Market Commentary
02/09/10 16:21  Post Session Market

 Extending yesterday’s gain, the key Indian bourses closed the day’s trade with marginal gain. The buying interest emerged across CD, FMCG and Bankex space while IT and Teck exhibited selling pressure. After a positive opening, the key benchmark indices traded firm amid strength in the Asian bourses and on the back of splendid upsurge in the overnight U.S markets. During the opening trade, the BSE Sensex marked the day’s high and touched 18,355.84 while the NSE Nifty hit 5,513.95. However, profit booking at higher level across the bourses led the key benchmark indices to come off the day’s high. Today, the BSE Sensex moved in a narrow range and slipped in early afternoon trade as European stocks declined in early trade. The market continued its firm note to close the session with marginal gains. The overall market breadth was positive, as 9 out of the 13 indices ended in green. The BSE Sensex closed above 18,235 mark and NSE Nifty ended above 5,485 level.

Toady, the domestic markets opened the session with firm note tracking positive global cues. In the global markets, the Asian stocks belled the session with modest gains, after Wall Street soared on encouraging manufacturing data. U.S market closed higher on overnight trade as better than expected growth in the country’s manufacturing supported confidence in global economic growth. The Dow Jones Industrial Average rose 254.75 points or 2.54% to 10,269.47, its biggest one-day gain since 7 July 2010 and its fifth-largest one-day gain this year. The Standard & Poor''s 500 Index added 30.96 points, or 2.95% to 1,080.29. The Nasdaq Composite Index gained 62.81 points, or 2.97% to 2,176.84. Back home, the key domestic indices managed to remain firm and closed the day’s trade above the base line with positive mark.

Among the Sensex pack, 18 stocks ended in green and 12 in red. The overall market breadth was positive as out of total 3,055 stocks traded on BSE, 1848 stocks advanced whereas 1085 stocks declined and 122 stocks are unchanged.

The BSE Sensex closed high by 32.44 points or (0.18%) at 18,238.31 while NSE Nifty ended up by 14.30 points or (0.26%) at 5,486.15. BSE Midcap closed with a profit of 59.97 points or (0.78%) at 7,783.90 while BSE Smallcap closed with a gain of 107.77 points or (1.11%) at 9,820.62. The BSE Sensex touched intraday high of 18,355.84 and intraday low of 18,215.28.

Gainers from the BSE Sensex pack were – Jaiprakash Asso (4.32%), Sterlite Inds (2.59%), Tata Power (1.67%), HDFC (1.53%), HDFC Bank (1.46%), ITC (1.20%), Tata Steel (1.06%) and HUL (0.86%).

Losers from the BSE Sensex pack were – Hero Honda (3.35%), TCS (1.59%), BHEL (1.07%) and Bharti Airtel (0.96%).

On the economic front, backed by the high revenue receipts from the auction of 3G spectrum, the central government has managed to cut down its fiscal deficit by 42 % to Rs. 90,915 crore in April-July of current financial year as against a year ago period.
As per the data released by World Trade Organization (WTO) states that the world trade continued to rebound strongly in the first half of 2010, rising by more than a quarter from year-ago levels, with emerging economies showing particularly powerful export growth.

Besides, the government corrected the first-quarter economic growth rate number as measured by market transactions in less than 32 hours. The Central Statistical Organisation (CSO) almost tripled the initially estimated growth on the demand side to 10%, from 3.7% announced on Tuesday, following a raise in private consumption, government expenses and investments. The revision strengthens the belief that India may grow at more than 8.5% in the fiscal year.

Meanwhile, in order to map a clean road on the areas such as service tax, the high level of arrears and amounts locked in litigation and adjudication, today Mr. Pranab Mukherjee, Finance Minister of India has asked commissioners of the income tax department and customs to focus in these areas.

On the global markets front, the Asian markets that opened before the Indian market, ended in green. Nikkei 225 jumped 1.52% at 9,062.84, Shanghai Composite surged 1.25% at 2,655.78, Hang Seng gained 1.19% at 20,868.92, Taiwan Weighted rose 0.69% at 7,720.82 and Seoul Composite inched-up 0.63% at 1,775.73. While, Jakarta Composite slipped 0.42% at 3,122.15.

European markets, which opened after the Indian market, are trading in green. Key benchmark indices like – CAC 40 is trading higher by 0.12% at 3,628.21, FTSE 100 is trading high by 0.11% at 5,372.40 and in Frankfurt DAX index is trading up by 0.05% at 6,086.99.

The BSE CD index was at 5,819.92 up by 63.52 points or by (1.10%). The main gainers were Gitanjali Gems (3.68%), Bajaj Elect (2.97%), Blue Star (2.11%) and Titan Inds (1.41%).

The BSE FMCG index was at 3,452.58 up by 27.19 points or by (0.79%). The main gainers were Mcleod Russel (3.26%), Nestle India (2.35%), ITC (1.20%), HUL (0.86%) and Dabur India (0.59%).

