Post Session Commentary - Oct 12 2009

Indian market surged during the session to close sharply higher due to better than expected IIP data. . India''s industrial output for August rose 10.4% as against 1.7% year-on-year. Also the rally in the European markets along higher US index futures contributed to the upward movement of benchmark indices. Further, stocks raised also on Anil Ambani''s decision to sort out all disagreements with Mukesh cordially. On the other hand, strong response to the Indiabulls Power IPO fully subscribed within half an hour of opening of the issue today, 12th October 2009, also boosted the sentiments of the investors. BSE Sensex ended above 17,000 level and NSE Nifty closed around 5,050 level.

The market opened today on pleasant note along tracking firm cues from the global markets. Asian stocks were mixed and US stock market ended higher on Friday on late buying. Stocks recovered their losses after a fall in initial trade. The Dow Jones hit a fresh 2009 high, as investors expected positive news from key earnings reports. Further, benchmark indices continued their northward journey on huge buying over the counters. In addition, better than expected IIP data and positive opening of European markets helped the stocks to touch day’s high level during last trading hours. Markets extended their gains to more than 2% towards the final trading to close with strong gains. From the sectoral front, investros’ on-loaded position across the sectors. Besides, Consumer Durable, IT, Bank, Oil & Gas, Teck, FMCG, Metal and Realty stocks contributed to most of the buying. Broader market indices were also in the green, with the BSE Midcap index and the BSE Smallcap index gained more than 1% each.

Among the Sensex pack 27 stocks ended in green territory and 3 in red territory. The market breadth indicating the overall health of the market remained positive as 1627 stocks closed in green while 1108 stocks closed in red and 94 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 384.01 points or (2.31%) at 17,026.67 and NSE Nifty ended up by 109.05 points or (2.21%) at 5,054.25. BSE Mid Caps and Small Caps closed with gains 77.08 and 77.55 points at 6,378.46 and 7,449.34 respectively. The BSE Sensex touched intraday high of 17,068.78 and intraday low of 16,678.32.

Gainers from the BSE Sensex pack are SBI (5.16%), Reliance Infra (5%), Wipro Ltd (3.79%), ITC Ltd (3.74%), TCS Ltd (3.36%), Reliance (3.19%), M&M Ltd (2.83%), Infosys Tech (2.82%), Maruti Suzuki (2.8%), Sun Pharma (2.51%), Tata Steel (2.51%), HDFC (2.41%), Bharti Airtel (2.23%), DLF Ltd (2.13%) and ICICI Bank (2.07%).

Losers from the BSE Sensex pack are Herohonda Motors (0.90%), RCom (0.62%) and BHEL (0.21%).

India''s industrial output for August rose 10.4% as against 1.7% year-on-year. As low base effect from last year helped the growth, the strong impetus that Indian industry has been exhibiting since May also lifted the numbers. All constituents supported the growth in index with mining increasing 12% as against 2.8%. In addition, basic goods index is up 10% as against 3.9% and manufacturing is at 10.2% as against 1.7%. Consumer goods recorded a strong expansion of 22.3% while non-durable expanded by 3.7%. Meanwhile, July''s annual industrial growth rate was revised up to 7.2% from 6.8% previously.

On the global markets front, the Asian markets that opened before the Indian market, ended mixed amid concern ahead of earnings announcements from large U.S. companies that may make clear the state of the world''s largest economy. Nikkei 225 and Singapore''s Straits ended higher by 183.92 and 27.96 points at 10,016.39 and 2,680.47 respectively. However, Shanghai Composite, Hang Seng and Seoul Composite lost 17.23, 200.09 and 6.98 points to 2,894.48, 21,299.35 and 1,639.81 respectively.

European markets, which opened after the Indian market, are trading in green. In Paris the CAC 40 is higher 46.75 points at 3,846.36, in Frankfurt DAX index is trading up 76.12 points at 5,788 and in London FTSE 100 is trading higher by 66.95 points at 5,221.59.

The BSE Consumer Durable index ended up by (3.72%) or 136.57 points at 3,807.44, as Rajesh Export (9.70%), Blue Star L (6.58%), Gitanjali GE (3.39%) and Titan Ind (3.09%) ended in green.

The BSE IT index closed higher by (2.94%) or 025.59 points at 4,402.40 on a weakening rupee against dollar. Gainers are Patni Computer (5.46%), Wipro Ltd (3.79%), TCS Ltd (3.36%), Rolta Ind (3.21%) and Mphasis Ltd (2.98%).

The BSE Bank index gained (2.63%) or 256.74 points 10,028.45. Gainers are SBI (5.16%), Kotak Bank (4.18%), Punjab National Bank (3.79%), Bank of India (3.76%) and Canara Bank (3.41%).

The BSE Teck index advanced by (245 %) or 72.38 points at 3,025.15. Gainers are Deccan Chr (7.36%), Patni Computer (5.46%), Wipro Ltd (3.79%), TCS Ltd (3.36%) and Tata Comm (3.36%).

The BSE Oil & Gas index increased by (2.35%) or 241.01 points at 10,505.49. Gainers are RNRL (5.30%), Reliance (3.19%), ONGC Ltd (2.02%), Aban Offshore (1.81%) and Cairn Ind (0.44%).

The BSE FMCG index ended up by (2.25%) or 62.01 points at 2,813.99. Main gainers are Dabur Ind (5.45%), ITC Ltd (3.74%), Marico Ltd (1.90%), Godrej Cons (1.33%) and Colgate Palm (1.16%).

Reliance Industries Ltd gained 3.19%. Anil Ambani decided to sort out all disagreements with Mukesh cordially. He reached out to alienated elder brother and said in a statement that he has "maintained the greatest of love, affection and respect for Mukesh ... over past four years have left no stone unturned to find a solution.

Nucleus Software Exports ended up by 108.70%. The company announced that their flagship product FinnOne, World''s Number 1 Selling Lending Software Product, has been successfully supporting and delivering operational excellence and strengthening rapid business growth at country''s leading bank HDFC Bank, India.

South Indian Bank advanced by 3.60%. The bank is looking at setting up more branches and s now spreading its wings across the country

Grasim rose 0.79%. The company said on Saturday, 3 October 2009 that it will transfer its cement business to its unlisted unit Samruddhi Cement. The demerger will be completed by March 2010 after which Samruddhi Cement will be listed. Samruddhi will then make an offer to UltraTech Cement for consolidation of the group''s cement business. For every share, shareholders of Grasim will get one share of Samruddhi.

Kajaria Ceramics rose 2.47% after net profit surged 50.95% to Rs 8.77 crore in Q2 September 2009 over Q2 September 2008.

EID Parry India rose 1.44% after the company acquired 76% in Karnataka-based unlisted Sadashiva Sugars with a capacity of 2,500 tonnes crushed per day.