Pre Session Commentary - Sep 16 2009

Today domestic markets are likely to open positive as majority of Asian markets have also opened positive. The US markets closed higher on the back of phenomenal greater than expected August Producer Price Index which increased by 1.7% month over month. The sentiments are positive across the globe and therefore one could witness some early buying momentum across broader level. Today the domestic markets are likely to trade positive.

On Tuesday, Indian market surged during the session to close sharply higher on significant buying support led by reports of higher advance tax payment by some top Indian firms. Meanwhile, global cues are mixed today and US index futures are skipping up and down. Further, stocks raised also on a survey showing an improvement in business confidence in India. The National Council of Applied Economic Research (NCAER) said on 14 September 2009 that NCAER''''s business confidence index jumped to 118.6 points in the June 2009 quarter, which is 37 points up from previous quarter, when it was at its the lowest level since February 1998. The BSE Sensex ended above16,450 level and NSE Nifty closed around 4,900 mark.

The BSE Sensex closed higher by 240.26 points or (1.48%) at 16,456.45 and NSE Nifty ended up by 83.50 points or (1.74%) at 4,892.10. BSE Mid Caps and Small Caps closed with gains of 108.69 and 95.02 points at 6,039.07 and 7,228.68 respectively. The BSE Sensex touched intraday high of 16,477.23 and intraday low of 16,255.42.

On Tuesday, US markets closed higher. Stocks marked their seventh straight session gain as buyers were keen on buying materials and commodities stocks. The major indices were marching in the northward direction on the back of the August Producer Price Index, which came in with a greater-than-expected 1.7% month-over-month increase, and a stronger-than-expected 0.2% month-over-month increase in core prices. Phenomenal gains among commodities helped the CRB Commodity Index climb 2.2%. The move was also supported by 3.0% gain in crude oil prices. Crude oil futures for the month of October delivery gained by 3.0% at $70.93 barrel on New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed higher by 56.61 points at 9,683.41. NASDAQ index gained by 10.86 points at 2,102.64 and the S&P 500 (SPX) also inclined by 3.29 points to close at 1,052.63 points.
Indian ADRs ended in green on Tuesday. In the IT space, Infosys was up 1.49%, Wipro was up 0.3%, Patni Computers was up 3.51% while Satyam Computers ended flat. In the banking space, ICICI Bank was up 2.3% and HDFC Bank was up 1.56%. In the telecom space, Tata Communication was up 1.53%, while MTNL was down 1.33%. In other sectors, Sterlite Industries was up 3.34%, Dr Reddy''s Labs was up 1.38% and Tata Motors was up 0.16%.

Today the major stock markets in Asia are trading positive. Hang Seng index is trading up by 334.18 points at 21,20.55. Japan''s Nikkei inclined by 139.46 points at 10,357.08 Singapore''s Straits is up by 35 points at 2,673.40 and Taiwan Weighted is also trading high by 83.33 points at 7,429.59.

The FIIs on Tuesday stood as net buyers in equity and net sellers in debt. Gross equity purchased stood at Rs 1,863.10 Crore and gross debt purchased stood at Rs 296.10 Crore, while the gross equity sold stood at Rs 1,601.00 Crore and gross debt sold stood at Rs 308.40 Crore. Therefore, the net investment of equity and debt reported were Rs 262.10 Crore and Rs (12.30) Crore respectively.

On Tuesday, Indian Rupee closed at 48.64./66 per dollar, 0.2% stronger than its previous close at 48.73./74. The stronger local stock markets helped local currency to gain strength against the green back..

On BSE, total number of shares traded were 41.07 Crore and total turnover stood at Rs 5,125.14 Crore. On NSE, total number of shares traded were 83.65 Crore and total turnover was Rs 16,437.15 Crore.

On NSE Future and Options, total number of contracts traded in index futures was 592450 with a total turnover of Rs 13,830.30 Crore. Along with this total number of contracts traded in stock futures were 616504 with a total turnover of Rs 20,573.87 crore. Total numbers of contracts for index options were 1320294 with a total turnover of Rs 31,895.56 Crore and total numbers of contracts for stock options were 60612 and notional turnover was Rs 2,094.69 Crore.

Today, Nifty would have a support at 4,915 and resistance at 4,943 and BSE Sensex has support at 16,498 and resistance at 16,612