The BSE Bankex index was at 12,448.52 up by 97.44 points or by (0.79%). The main gainers were IDBI Bank (3.46%), Axis bank (2.84%), Union Bank (2.38%), BOB (1.78%), HDFC Bank (1.46%), BOI (1.36%) and ICICI Bank (0.83%).

The BSE IT index was at 5,446.72 down by 36.62 points or by (0.67%). The main losers were Patni Computer (2.06%), TCS (1.59%) and Infosys (0.90%).

The BSE Teck index was at 3,428.60 down by 22.20 points or by (0.64%). Sterlite Tech (5.10%), Patni Computer (2.06%), TCS (1.59%), TV Eighteen (1.25%), GTL Infra (1.20%), Idea Cellular (1.04%) and Bharti Airtel (0.96%) were the main losers.

On the corporate front, Bajaj Auto gained 1.28 %, after the company recorded its highest ever monthly sales in August 2010.

EIH rose 3.62%, after Reliance Industries bought an additional 0.68% in EIH, raising its holding to 14.8% in hotel chain.

GAIL India fell 1.97%, on turning ex-dividend for a dividend of Rs 5.50 per share for the year ended March 2010.
02/09/10 12:26  Mid Session Market

 The leading Indian indices at this mid-session are trading range bound with positive bias taking optimistic cues from the Asian peers. The up move was led by CD, Auto and Metal space. In the global markets, the Asian markets are trading in green after Wall Street soared on encouraging manufacturing data. The U.S markets closed higher on overnight trade as better than expected growth in the country’s manufacturing supported confidence in global economic growth. Back home, extending yesterday’s rally, today the domestic markets opened the day’s trade in positive note. Besides, the government will unveil data on wholesale price indices for the year through 21 August 2010. On the sectoral front – CD index up by (1.48%) and Auto up by (1.02%) are witnessing most of the buying interest. The broader market indices are trading in positive with BSE Mid Cap and Small Cap posting gain of 1.01% and 1.32% respectively. The key benchmark indices are currently trading in positive with BSE 30-share Sensex above the 18,285 mark while Nifty is above the 5,490 mark.

At 12.20 PM BSE SENSEX was trading at 18,285.28 up by 79.41 points or (0.44%) and the NSE Nifty was trading at 5,493.85 up by 22.00 points or (0.40%).

The BSE MIDCAP was at 7,801.90 up by 77.97 points or by (1.01%) and the BSE SMLCAP was at 9,841.28 up by 128.43 points or by (1.32%).

On the economic front, the government corrected the first-quarter economic growth rate number as measured by market transactions in less than 32 hours. The Central Statistical Organisation (CSO) almost tripled the initially estimated growth on the demand side to 10%, from 3.7% announced on Tuesday, following a raise in private consumption, government expenses and investments. The revision strengthens the belief that India may grow at more than 8.5% in the fiscal year.

Meanwhile, in order to map a clean road on the areas such as service tax, the high level of arrears and amounts locked in litigation and adjudication, today Mr. Pranab Mukherjee, Finance Minister of India has asked commissioners of the income tax department and customs to focus in these areas.

On the corporate front, with a perspective to expand the presence, Cinemax India Ltd. is planning to add 45 screens every year.

Tata Chemicals Ltd. said the company is planning to establish a 2nd water purifier unit with an investment of around Rs. 50 crore.

At present, the market breadth indicating the overall health is positive with 1,977 stocks advancing, 810 shares declining and 83 stocks are left unchanged. The overall market breadth is positive, as 11 out of 13 sectoral indices are trading in green.

Gainers from the Sensex Pack till now are – Jaiprakash Asso (3.55%), Sterlite Inds (2.87%), Tata Power (1.91%), HDFC Bank (1.69%), Tata Motors (1.41%), Maruti Suzuki (1.16%) and ACC (0.93%).

The BSE CD index was at 5,841.51 up by 85.11 points or by (1.48%). The main gainers were Gitanjali Gems (3.48%), Titan Inds (2.02%), Rajesh Exports (1.58%), Blue Star (1.50%) and Bajaj Elect (0.93%).

The BSE Auto index was at 8,928.49 up by 90.44 points or by (1.02%). The main gainers were Apollo Tyres (8.76%), Exide Inds (4.60%), MRF (4.34%), Amtek Auto (3.41%), Tata Motors (1.47%), Bajaj Auto (1.20), Maruti Suzuki (1.16%) and Bharat Forge (0.74%).

On the global markets front, Asian bourses are currently trading in green. Nikkei 225, Straits Times, Hang Seng, Taiwan Index, KOSPI and Shanghai Composite are trading in positive with a gain of 135.82, 11.80, 262.28, 52.57, 11.04 and 32.54 points respectively.
02/09/10 08:48  FII Activity on 1-9-2010

 The FIIs on Wednesday stood as net buyer in equity while net seller in debt. Gross equity purchased stood at Rs 3,180.3 Crore and gross debt purchased stood at Rs 756.5 Crore, while the gross equity sold stood at Rs 2,641.9 Crore and gross debt sold stood at Rs 2,129.5 Crore. Therefore, the net investment of equity and debt reported were Rs 538.4 Crore and Rs (1,373.0) Crore respectively.
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