Post Session Commentary - Oct 29 2009

The Indian market closed in the negative territory for the second consecutive session tracking the weakness in the global markets and a rise in the inflation figure that weighed on the investors’ sentiments. The expiry of the October derivatives contract scheduled today also led the investors to be calculative to book their positions. The concerns about the sooner than expected rise in the interest rates after RBI raised its inflation forescast, prompt the investors to be bit cautious to book further positions. The Asian stocks slipped for a third straight day tracking the weak cues from the US markets where the weakness in US housing market triggered the fears about the health of the global recovery. The unexpected fall in new home sales in US in September for the first time since March fueled the fears. Moreover, the volatility of the rupee against the dollar in the past few days has fueled the concerns that there may be more losses for the corporate sector on hedging. The BSE Sensex closed below the 16,300 mark while Nifty just below 4,830 mark. From the sectoral front, the Realty stocks (down 6.40%) were the major laggards as most selling is witnessed from this basket.
The market opened on a weak note tracking eth weak cues from the global markets and kept on trading in the negative territory for most part of day but some buying at the lower level led the market to pare some of its losses but heavy selling in the final hours led the market to close on a disappointment note. The volatility during the seesion was high as the traders roll over positions in the derivatives segment ahead of the expiry of the October 2009 contracts, scheduled today. From the global markets, The US markets closed negative on Wednesday ahead of advance third quarter GDP reading and weak home sales data. Stiff sell off across the globe certainly didn''''t left any room for bulls, not did disappointing home sales data, which for September fell 3.6% month-over-month to an annualized rate of 402,000 units, over 440,000 units that was widely expected.
The IMF said on Thursday raised its outlook for growth in Asia and the economies of India, China and Australia were recovering rapidly and advised the Asia Central banks not to raise the interest rates.
The wholesale price index of India surged 1.51 percent in the 12 months ended October 17, 2009 more than previous week''''s annual rise of 1.21 percent, as per the government data on Thursday. However, the annual inflation rate was 10.82 percent during the corresponding week of 2008. On Tuesday, Reserve Bank of India (RBI) raised the WPI inflation projection to 6.5 percent with an upside bias by March 2010 end from 5.0 percent earlier.
Among the Sensex pack 22 stocks ended in negative territory and 8 stocks in positive territory. The market breadth indicating the overall health of the market remained weak as 1,849 stocks closed in red while 822 stocks closed in red and 68 stocks remained unchanged in BSE.
The BSE Sensex closed lower by 230.77 points or (1.42%) at 16,052.72 and NSE Nifty closed down by 75.60 points or (1.57%) at 4,750.55. The BSE Mid Caps closed lower by 120.10 points at 6,046.79 and the BSE Small Caps closed with losses of 92.69 points at 7,113.84. The BSE Sensex touched intraday high of 16,264.09 and intraday low of 15,993.83.
Losers from the BSE Sensex pack are DLF (6.81%), Reliance Communication (6.45%), ICICI Bank (4.81%), JP Associates (4.10%), Bhel (3.81%), Tata Steel (3%), Hindalco (2.70%) and Maruti Suzuki (2.58%).
Gainers from the BSE Sensex pack are M&M (3.93%), ONGC (2.56%), Sun Pharma (1.92%), HUL (1.60%) and Tata Power (0.48%).
On the global markets front, the Asian markets that opened before the Indian market, closed in red. Taiwan Weighted, Shanghai Composite, Hang Seng, Nikkei and Seoul Composite closed lower by 2.37%, 2.34%, 2.28%, 1.83% and 1.48% at 7,355.69, 2,960.46, 21,264.99, 9,891.10 and 1,585.85 respectively.
European markets, which opened after the Indian market, are trading in green. In Paris the CAC 40 is up by 0.07% at 3,666.22, in Frankfurt DAX index is trading higher by 0.09% at 5,501.08 and in London FTSE 100 is higher by 0.02% at 5,081.50.
BSE REALTY indexwas at 3,820.46 down by 261.18 points or by (6.4%) The main losers were Indbul Real down by (9.3%) at Rs.239.4, Unitech Ltd down by (7.07%) at Rs.80.85, Dlf Ltd down by (6.81%) at Rs.375.6, Housing Dev down by (5.31%) at Rs.329, Parsvnath down by (4.31%) at Rs.104.4.
BSE METAL index was at 13,904.73 down by 368.75 points or by (2.58%) The main losers were Ispat Indust down by (5.28%) at Rs.19.75, Jindal Steel down by (4.28%) at Rs.668.8, Nmdc Ltd down by (4.17%) at Rs.300.75, Welsp Guj Sr down by (3.86%) at Rs.256.2, Jsw Sl down by (3.59%) at Rs.716.7.
BSE BANKEX index was at 9,290.23 down by 243.43 points or by (2.55%) The main losers were Bank Of India down by (12.33%) at Rs.357.8, Indian Overs down by (8.22%) at Rs.106.6, Allahabad Bk down by (5.65%) at Rs.117.65, Kotak Bank down by (5.29%) at Rs.717.15, Icici Bank L down by (4.81%) at Rs.771.25.
BSE FMCG index was at 2,825.93 up by 18.53 points or by (0.66%) The main gainers were Godrej Cons up by (2.37%) at Rs.276.8, Dabur India Ltd. up by (2.02%) at Rs.153.95, Tata Tea Ltd up by (1.86%) at Rs.856.15, Hind Uni Lt up by (1.6%) at Rs.283.15, Marico Ltd up by (0.82%) at Rs.98.55.
BSE OIL&GAS index was at 9,705.54 down by 68.15 points or by (0.7%) The main losers were Indian Oil C down by (50.93%) at Rs.315.25, Ril Nat Res down by (6.74%) at Rs.67.8, Essar Oil Ltd. down by (5.29%) at Rs.135.3, Aban Offsho down by (3.79%) at Rs.1335.4, Cairn Ind down by (2.25%) at Rs.265.15.
BSE IT index was at 4,447.39 down by 80.52 points or by (1.78%) The main losers were Moser Baer down by (4.7%) at Rs.75.05, Patni Comput down by (3.18%) at Rs.453.7, Oracle Fin down by (3.1%) at Rs.2083.2, Mphasis Ltd down by (2.74%) at Rs.665, Aptech Ltd down by (2.56%) at Rs.192.55.
Cairn India Ltd fell 2.25% to close at Rs. 265.15. The company has posted a net profit of Rs 310.90 million for the quarter ended September 30, 2009 as compared to Rs 814.40 million for the quarter ended September 30, 2008.
Colgate Palmolive India Ltd declined 0.19% to close at Rs. 706.45. The company has posted a net profit after tax of Rs 897.00 million for the quarter ended September 30, 2009 as compared to Rs 635.00 million for the quarter ended September 30, 2008.
Oil & Natural Gas Corporation Ltd (ONGC) grew by 2.56% to Rs. 1,165.85. The company has posted a net profit of Rs 50896.40 million for the quarter ended September 30, 2009 as compared to Rs 48084.10 million for the quarter ended September 30, 2008.
Bharat Petroleum Corporation Ltd (BPCL) shot up by 1.62% to Rs. 505.95. The company has posted a net loss of Rs (1587.70) million for the quarter ended September 30, 2009 as compared to net loss of Rs (26252.70) million for the quarter ended September