Post Session Commentary - Nov 9 2009

Heavy buying across the sectoral indices led the Indian stock market to close the session with strong gains backed by the firm global markets as well as the contours of reforms unveiled by the Prime Minister Manmohan Singh yesterday. The domestic market though opened with decent gains tumbled in the mid session to pare all its initial gains. However, it gained the momentum soon and kept on marching forward till the final closing of the session. The BSE Sensex closed above the 16,490 mark while Nifty just above 4,890 mark. From the sectoral front, the Bankex index (up 4.80%), Consumer Durables index (up 2.44%), Oil & Gas index (up 2.40%), Metal ( up 2.38%) and Realty index (up 2.20%) attracted the investors’ confidence as most buying was witnessed from these basket. The investors’ sentiments were boosted on the back of expectations of acceleration in the pace of economic reforms. The Prime Minister, in his address at the conference of global CEOs and captains of domestic industry yesterday, said to chalk out the road map of country’s progress in various sectors. He said that the government would push through legislative changes that includes insurance sector and also said that there is need to develop long term debt markets, deepen corporate bond market as well as strengthen the insurance and pension sectors, improve futures markets for better price discovery and regulation and also speed up the sale of stakes in state run companies. Above all this, prime minister said that the growth in the next financial year was expected to be more than 7% assuming a normal monsoon.

After a gap up opening, the domestic market surged at the initial stage tracking the firm Asian markets but the market did not able to sustain the momentum and tumbled to pare all its gains but soon gained strength tracking the firm opening of the European markets to touch intraday high. From the global markets, On Friday, the US stock market closed higher marking its fifth straight session gain. The opening was modest and traders were closing watching the non-farm payroll data that recorded job losses of 190,000 in the month of October slightly higher than the expected 175,000. The unemployment rate climbed a 25-year high at 10.2% as against the expected 9.9%. Another economic data was the wholesale report that indicated inventories fell 0.9% in September. On the other hand, the European shares jumped tracking the outcome of G20 meeting where the Group of 20 pledged in order to maintain emergency support for their economies until recovery is assured.

Among the Sensex pack 25 stocks ended in positive territory while 5 stocks in negative territory. The market breadth indicating the overall health of the market remained strong as 1,993 stocks closed in green while 756 stocks closed in red and 47 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 340.44 points or (2.11%) at 16,498.72 and NSE Nifty closed up by 102.25 points or (2.13%) at 4,898.40. The BSE Mid Caps closed higher by 123 points at 6,377.36 and the BSE Small Caps closed up by 154.69 points at 7,325.63. The BSE Sensex touched intraday high of 16,517.42 and intraday low of 16,147.21.

Losers from the BSE Sensex pack are Bharti Airtel (3.88%), Reliance Communication (2.19%), HUL (0.71%), Sterlite Inds (0.45%) and Sun Pharma (0.02%).

Gainers from the BSE Sensex pack are SBI (5.19%), ICICI Bank (4.72%), HDFC bank (4.06%), ITC (3.90%), Tata Power (3.78%), Reliance Inds (3.46%), M&M (3.38%), Grasim Inds (3.04%) and Hindalco Inds (3.02%).

On the global markets front, the Asian markets that opened before the Indian market, closed in green. Hang Seng, Strait Times, Taiwan Weighted, Shanghai Composite, Seoul Composite and Nikkei closed higher by 1.73%, 1.32%, 0.99%, 0.36% and 0.28% at 22,207.55, 2,693.38, 7,536.70, 3,175.58 and 9,808.99 respectively.

European markets, which opened after the Indian market, are trading in positive. In London FTSE 100 is higher by 1.53% at 5,203.89 while in Paris the CAC 40 is up by 1.40% at 3,759.37 and in Frankfurt DAX index is trading higher by 1.42% at 5,566.13.

BSE REALTY index was at 4,081.54 up by 87.86 points or by (2.2%) The main gainers were Sobha Dev up by (17.81%) at Rs.242.45, Orbitco up by (11.17%) at Rs.296.7, Ansal Infras up by (3.89%) at Rs.68.05, Omaxe Ltd up by (3.59%) at Rs.102.3, Parsvnath up by (3.21%) at Rs.115.75.

BSE METAL index was at 14,852.90 up by 345.40 points or by (2.38%) The main gainers were Jai Corp Lim up by (19.98%) at Rs.216.75, Jsw Sl up by (6.93%) at Rs.812.95, Nmdc Ltd up by (6.81%) at Rs.361.45, Steel Author up by (4.76%) at Rs.173.7, Ispat Indust up by (3.05%) at Rs.20.3.

BSE BANKEX index was at 10,155.67 up by 465.18 points or by (4.8%) The main gainers were Indian Overs up by (8.8%) at Rs.118.75, Allahabad Bk up by (7.48%) at Rs.134.4, Canara Bank up by (7.14%) at Rs.381.35, Axis Bank up by (6.63%) at Rs.997.25, Bank Of India up by (5.88%) at Rs.387.3,

BSE FMCG index was at 2,825.02 up by 60.08 points or by (2.17%) The main gainers were Godrej Cons up by (3.98%) at Rs.289.85, I T C Ltd up by (3.9%) at Rs.258.25, Dabur India Ltd. up by (3.07%) at Rs.157.85, Unitd Spr up by (3.06%) at Rs.1106.4, Ruchi Soya up by (2.31%) at Rs.84.05.

BSE CD index was at 3,472.98 up by 82.81 points or by (2.44%) The main gainers were Blue Star L up by (3.32%) at Rs.348.85, Titan Ind. up by (2.99%) at Rs.1337.9, Rajesh Expot up by (2.89%) at Rs.81.75, Videocon Ind up by (0.91%) at Rs.215.1, Gitanjali Ge* up by (0.47%) at Rs.117.15,

BSE OIL&GAS index was at 9,861.12 up by 231.30 points or by (2.4%) The main gainers were Reliance up by (3.46%) at Rs.2024.55, Essar Oil Ltd. up by (3.41%) at Rs.136.65, Cairn Ind up by (2.53%) at Rs.279.8, Bharat Petroleum Corporation L up by (1.5%) at Rs.517.9, Ril Nat Res up by (0.98%) at Rs.72.15.

Tata Steel closed up by 1.93% at Rs. 509.35. The company through its subsidiary, Tata Steel Global Minerals Holdings has entered into Joint Venture Agreement on 6th November 2009 with New Millennium Capital Corp. ("NML") (TSX-V: NML) and LabMag Limited Partnership (through its General Partner) for development of the Direct Shipment Ore (DSO) Project in Canada.

Aurobindo Pharma Limited closed higher by 0.33% at Rs. 819.30. The company announced that it has received final approvals from the US Food & Drug Administration (USFDA) for 2 ANDAs namely Cefotaxime for Injection USP 500mg, 1g, 2g and Cefotaxime for Injection DSP 10g pharmacy bulk pack.

Larsen & Toubro (L&T) closed up by 1.51% at Rs. 1,599.55. The company has secured the BoP contract valued at Rs 1635.30 crore from Madhya Pradesh Power Generation Co. Ltd, (MPPGCL) for 2 x 600 MW MALWA Coal Fired Power Plant, The project was won against stiff competition from domestic BoP bidders.