Post Session Commentary - Oct 7 2009

Domestic market pared all its initial gains and ended the day on weak note backed by fresh selling in key stocks that emerged during last trading hours. Profit-booking pressure at several blue chip counters also contributed to the downward journey. However, market exhibited good show during the first half of the trading, mirroring firm global markets but was unable to hold the momentum and slipped further. Meanwhile, benchmark indices moved between positive and negative terrain during afternoon trade on continuous bouts of buying and selling. BSE Sensex ended below 16,900 level and NSE Nifty closed below 5,000 level.

The markets opened higher today for the second straight session tracking overseas gains and a weaker U.S. dollar. On Tuesday, the US stock market ended up for a second day as news that Australia has raised lending rates by 25 basis points revitalized hopes for the global recovery. Fall in dollar to its weakest level in almost two weeks against the Euro and against most other major currencies, also added to the sentiments. Further, Indian benchmark indices continued to trade up till mid session. However, stocks were unable to hold the same impetus and turned negative backed by export-led outsourcers that fell as the rupee rose to its highest in more than a year. Continuing subdued movement, market finally closed in negative on stock specific selling. From the sectoral front, IT, Teck, Oil & Gas, Auto and Bank stocks contributed to most of the selling. However, Consumer Durable, Metal and Pharma stocks remained in limelight as witnessed most of buying from these baskets.

Among the Sensex pack 20 stocks ended in red territory and 10 in green territory. The market breadth indicating the overall health of the market remained positive as 1420 stocks closed in green while 1331 stocks closed in red and 92 stocks remained unchanged in BSE.

The BSE Sensex closed lower by 151.88 points or (0.90%) at 16,806.66 and NSE Nifty ended down by 41.65 points or (0.83%) at 4,985.75. BSE Mid Caps and Small Caps closed with gains 87.63 and 33.96 points at 6,295.06 and 7,406.55 respectively. The BSE Sensex touched intraday high of 17,120.56 and intraday low of 16,764.07.

Losers from the BSE Sensex pack are Wipro Ltd (4.28%), HUL (5.55%), Maruti Suzuki (3.86%), TCS Ltd (3.31%), SBI (2.66%), Infosys Tech (2.55%), Grasim Industries (2.43%), RCom (2.31%), ICICI Bank (2.23%), M&M Ltd (1.80%) and Reliance (1.57%).

Gainers from the BSE Sensex pack are Sterlite Industries (5.53%), JP Associates (2.34%), Hindalco (1.56%), Wipro Ltd (1.61%), BHEL (1.54%) and Tata Steel (1.23%).

On the global markets front, the Asian markets that opened before the Indian market, ended mostly higher. Hang Seng, Nikkei 225 and Singapore''s Straits ended higher by 430.06, 107.80 and 22.74 points at 21,241.59, 9,799.60 and 2,634.63 respectively. However, and Seoul Composite lost 0.44 points at 1,598. Meanwhile, markets in China have been closed since 1 October 2009 for National day and Autumn festival celebrations. Trading will resume on 9 October 2009.

European markets, which opened after the Indian market, are trading in green. In Paris the CAC 40 is higher 12.97 points at 3,783.18, in Frankfurt DAX index is trading up 17.72 points at 5,675.36 and in London FTSE 100 is trading higher by 5.10 points at 5,143.08.

The BSE IT index closed lower by (2.74%) or 124.72 points at 4,421.27 as rupee surged against the dollar. Losers are Mphasis Ltd (6.01%), Wipro Ltd (4.28%), Rolta Ind (3.47%), TCS Ltd (3.31%) and Infosys Tech (2.55%).

The BSE Teck index dropped by (1.97%) or 61.28 points at 3,050.51. Losers are Mphasis Ltd (6.01%), Wipro Ltd (4.28%), Rolta Ind (3.47%), TCS Ltd (3.31%) and Infosys Tech (2.55%).

The BSE Oil & Gas index decreased by (1.06%) or 108.47 points at 10,161.20. Losers are Essar Oil Ltd (1.78%), Reliance (1.57%), RNRL (1.47%), Aban Offshore (0.57%) and ONGC Ltd (0.40%).

The BSE Auto index ended lower by (1.03%) or 66.89 points at 6,456.13. Main Losers are Amtek Auto Ltd (4.97%), Maruti Suzuki (3.86%), Excorts Ltd (2.02%), M&M Ltd (1.80%) and Bharat Forge (1.79%).

The BSE Bank index ended down by (0.84%) or 83.03 points at 9,832.47, as SBI (2.66%), ICICI Bank (2.23%), Axis Bank (1.87%), Federal Bank (1.80%) and Allahabad Bank (1.41%) in red.

The BSE Consumer Durable index gained (4.58%) or 158.84 points 3,624.57. Gainers are Titan Ind (7.62%), Gitanjali GE (6.81%), Videocon Ind (4.93%) and Rajesh Export (3.57%).

Grasim Industries lost 2.43%. The company expects its cement business to register a two-fold growth once the proposed merger between Samruddhi Cement and UltraTech is completed. The company believes the restructuring exercise, including the hiving off Grasim cement into Samruddhi, would enable it to increase its financing capabilities for future growth.

Tata Communications ended lower by 3.31%. The company announced that India-based NDTV Convergence Ltd has chosen its LiveBroadcast service, a high-quality, flash-based streaming service, to broadcast three national channels in India two news and one business over the Internet to a global audience.

JSW Steel Ltd gained 1.58% after the company reported 54% rise in crude steel production to 15.39 lakh tonnes units in Q2 September 2009 over Q2 September 2008.
Hindustan Dorr-Oliver Ltd dropped 1.64%, after the company bagged an order worth Rs. 130 crore.

Jindal Saw Ltd gained 2.03% after the company said its board will meet on 15 October 2009 to consider stock split.

Escorts Ltd fell 2.02% despite one of the promoter group companies revoked a portion of shares, which it had pledged earlier.

Larsen & Toubro Ltd lost 0.20% on reports the firm aims to sell its entire 6.9% stake in Mahindra-Satyam soon after the lock in period expires early next week.