Post Session Commentary - Oct 15 2009

Indian market today erased all opening gains to close the volatile session on flat note backed by profit booking after two days rally. Rise in rupee that led fall in export-focused outsourcers, along with huge sell off in IT stocks also contributed to the weak sentiments. Besides, benchmark indices struggled to make headway with fall in European markets after positive opening. However, market touched new 17-month high during initial trading on favorable global cues. Meanwhile, Inflation for the week ended 3rd October stood at 0.92% as against 0.7% of the previous week. BSE Sensex ended around 17,200 level along with NSE Nifty closed below 5,150 level.

The market opened on pleasant note today tracking firm global cues. Asian stocks were higher today and the US stock market closed spectacularly upon Wednesday by strong set of earnings from couple of industry bellwethers and continued weakness in US dollar against major currencies. Strong results from JPMorgan Chase & Co and Intel Corp also bolstered analysts'' optimism over the earnings season that is picking up pace. The Dow broke through the 10,000 mark for the first time since last October mainly due to better-than-expected retail sales. However, benchmark indices slipped soon after start and turned volatile, as investors booked profits at every sharp rise in prices. Further, stocks continued to exhibit weakness on selling pressure emerged in key stocks. During last trading hours market tried to recover and closed marginally below the dotted line. From the sectoral front, Teck, IT, Pharma and Consumer Durable stocks witnessed most of the selling from these baskets. However, Metal, Bank and Power stocks were able to gain favour from the market. Broader market indices also remained on buyer’s radar.

Among the Sensex pack 18 stocks ended in red territory and 12 in green territory. The market breadth indicating the overall health of the market remained flat as 1401 stocks closed in green while 1357 stocks closed in red and 78 stocks remained unchanged in BSE.

The BSE Sensex marginally lower by 35.91 points or (0.21%) at 17,195.20 and NSE Nifty ended slightly down by 9.35 points or (0.18%) at 5,108.85. BSE Mid Caps and Small Caps closed with gains 36 and 65.88 points at 6,539.23 and 7,630.13 respectively. The BSE Sensex touched intraday high of 17,350.39 and intraday low of 17,092.83.

Losers from the BSE Sensex pack are Bharti Airtel (4.21%), Sun Pharma (3.50%), Reliance Infra (3.40%), Infosys Tech (1.78%), TCS Ltd (1.72%), HUL (1.40%), Wipro Ltd (1.06%), ITC Ltd (1.04%), RCom (1.04%), HDFC (1.01%), M&M Ltd (0.96%) and ONGC Ltd (0.40%).

Gainers from the BSE Sensex pack are SBI (2.69%), Tata Power (1.91%), Sterlite Industries (1.84%), ICICI Bank (1.66%), HDFC Bank (1.32%), NTPC Ltd (1.31%), Tata Steel (0.56%), Maruti Suzuki (0.40%) and Herohonda Motors (0.40%).

Inflation for the week ended 3rd October stood at 0.92% as against 0.7% of the previous week. WPI for all commodities stood at 241.9 up 0.92%. While prices of non-processed food items declined by 1.67% on weekly basis, the rates of such articles were higher by 13.34% compared to the same week last year. Meanwhile, the annual inflation rate was 11.49% during the corresponding week of 2008.

On the global markets front, the Asian markets that opened before the Indian market, ended higher amid expectations of upbeat quarterly earnings figures. Shanghai Composite, Hang Seng, Nikkei 225, Singapore''s Straits and Seoul Composite ended higher by 9.26, 112.60, 178.44, 3.67 and 9.9 points at 2,979.79, 21,999.08, 10,238.65, 2,712.15 and 1,658.99respectively.

European markets, which opened after the Indian market, are trading mixed after positive opening. In Paris the CAC 40 is higher by 2.63 points at 3,885.30, whereas in Frankfurt DAX index is trading slightly down 0.64 points at 5,853.50 and in London FTSE 100 is trading lower by 8.01 points at 5,248.09.

The BSE Teck index lost (1.54%) or 46.53 points at 2,967.39. Losers are Dish TV (4.54%), Bharti Airtel (4.21%), Rolta Ind (2.30%) Infosys Tech (1.78%) and TCS Ltd (1.72%).

The IT index ended down by (1.37%) or 60.98 points at 14,381.53 on strengthening rupee against dollar, as Infosys Tech (1.78%), TCS Ltd (1.72%), Wipro Ltd (1.06%), Tech Mahindra (0.52%) and Moser Bayer (0.49%) ended in red.

The BSE Pharma index ended lower by (1.26%) or 56.85 points 4,465.69. Main losers are Sun Pharma (3.50%), Divis Lab (3.35%), Cipla Ltd (2.89%), Glenmark Pharma (1.95%) and Dr Reddys Lab (1.65%).

The BSE Metal index increased by (1.72%) or 268.6 points at 15,856.43. Gainers are Jindal Steel (5.75%), Hindustan Zinc (3.73%), Gujarat NRE C (2.43%), Steel Authority (2.39%) and Sterlite Industries (1.84%).

The BSE Bank index gained (1.58%) or 160.91 points 10,352.75 on better-than-expected numbers Union Bank (3.92%), Federal Bank (3.17%) and SBI (2.69%).

The BSE Power index closed higher by (0.49%) or 15.56 points at 3,189.68. Gainers are Suzlon Energy (4.33%), GMR Infra (3.46%), GVK Power (2.22%), NHPC (1.98%) and Tata Power (1.91%).

Cairn Ind ended up by 0.30%. The company has completed financing arrangements for $1.6 billion for funding its Rajasthan project. The borrowings are of a long-term nature with tenure of six years. The proceeds from this facility will be used to repay the existing facility of $850 million and to continue to fund the ongoing projects in Rajasthan. Besides, it entered into binding Heads of Terms with PETRONAS International Corporation Ltd, (PICL), the overseas arm of Petrollam Naaional Bsrhad (PETRONAS).

NTPC gained 1.31%. The company had signed a joint venture agreement with state-run Coal India. Joint venture is formed to develop the Brahmini and Chichro Patsimal coal mining blocks in eastern India. The mines will supply coal to NTPC''s projects at Farakka and Kahalgaon.

Polaris Software Lab Ltd advanced by 0.24% on report that the company acquired Chennai-based Laser Soft Infosystems for a consideration of Rs. 52 crore.

Nilkamal Ltd climbed 1.44% after net profit increased significantly 181.8% to Rs. 13.13 crore in Q2 Sep’09 over Q2 Sep’08.

GVK Power & Infrastructure Ltd spurted 2.22% after its board of directors approved a proposal to raise up to Rs. 1,800 crore in one or more tranches.

Gruh Finance Ltd spurted 4.52% after net profit rose 29% to Rs. 10.59 crore in Q2 Sep’09 over Q2 Sep’08.

Parsvnath Developers Ltd lost 3.33%, despite its consolidated net profit jumped 183.7% to Rs. 62.42 crore Q2 Sep’09 over Q2 Sep’08.