Post Session Commentary - Oct 26 2009

The Indian market closed in negative territory after a sharp volatile session. The profit booking strengthened in the last few minutes of trading. The investors remained cautious ahead of the RBI’s announcement of monetary policy review on October 27. The Apex bank is likely to keep interest rates unchanged. The RBI in he recnt past has injected huge amount of money in to the banking system to boost the liquidity as well as to revive the economy from the Global financial crisis. So there are speculation in the market that RBI may exit from the loose monetary policy. This led the investors to stay away from the interest rate sensitive indices like Bankex and Realty, which were the major laggards during the trading session. Further the investors remained cautious ahead of the November F&O expiry later this week. The markets also shrugged off the positive global markets. The BSE Sensex closed below the 16,800 mark while Nifty just below 5,000 mark. From the sectoral front, FMCG (0.89%), Health Care (0.87%) and IT (0.51%) indices closed in green. However, Consumer Durables, Banking, Oil & Gas and PSU stocks also remained under pressure.

The market during the trading session witnessed high volatility. The markets started the week on a positive note with marginal gains taking firm cues from the Asian markets. On the global front, the US markets closed lower on Friday as investors booked some profits leaving the major indices to end the week on a down note. The investors also set aside the large batch of better than expected earnings results and an improved rate of existing home sales. The Nasdaq remained in green in the early trade mainly led by a pair of positive earnings from Microsoft and Amazon.com. Shares of Microsoft hit a fresh 15-month high, while shares of Amazon hit new record highs. On the economic front, the existing home sales data for the month of September jumped to an annualized rate of 5.57 million from 5.09 million the month before. Further the Fed Chairmen Bernanke comments about the financial system did not provide much direction to the markets as he didn’t offer any new insight or make any original statements.

Among the Sensex pack 14 stocks ended in positive territory and 16 in negative territory. The market breadth indicating the overall health of the market remained in negative as 992 stocks closed in green while 1743 stocks closed in red and 67 stocks remained unchanged in BSE.

The BSE Sensex closed lower by 70.31 points or (0.42%) at 16,740.50 and NSE Nifty closed down by 26.15 points or (0.52%) at 4,970.90. BSE Mid Caps and BSE Small Caps closed with loss of 117.17 points and 100.48 points at 7,573.02 and 8,791.18 respectively. The BSE Sensex touched intraday high of 16,938.88 and intraday low of 16,706.08.

Gainers from the BSE Sensex pack are Tata Motors (1.88%), Tata Steel (1.79%), ITC Ltd. (1.79%), HDFC (1.69%), NTPC (1.21%) and Sun Pharma (1.03%).

Losers from the BSE Sensex pack are DLF Ltd. (5.41%), Jai Prakash Associate (3.45%), Hindalco Industries (3.08%), Reliance Communication (2.83%), Reliance Infra (2.38%), SBI (2.05%), Reliance Industries (1.56%), BHEL (1.55%) and Icici Bank (1.49%).

On the global markets front, the Asian markets that opened before the Indian market, closed in green. Shanghai Composite, Hang Seng, Nikkei 225, Strait Times and Seoul Composite ended up by 0.06%, 1.71%, 0.77%, 0.05% and 1.03% at 3,109.56, 22,589.73, 10.362.62, 2,716.62 and 1,657.11 respectively.

European markets, which opened after the Indian market, are trading higher. In Paris the CAC 40 is up by 0.62% at 3,831.71, in Frankfurt DAX index is trading up by 0.78% at 5,785.04 and in London FTSE 100 is higher by 0.40% at 5,263.37.

BSE REALTY indexwas at 4,315.39 down by 207.42 points or by (4.59%) The main losers were Unitech Ltd down by (5.98%) at Rs.92.75, Dlf Ltd down by (5.41%) at Rs.430.1, Orbitco down by (4.69%) at Rs.248.1, Indiabull Real down by (4.52%) at Rs.263.8, Omaxe Ltd down by (4.22%) at Rs.117.95.

BSE METAL index was at 15,243.17 down by 177.79 points or by (1.15%) The main losers were Jsw Steel down by (4.45%) at Rs.814.45, Jai Corp down by (3.79%) at Rs.186.45, Hindalco Industries down by (3.08%) at Rs.137, Sesa Goa Ltd down by (2.58%) at Rs.315.6, Nmdc Ltd down by (2.52%) at Rs.327.35.

BSE BANKEX index was at 10,064.02 down by 167.39 points or by (1.64%) The main losers were Karnataka Bank down by (9.28%) at Rs.143.7, Union Bank down by (6.78%) at Rs.248.25, Indus Ind Bank down by (4.28%) at Rs.133.1, Canara Bank down by (4.07%) at Rs.363, Indian Overseas Bank down by (3.56%) at Rs.128.7.

BSE CG index was at 13,316.06 down by 131.39 points or by (0.98%). The main losers were Punj Lloyd down by (16.47%) at Rs.217.65, Havells india down by (5.53%) at Rs.315.8, Skf India down by (4.65%) at Rs.288.05, Suzlon energy down by (3.91%) at Rs.81, Aiaengineer down by (3.35%) at Rs.329.

BSE FMCG index was at 2,849.86 up by 25.15 points or by (0.89%) The main gainers were Unitd Spirits up by (2.93%) at Rs.1048.2, Dabur India Ltd. up by (2.22%) at Rs.154.4, Colgate Palmolive up by (2.16%) at Rs.723.7, I T C Ltd up by (1.79%) at Rs.264.5, Britania Industries up by (1.09%) at Rs.1740.45.

BSE AUTO index was at 6,451.35 down by 15.58 points or by (0.24%) The main losers were Exide Indus down by (3.36%) at Rs.103.5, Bharat Forge down by (2.72%) at Rs.264.9, Ashok Leyland down by (2.59%) at Rs.43.3, Escorts Ltd. down by (2.34%) at Rs.114.55, Mrf Ltd down by (1.72%) at Rs.5757.4.

BSE CD index was at 3,552.28 down by 86.5 points or by (2.38%) The main losers were Titan Industries down by (4.74%) at Rs.1296.55, Gitanjali Gems down by (2%) at Rs.122.2, Blue Star down by (1.67%) at Rs.360.15, Rajesh Export down by (0.97%) at Rs.76.9, Videocon Industries down by (0.79%) at Rs.244.65,

BSE POWER index was at 3,105.36 down by 32.42 points or by (1.03%) The main losers were Suzlonenergy down by (3.91%) at Rs.81, Torent Power down by (3.6%) at Rs.294.35, Rel Infra down by (2.38%) at Rs.1201, Crompton Greaves Ltd. down by (2.17%) at Rs.338.4, Lanco Infra down by (1.9%) at Rs.503.25.

BSE HC index was at 4,439.91 up by 38.11 points or by (0.87%) The main gainers were Cipla Ltd. up by (3.79%) at Rs.296.1, Aurobindo Pharma up by (3.07%) at Rs.846.5, Ranbaxy Laboratories Ltd. up by (2.59%) at Rs.381.9, Dr.Reddys Laboratories Ltd. up by (1.61%) at Rs.975.65, Ipca Lab Ltd. up by (1.37%) at Rs.844.95.

BSE OIL&GAS index was at 9,855.75 down by 150.94 points or by (1.51%) The main losers were Aban Offsho down by (10.36%) at Rs.1381.05, Essar Oil Ltd. down by (4.86%) at Rs.151.7, Ril Nat Res down by (4.63%) at Rs.80.4, Hindustan Petroleum Corp. Ltd. down by (3.04%) at Rs.342.95, Cairn Ind down by (1.77%) at Rs.279.9.