Market Commentary 03/07/09 16:40  Post Session Market  Indian market rebounded from initial lows to end the day with decent gains after Railway Minister Mamata Bannerjee presented the populist Railway Budget for 2009-2010. Market, overlooked the unfavorable cues from the market all over the world as she had promised to attend the concerns of average passengers. Consequently, the rail budget mainly focused on passenger’s amenities with introduction of new trains. In addition, she announced a number of new initiatives including a plan to develop important stations with world-class amenities amid keeping freight rates and passenger fare unchanged. Notably, the Union Budget 2009-2010 will be presented on Monday, 6 July 2009. BSE Sensex ended above 14,900 level and NSE Nifty above 4,400 mark. The market opened on negative note tracking unfavorable cues from the global markets. The US stocks markets on Thursday ended with huge losses on the back of worse than expected Non-farm payroll job losses. The selling pressure erupted after the news of the June Nonfarm Payrolls report, which indicated that 467,000 jobs were lost in the month. Though, domestic market gained some ground and recovered from initial lows with recovery in some Asian stocks. Further, the benchmark indices were hovering near the dotted line till mid session with a bit of volatility. Going ahead, stocks made sharp turnaround during afternoon trade and maintained upward movement till end as Railway Budget for current fiscal cheered the market. From the sectoral front, all indices ended in positive. Among those, Bank, Pharma, Capital Gooda, Power, Oil & Gas, Realty and PSU stock witnessed most of the buying from these baskets. Mid Cap and Small Cap stocks also followed the same trend. Union Railway Minister Mamata Banerjee today (3rd July 2009) presented the Railway Budget for current fiscal 2009-2010. This was her first rail budget for the newly constituted United Progressive Alliance. In her speech she told to focus on passenger amenities, safety and punctuality, to develop 50 stations with international facilities, depute at least one doctor in long distance trains, etc. Several new trains are planned to be started with objective to the increase in frequency of trains in key routes. ‘Turant’ trains will be introduced, which will be non-stop point-to-point non-air conditioned trains. Besides, ‘Yuva’ trains for young generation will also be introduced. In addition, Minimum Tatkal fee has been reduced from Rs 150 to Rs 100. Tatkal fee will be a percentage of the fair. Further, there is also plan to set up a 1000 MW power plant. Among the Sensex pack 25 stocks ended in green territory and 5 in red. The market breadth indicating the overall health of the market remained positive as 1341 stocks closed in green while 1263 stocks closed in red and 82 stocks remained unchanged in BSE. The BSE Sensex closed higher by 254.56 points at 14,913.05 and NSE Nifty ended up by 75.40 points at 4,424.45. BSE Mid Caps closed with gains of 42.95 and 24.71 points at 5,187.22 and 5,824.95 respectively. The BSE Sensex touched intraday high of 14,945.85 and intraday low of 14,499.74. Gainers from the BSE Sensex pack are HDFC (7.74%), Tata Steel (4.32%), M&M Ltd (3.59%), Reliance Infra (3.17%), ICICI Bank (3.05%), JP Associates (3.03%), SBI (2.94%), L&T Ltd (2.82%), NTPC Ltd (2.25%), Tata Motors (2.11%), Bharti Airtel (1.64%), BHEL (1.50%) and Tata Power (1.47%). Losers from the BSE Sensex pack are Herohonda Motors (1.08%), Hindalco (0.95%), Sterlite Industries (0.74%), RCom (0.24%) and ITC Ltd (0.03%). On the global markets front the Asian markets which opened before the Indian market, ended mixed. Shanghai Composite, Hang Seng and Seoul Composite closed up by 28.11, 25.35 and 8.56 points at 3,008.37, 18,203.40 and 1,420.04 