Pre Session Commentary - Sep 14 2009

Today domestic markets are likely to open negative as the majority of Asian markets are trading weak. In addition, the US markets snapped a five-day winning streak and closed lower on Friday due to sharp drop in oil prices and profit-taking that offset an improvement in consumer confidence. In domestic arena, profit booking may emerge after last six trading sessions’ gains. Market is likely to remain volatile during the trading.

On Friday, the domestic market today took a turn after upbeat opening, to close with slight gain due to profit booking after rally in past few days. The market was extremely volatile and was constantly hovering between positive and negative terrain on continuous bouts of buying and selling. Benchmark indices overlooked the positive global cues and industrial output data that came as per expectations. India’s industrial production witnessed rise for the 7th straight month, as it grew 6.8% during July 2009, as compared to 6.4% in the corresponding month last year. The BSE Sensex ended above 16,200 level and NSE Nifty closed above 4,800 mark.

The BSE Sensex closed marginally higher by 47.44 points at 16,264.30 and NSE Nifty ended slightly up by 10.15 points at 4,829.55. BSE Mid Caps and Small Caps closed with losses of 7.89 and 26.92 points at 5,921.61 and 7,101.27 respectively. The BSE Sensex touched intraday high of 16,337.98 and intraday low of 16,130.32.
On Friday, US markets closed negative. After intraday high of 2009, the stocks gave up some gains after six straight sessions. There was moderate selling pressure across the broader level and session end choppy. An upbeat forecast from FedEx provided a lot of support to the industrial sector which closed with a moderate gain of 0.4%. The University of Michigan released a better-than-expected preliminary consumer sentiment survey for September at 70.2, however as the data doesn’t directly correlate with the consumer spending, traders ignored it completely and the retail sector ended with a loss of 0.8%. Further the Import Price Index report for August showed that import prices were down a steeper-than-expected 2.0% month-over-month. Meanwhile, wholesale inventories for July fell 1.4% little worse than expected. At the macro level the August budget showed a smaller-than-expected deficit of $111.40 billion and consequently the treasuries were under pressure. Crude oil futures for the month of October delivery fell by 3.8% at $69.22 barrel on New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed lower by 22.07 points at 9,605.41. NASDAQ index lost 3.12 points at 2,080.90 and the S&P 500 (SPX) also declined by 1.41 points to close at 1,042.73 points.
Today the major stock markets in Asia trading in negative. Hang Seng is low by 204.71 points at 20,956.71. Further, Japan''s Nikkei is low by 257.70 points at 10,186.63 followed by Straits Times trading down by 19.82 points at 2,661.21 and Seoul Composite lower by 12.82 points at 1,638.88. However, Shanghai Composite is trading high by 7.53 points at 2,997.32.

Indian ADR''s ended mixed on Friday. In the IT space, Infosys was down 0.91%, Satyam was down 2.11%, Patni was down 2.78%, while Wipro was up 0.30%. In the banking sector, ICICI Bank gained 1.60% and HDFC Bank was up 0.37%. In the telecom pack, MTNL was up 0.80% and Tata Comm was up 0.50%. In the other space, Sterlite was down 2.99%, Tata Motors slipped 3.13% and Dr Reddys was down 0.96%.

The FIIs on Friday stood as net buyers in equity and debt. Gross equity purchased stood at Rs 2,998.50 Crore and gross debt purchased stood at Rs 663.90 Crore, while the gross equity sold stood at Rs 2,423.60 Crore and gross debt sold stood at Rs 510.40 Crore. Therefore, the net investment of equity and debt reported were Rs 574.90 Crore and Rs 153.50 Crore respectively.



On Friday, Indian Rupee closed at 48.48/49 per dollar, 0.3% stronger than its previous close at 48.50/51. The green back’s fall as against some major currencies helped even the local currency to record some strength. .

On BSE, total number of shares traded were 54.35 Crore and total turnover stood at Rs 5,710.05 Crore. On NSE, total number of shares traded were 94.47 Crore and total turnover was Rs 17,119.67 Crore.

Top traded volumes on NSE Nifty – Unitech with total volume traded 45949958 shares, followed by Suzlon Energy with 39425903, Hindalco with 27994078 shares, DLF with 17375953 shares and Tata Steel with 8265290 shares.

On NSE Future and Options, total number of contracts traded in index futures was 636468 with a total turnover of Rs 14,584.19 Crore. Along with this total number of contracts traded in stock futures were 530946 with a total turnover of Rs 17,325.39 crore. Total numbers of contracts for index options were 1147671 with a total turnover of Rs 27,586.69 Crore and total numbers of contracts for stock options were 62596 and notional turnover was Rs 2,151.87 Crore.

Today, Nifty would have a support at 4,740 and resistance at 4,918 and BSE Sensex has support at 15,972 and resistance at 16,558.