Post Session Commentary - Oct 14 2009

The Indian market extended its previous session’s gains to close higher on significant buying over the ground. Market touched 17 month highs during the trading and BSE Sensex ended above 17,200 level along with NSE Nifty closed above 5,100 level. Stocks rallied sharply following firm cues from European markets and positive closing of Asian stocks. In addition, higher US index futures triggered by a strong guidance from chip major Intel, also contributed to the upward journey. Meanwhile, C Rangarajan, chairman of the prime minister’s Economic Advisory Council stated that the Reserve Bank of India (RBI) is doubtful to revise standard interest rates when it reviews monetary policy later this month. However, the RBI holds its quarterly policy review on October 27. Additionally, he said that India’s economy would grow 6-6.5% with an upward bias in the year to March 31, 2010.

The market opened today on upbeat note amid favorable cues from the markets all over the world. Asian stocks opened with gains whereas, On Monday, the US stock market ended flat despite weaker dollar, as Johnson & Johnson revenue missed estimates that enthused worries about this earnings season. Investors remained worried by news that Meredith Whitney Advisors downgraded shares of Goldman Sachs. Meanwhile, Intel reported its third quarter earnings after closing of market. Both profit and revenue significantly outpaced expectations and its third quarter revenue stood above $9 billion. Further, benchmark indices continued trade in positive terrain and extended gains in line with positive European markets. Finally, market maintained its’ strength and ended in green territory on brisk buying across the counters. From the sectoral front, all indices ended in green barring Teck stocks. Moreover, most of the buying was seen in Metal, Capital Goods, Auto, PSU, Bank, Consumer Durable, Power and Realty stocks. Broader market indices also followed the same trend, as the BSE Midcap index and the BSE Smallcap index advanced by more than 1% each.

Among the Sensex pack 25 stocks ended in green territory and 5 in red territory. The market breadth indicating the overall health of the market remained positive as 1685 stocks closed in green while 1075 stocks closed in red and 80stocks remained unchanged in BSE.

The BSE Sensex closed higher by 204.44 points or (1.20%) at 17,231.11 and NSE Nifty ended up by 63.95 points or (1.27%) at 5,118.20. BSE Mid Caps and Small Caps closed with gains 124.77 and 114.91 points at 6,503.23 and 7,564.25 respectively. The BSE Sensex touched intraday high of 17,274.59 and intraday low of 17,117.90.

Gainers from the BSE Sensex pack are M&M Ltd (6.12%), Sterlite Industries (5.38%), Hindalco (5.04%), JP Associates (5.01%), Tata Steel (4.69%), SBI (4.46%), Tata Motors (4.07%), BHEL (3.07%), TCS Ltd (2.08%), NTPC (2%), L&T Ltd (1.96%), Tata Power (1.81%), DLF Ltd (1.78%), HDFC (1.50%) and Wipro Ltd (1.28%).

Losers from the BSE Sensex pack are RCom (6.54%), Bharti Airtel (3.25%), Reliance Infra (2.59%), ACC Ltd (0.73%) and Grasim Industries (0.53%).

On the global markets front, the Asian markets that opened before the Indian market, ended mostly higher amid expectations of upbeat quarterly earnings figures. Shanghai Composite, Hang Seng, Singapore''s Straits and Seoul Composite ended higher by 34.34, 419.12, 40.08 and 20.16 points at 2,970.53, 21,886.48, 2,708.48 and 1,609.49 respectively. However, Nikkei 225 lost 16.35 points to 10,060.21.

European markets, which opened after the Indian market, are trading in green. In Paris the CAC 40 is higher 66.41 points at 3,8467.8, in Frankfurt DAX index is trading up 109.32 points at 5,823.63 and in London FTSE 100 is trading higher by 89.72 points at 5,243.87.

The BSE Metal index outperformed the benchmark indices and increased by (5.27%) or 780.29 points at 15,587.83 on stronger domestic demand. Gainers are Sesa Goa Ltd (13.89%), Jindal Steel (7.94%), Jindal Saw (5.59%), Sterlite Industries (5.38%) and Hindalco (5.04%).

The BSE Capital Goods index ended up by (2.38%) or 329.26 points at 14,185.34, as Usha Martin (8.76%), Aiaengineer (8.56%), Punj Lloyd (7.29%) and Crompton Greaves (5.85%) ended in green.

The BSE Auto index ended up by (2.28%) or 149.13 points 6,694.04. Main gainers are M&M Ltd (6.12%), bharat Forge (5.82%), Exide Industries (5.24%), Escorts Ltd (4.57%) and Tata Motors (4.07%).

The BSE PSU index closed higher by (1.65%) or 148.12 points at 9,120.39. Gainers are Dena Bank (6.90%), Bank of India (6.54%), Corporation (6.45%), SBI (4.46%) and Neyveli LIG (4.13%).

The BSE Bank index gained (1.63%) or 163.39 points 10191.84. Gainers are Bank of India (6.54%), Federal Bank (5.50%), Indus Ind Bank (5.35%), Yes Bank (5.16%) and SBI (4.46%).

The BSE Teck index lost (0.37%) or 11.23 points at 3,013.92. Losers are RCom (6.54%), Tata Comm (3.35%), Bharti Airtel (3.25%), Idea Cell (2.99%) and Tata Teleserv (1.83%).

Exide Industries gained 5.24%. The company''s net profit jumped 92.3% to Rs 149.67 crore on a 5.5% increase in sales to Rs 950.31 crore in Q2 September 2009 as compared to Q2 September 2008.

Suven Life Sciences Ltd ended up by 4.88%. The company''s clinical candidate SUVN-502 for Alzheimer''s Disease secured several product patents granted at all the key market countries.

Larsen & Toubro Ltd closed higher by 1.96% on report that Metallurgical, Material Handling & Water Operating Company - a part of its Construction Division has bagged orders aggregating Rs. 966 crore from Customers like Sterlite Industries India Ltd, Uttar Pradesh Jal Nigam & Gujarat Water Infrastructure Ltd.

Suzlon Energy Ltd fell by 1.44% despite it announced about the completion and commissioning of a 19.5 MW wind farm project for the Gujarat Mineral Development Corporation (GMDC) at the Maliya - Mivana site in Rajkot District of Gujarat.

Unitech Ltd spurted by 4.36% after the company announced that it sold property worth Rs. 4,000 crore in the March to September period.

Areva T&D Ltd gained 0.17% on announcement that it won an order worth approximately Rs. 150 crore from the Power Grid Corporation of India Ltd for a 765 kV extra high voltage substation.

FCS Software Solutions gained 3.75%. The company has successfully inaugurated its subsidiary in Middle East, Ras Al Khaimah - free Trade Zone (RAK) and entered into agreement with MACNES in UAE for promoting and selling its services to their clients.

Tata Communications dropped by 3.35%. The company announced that it will start delivering capacity into Australia via the privately owned PIPE Pacific 1 (PPC-1) cable system. PPC-1 is a new two-fiber-pair cable system connecting the territory of Guam to Sydney, Australia.