Post Session Commentary - June 11 2009

Indian market ended the highly volatile session marginally below the dotted line on profit booking after previous session’s gains. Domestic bourses were unable to sustain in either direction. Positive European markets contributed a bit to the recovery during the trading. However, most of the Asian stocks ended lower, which led selling pressure in the domestic bourses. Further, the inflation for week ended May 30 came in at 0.13% against 0.48% a week ago.
The market opened on positive note and slipped lower soon after start on profit taking after a sharp rally in the yesterday’s trade. Besides, cues from the global markets were mixed. Asian stocks were marginally up during early trade and the US stock markets on Wednesday ended lower after a jump in oil prices and sharp rise in lending rates. In addition, the overall trade deficit in US widened to $29.2 billion in April from $28.5 billion in March. Moreover, the April figure was a bit above the first quarter average, so it will factor negatively into second quarter GDP forecasts. Further, domestic market turned volatile and was swinging up and down during the trading session. However, benchmark indices tried to recover and managed to get back strength but were unable to hold the momentum and again slipped into negative before closing lower as selling pressure witnessed on key stocks. BSE Sensex ended around 15,400 level and NSE Nifty below 4,650 mark. From the sectoral front, most of the selling was observed in IT, PSU, Oil & Gas, Capital Goods, Power and Consumer Durables stocks. Mid Cap and Small Cap stocks also remained out of favour today. However, Metal, Auto and FMCG stocks remained in limelight as witnessed most of buying from these baskets.
Among the Sensex pack 18 stocks ended in red territory and 12 in green. The market breadth indicating the overall health of the market remained negative as 1768 stocks closed in red while 967 stocks closed in green and 58 stocks remained unchanged in BSE.
The BSE Sensex closed lower by 55.34 points at 15,411.47 and NSE Nifty ended down by 17.55 points at 4,637.70. BSE Mid Caps and Small Caps closed with losses of 11.92 and 55.98 points at 5,347.58 and 6,150.44 respectively. The BSE Sensex touched intraday high of 15,568.74 and intraday low of 15,240.73.
Losers from the BSE Sensex pack are ONGC Ltd (4.01%), JP Associates (3.96%), ACC Ltd (3.84%), BHEL (3.46%), SBI (3.44%), Infosys Tech (2.87%), Wipro Ltd (2.18%), Reliance Infra (2.10%), Tata Power (1.74%), HUL (1.68%) and Maruti Suzuki (1.33%).
Gainers from the BSE Sensex pack are Hindalco (7.92%), M&M Ltd (6.18%), Sterlite Industries (5.82%), HDFC Bank (3.85%), Tata Steel (2.90%), NTPC Ltd (2.62%), Tata Motors (2.49%) and Bharti Airtel (2.34%).
India''s wholesale price index dropped to 0.13% for the week ended May 30 2009, as compared to the 0.48% of the previous week. The annual inflation rate was 9.32% during the corresponding week of the previous year. Inflation slipped to three decade low despite rise in prices of prices of essential food items like pulses, fruit and vegetables, spices and eggs.
On the global markets front the Asian markets which opened before the Indian market, ended mixed. Shanghai Composite, Nikkei 225 and Straits Times index ended lower by 18.93, 10.16 and 9.41 points at 2,797.32, 9,981.33 and 2,381.81 respectively. However, Hang Seng and Seoul Composite closed up by 5.37 and 4.51 points at 18,791.03 and 1,419.39 respectively.
European markets which opened after the Indian market are trading in green. In Frankfurt the DAX index is trading higher by 27.58 points at 5,078.76 and in London FTSE 100 is trading up by 8.31 points at. 4,445.06.
The BSE IT index decreased by (2.58%) or 87.69 points to close at 3,305.23. Main losers are Financ Tech (5.63%), Patni Computer (5.29%), Oracle Fin (4.16%), HCL Tech (3.84%) and NIIT Ltd (3.71%).
The BSE PSU ended down by (1.84%) or 158.75 points at 5,451.96. Losers are Canara Bank (5.48%), BPCL (5.07%), St Trade Corp (4.70%), HPCL (4.36%) and ONGC Ltd (4.01%).
The BSE Oil & Gas index decreased by (1.65%) or 173.43 points at 10,366.40. BPCL (5.07%), HPCL (4.36%), ONGC Ltd (4.01%), Aban Offshore (3.32%) and Gail India (2.89%) ended in negative territory.
The BSE Capital Goods index lost (1.28%) or 171.91 points to close at 13,294.91. Losers are Gammon Indi (4.99%), Lakshmi Ma W (4.66%), Kalpat Power T (3.65%), BHEL (3.46%) and Bharat Bijli (3.43%).
The BSE Metal index advanced by (2.95%) or 343.81 points at 11,988.77 on emerging domestic demand. Scrips that gained are JSW Steel (8.94%), Hindalco (7.92%), Sesa Goa Ltd (6.66%), Sterlite Industries (5.82%) and Nalco (3.75%).
The BSE Auto stocks also gained (0.84%) or 41.88 points to close at 5,018.98. Major gainers are Apollo Tyre (8.19%), M&M Ltd (6.18%), Tata Motors (2.49%), Amtek Auto (1.56%) and Escorts Ltd (0.64%).
Compucom Software Ltd gained 8.63%. The company has been awarded an order by Rajasthan Council of Elementary Education, under Sarv Shiksha Abhiyan of government, for providing Computer Aided learning Programme (CALP) on the basis of BOOT Model in 836 Govt. Schools of Rajasthan. The Order value is worth Rs 10.68 Crores (Approx).
Tata Tea Ltd declined 3.26% to after consolidated net profit dipped 54.48% to Rs. 700.55 crore despite 12.14% rise in total income to Rs. 4,907.30 crore in the year ended March 2009 over the year ended March 2008
ING Vysya Bank Ltd slides 1.45% after the bank termed media reports of ING looking to sell out of ING Vysya Bank as speculative.
Larsen & Toubro Ltd declined 0.55% on reports that it is selling 8.3% stake in UltraTech Cement to financial investors for around Rs. 757 crore.