.

Gainers from the BSE Sensex pack are RIL (4.54%), Hindalco Inds (4.14%), JP Asso (1.88%), HDFC (1.32%) and HDFC bank (1.29%)

Losers from the BSE Sensex pack are DLF (3.51%), Bharti AIrtel (3.36%), Hero Honda (2.24%) and Wipro (1.75%).

On the global markets front, the Asian markets that opened before the Indian market, ended lower following the Yen’s rise against the dollar. Hang Seng, Taiwan Weighted, Seoul Composite, and Japan’s Nikkei closed lower by 1.04%, 0.87%, 0.74%, 0.78% at 20,851.04, 7,250.72, 1,607.77 and 10,312.14 respectively.

BSE REALTY index was at 4,417.06 down by 74.07 points or by (1.65%) The main losers were Dlf Ltd down by (3.51%) at Rs.420.4, Indbul Real down by (2.23%) at Rs.258.1, Ackruti down by (2.17%) at Rs.562.15, Phoenix Mill down by (1.79%) at Rs.169.65, Mahindralife down by (1.15%) at Rs.355.55.

BSE METAL index was at 13,346.79 up by 31.42 points or by (0.24%) The main gainers were Jindal Saw up by (11.71%) at Rs.633.25, Hindalco In up by (4.14%) at Rs.119.6, Nat Alum Co up by (1.52%) at Rs.347.2, Sesa Goa Ltd up by (1.21%) at Rs.226.25, Gujara Nre C up by (1.2%) at Rs.59.2,

BSE BANKEX index was at 8,694.80 up by 50.90 points or by (0.59%) The main gainers were Oriental Bk up by (4.47%) at Rs.213.7, Bank Of Baroda-Pari Passu up by (3.43%) at Rs.452.2, Union Bank up by (2.71%) at Rs.223.4, Bank Of India up by (2.58%) at Rs.343.8, Allahabad Bk up by (2.09%) at Rs.100,

BSE AUTO index was at 6,113.25 down by 54.32 points or by (0.88%) The main losers were Hero honda down by (2.44%) at Rs.1627.85, Bajaj Auto down by (2.34%) at Rs.1234.9, Bharat Forge down by (1.85%) at Rs.217.2, Ashok Leylnd down by (1.83%) at Rs.40.3, Bosch Ltd* down by (1.26%) at Rs.3966.25.

BSE HC index was at 3,910.70 up by 13.78 points or by (0.35%) The main gainers were Opto Circuit up by (10.08%) at Rs.206.4, Bilcare Lt up by (9.42%) at Rs.440.75, Sunpha Adv up by (3.18%) at Rs.79.5, Lupin Ltd up by (3.03%) at Rs.1039.45, Orchid Chem up by (0.96%) at Rs.126.3.

BSE OIL&GAS index was at 10,368.68 up by 238.81 points or by (2.36%) The main gainers were Reliance up by (4.54%) at Rs.2169.35, Rel Pet up by (4%) at Rs.132.7, Essar Oil Ltd. up by (1.84%) at Rs.154.6, Cairn Ind up by (1.56%) at Rs.270.15.

Hexaware Technologies closed lower by 2.64% at Rs. 79.15. The company announced that Mr. N, Nataraj, CIO Hexaware Technologies was credited with the CIO 100 Ingenious Award at the 4th Annual CIO 100 Symposium and Awards Ceremony.

Tata Communications fell by 0.63% to Rs. 484.65. The company and AccessKenya Group, Kenya''''s first publicly listed !CT company and leading corporate internet service provider, today announced that they have signed a partnership agreement to establish a Tier 1 Internet Point-of-Presence (PoP) for Tata Communications in Nairobi, Kenya.

Time Technoplast Ltd enhanced by 2.71% to Rs. 47.40. The company’s joint venture project with Schoeller Area Systems (SAS) Netherland has secured orders for Rs.20 crores approx. from a reputed multinational in India for the supply of "Special Packaging Products".

Supreme Infrastructure India Ltd surged 4.98% to Rs. 116.90, after the company bagged orders cumulative of Rs. 97.39 crore.

IFCI spurted 3.12% to Rs. 59.45 on reports the government has asked the company to induct a strategic partner, after it failed to sell a 26% stake in 2007.

Nucleus Software Exports Ltd gained 4.82% to Rs. 120.80 after the company launched a new version of its cash management software product.