Post Session Commentary - Nov 6 2009

The Indian stock market closed in green tracking the firm cues from the global markets. Heavy buying was witnessed during the trading session and the investors’ sentiments was boosted on the back of some favoring data like better than expected jobless claims data in US that recorded at 5,12,000 down 20,000 from the previous week and better than the expected 5,22,000. The continuing claims came in at 5.75 million, which was inline with the expectations and down from 5.82 million in the previous week. Moreover, the rally across the Asian markets after Australian Central bank increased its economic growth forecasts by more than tripled further boosted the sentiments. Moreover, the Union Cabinet’s approval of listing the state run firms on the stock exchanges, which have a track record of profits in the past three years, also supported the sentiments. The government decided that the proceeds from the equity divestment in State run firms can be utilized for capital expenditure on social sector programmes instead of routing it through the National Investment fund. The BSE Sensex closed above the 16,150 mark while Nifty just above 4,790 mark. From the sectoral front, the PSU index (up 3.91%), Realty index (up 2.81%) and Metal index (up 2.03%) attracted the investors’ confidence as most buying was witnessed from this basket.

After a gap up opening, the domestic market gain some further grounds but the market did not able to sustain the momentum an tumbled to bit to pare some of its gains by the mid session but later gained some strength tracking the firm opening of the European markets. From the global markets, US stock market closed higher on the back of strong quarterly report from Cisco and also better than expected jobless claims data. Cisco reported better than expected top and bottom line results. The maker of networking equipment has reported 19 per cent fall in its net income to $1.79 billion or 30 cents per share during the first quarter ended Oct 24 ’09. Besides, the latest initial jobless claims data gave support to the market to gain grounds.

The European Central Bank has kept its main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 1%, 1.75% and 0.25% respectively at its meeting held on November 5, 2009. The Bank of England also left its main rate at 0.5 percent. The Bank of England (BoE) decided to pump another 25 billion pounds ($41 billion) into its economy on Thursday, taking its quantitative easing (QE) to 200 billion pounds in total, but slowed the pace of the programme.

Among the Sensex pack 19 stocks ended in positive territory while 11 stocks in negative territory. The market breadth indicating the overall health of the market remained strong as 1,944 stocks closed in green while 780 stocks closed in red and 63 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 94.38 points or (0.59%) at 16,158.28 and NSE Nifty closed up by 30.60 points or (0.64%) at 4,796.15. The BSE Mid Caps closed higher by 138.92 points at 6,254.36 and the BSE Small Caps closed up by 157.09 points at 7,170.94. The BSE Sensex touched intraday high of 16,283.86 and intraday low of 16,075.19.

Losers from the BSE Sensex pack are Tata Power (3.84%), HUL (2.12%), Hero Honda (1.98%), ITC (1.53%), Tata Motors (1.06%) and Maruti Suzuki (1.04%).

Gainers from the BSE Sensex pack are JP Associates (4.76%), Tata Steel (3.08%), SBI (3.06%), Sterlite Inds (2.21%), L&T (2.17%), DLF (2.14%), HDFC (1.93%), Sun Pharma (1.78%) and M&M (1.03%).

On the global markets front, the Asian markets that opened before the Indian market, closed in green. Hang Seng, Seoul Composite, Jakarta Composite, Strait Times, Nikkei closed higher by 1.63%, 1.30, 1.18%, 1.10% and 0.74% at 21,829.72, 1,572.46, 2,395.16, 2,658.21 and 9,789 respectively.

European markets, which opened after the Indian market, are trading mixed. In London FTSE 100 is higher by 0.16% at 5,133.95 while in Paris the CAC 40 is lower by 0.15% at 3,703.20, in Frankfurt DAX index is trading down by 0.04% at 5,478.74.

BSE REALTY indexwas at 3,993.68 up by 109.18 points or by (2.81%) The main gainers were Phoenix Mill up by (9.73%) at Rs.178.75, Anant Raj In up by (9.18%) at Rs.134.35, Parsvnath up by (6.05%) at Rs.112.15, Housing Dev up by (5.36%) at Rs.359.9, Orbitco up by (5%) at Rs.266.9.

BSE METAL index was at 14,507.50 up by 289.25 points or by (2.03%) The main gainers were Nmdc Ltd up by (10%) at Rs.338.4, Jai Corp Lim up by (9.98%) at Rs.180.65, Welsp Guj Sr up by (4.75%) at Rs.276.6, Sesa Goa Ltd up by (4.73%) at Rs.312.1, Gujara Nre C up by (3.74%) at Rs.61.

BSE BANKEX index was at 9,690.49 up by 166.65 points or by (1.75%) The main gainers were Yes Bank up by (6.01%) at Rs.253.9, Kotak Bank up by (5.98%) at Rs.760.6, Indus Ind Bk up by (5.33%) at Rs.127.35, Indian Overs up by (4.45%) at Rs.109.15, Bank Of India up by (3.46%) at Rs.365.8.

BSE CG index was at 12,985.81 up by 216.46 points or by (1.7%) The main gainers were Reliance Industrial Infrastruc up by (13.97%) at Rs.947.2, Usha Martin up by (12.02%) at Rs.71.3, Gammon Indi up by (7.94%) at Rs.235.05, Suzlonenergy up by (6%) at Rs.66.25, Beml Ltd up by (4.25%) at Rs.1022.9.

BSE AUTO index was at 6,518.39 down by 4.12 points or by (0.06%) The main losers were Herohonda M down by (1.98%) at Rs.1529.9, Tata Motors down by (1.06%) at Rs.569.55, Marutisuzuki down by (1.04%) at Rs.1473.35, Bajaj Auto down by (0.61%) at Rs.1452.85.

BSE PSU index was at 8,794.80 up by 331.03 points or by (3.91%) The main gainers were M M T C Ltd. up by (20%) at Rs.36146.85, St Trad Corp up by (14.84%) at Rs.354, Dredg Corp I up by (12.18%) at Rs.507.85, Rashtriya Chemicals & Fertiliz up by (11.76%) at Rs.73.65, Hind.Copper up by (10%) at Rs.256.35.

BSE OIL&GAS index was at 9,629.82 up by 76.75 points or by (0.8%) The main gainers were Aban Offsho up by (2.83%) at Rs.1279.35, Hindustan Petroleum Corp. Ltd. up by (1.35%) at Rs.352.15, Ril Nat Res up by (1.13%) at Rs.71.45, Bharat Petroleum Corporation L up by (1.01%) at Rs.510.25, Reliance up by (0.87%) at Rs.1956.75.

BSE IT index was at 4,453.45 up by 12.55 points or by (0.28%) The main gainers were Mphasis Ltd up by (6.92%) at Rs.723.85, Financ Techn up by (6.22%) at Rs.1346.75, Oracle Fin up by (6.06%) at Rs.2185.65, Aptech Ltd up by (4.77%) at Rs.183.3, Niit Ltd up by (2.87%) at Rs.60.85.

Infosys closed lower by 0.24% at Rs. 2,217.80. The company announced that it has teamed up with Oracle through the ''''BPO Powered by Oracle program'''', and is launching a comprehensive managed services platform for multifunction HR through its Infosys Business Platforms offering.

Sun Pharmaceutical surged 1.78% to close at Rs. 1,404.70. The company announced that USFDA has granted approval for an Abbreviated New Drug Application (ANDA) of its subsidiary for generic Acular ®, Ketorolac Trome