respectively. However, Nikkei 225 and Straits Times index ended lower by 60.08 and 21.07 points at 9,816.07 and 2,299.75 respectively. European markets, which opened after the Indian market, are trading in red. In Frankfurt the DAX index is trading lower by 2.87 points at 4,715.62 and in London FTSE 100 is trading down by 3.53 points at. 4,230.74. The BSE Bank stocks gained (2.19%) or 181.63 points to close at 8,459.70 on hopes of financial sector reforms in the forthcoming budget. Major gainers are Punjab National Bank (3.94%), Oriental Bank of Commerce (3.30%), Union Bank (3.28%), ICICI Bank (3.05%) and SBI (2.94%). The BSE Capital Goods index jumped (1.90%) or 242.75 points to close at 13,013.06 on hopes the government may boost spending on the infrastructure sector in the upcoming Budget. Main gainers are Jyoti Struct (5.00%), L&T Ltd (2.82%), Thermax Ltd (2.64%), Suzlon Energy (2.40%) and Everest Kanto (2.22%). The BSE Power index ended up by (1.84%) or 53.04 points at 2,930.23. Gainers are Lanco Infra (4.38%), GVK Power (3.96%), Reliance Infra (3.17%) and Power Grid (2.69%). The BSE Pharma index advanced by (1.80%) or 64.67 points to close at 3,654.91. Gainers are Glenmark Pharma (7.90%), Cipla Ltd (4.77%), Ranbaxy Lab (3.53%), Aurobindo Pharma (3.16%) and Glaxosmith (2.25%). The BSE Realty index gained (1.18%) or 40.05 points at 3,435.23. Scrips that gained are Anant Raj (4.96%), Housing Dev (2.74%), Pheonix Mill (1.94%), Indiabull Real (1.83%) and Unitech Ltd (1.52%). The BSE Oil & Gas index increased by (0.96%) or 91.24 points at 9,597.26. RNRL (6.84%), HPCL (3.50%), Aban Offshore (2.49%), IOC Ltd (2.41%) and Gail India (1.87%) ended in positive territory. NTPC Ltd gained 2.25% on reports it is in talks with Japan Bank for International Cooperation for a loan of $500 million for energy-efficient power projects. Also, it witnessed gains after Railway budget proposes 1,000 MW power plant in a tribal area in Andhra Pradesh. Sun Pharmaceutical Industries Ltd. increased by 0.42%. The company announced receipt of a tentative approval from USFDA for Sun Pharma''s Abbreviated New Drug Application (ANDA) for generic Optivar, azelastine ophthalmic solution, 0.05%. Orchid Chemicals & Pharmaceuticals Ltd (Orchid) gained 0.37%. The company has received approval from die US FDA for its ANDA (Abbreviated New Drug Application) for Amlodipine Besylate Tablets, 2,5 mg, 5 mg and 10 mg. Ranbaxy Laboratories ended up by 3.53%. The drug maker has received US health rulators approval for oral solution Oxcarbazepine, used in treatment of epilepsy and bipolar disorder. Cairn India Ltd shrunk 2.07% to after crude oil prices slumped nearly 4% on the New York Mercantile Exchange on Thursday, 2 July 2009. JSW Steel Limited dropped by 0.25%. The company posted a 45% growth in crude steel production in Q1 FY 2009-10. The growth in rolled products in flat and iong products was 47% and 103% respectively. 03/07/09 12:42  Mid Session Market  The markets after a sharp recovery from the early lows, has maintained their upward move and are now trading higher. The buying momentum continued among the Power, Capital Goods, Pharma, Consumer Durables and Banking stocks. However, IT, FMCG and Metal stocks are still reeling under pressure. The broader market indices are also trading higher. The BSE Sense is now trading over the 14,700 mark and the NSE Nifty above the 4,350 mark. Union Railway Minister Mamata Bannerjee is presenting the Railway Budget for 2009-2010 today. In her speech she told to focus on passenger amenities, safety and punctuality, to develop 50 stations with international facilities, depute at least one doctor in long distance trains, etc. HDFC reported the top gainer from the BSE Sensex pack, as it is trading higher by (2.98%) at Rs. 2,472 while Infosys Technologies reported the top loser trading down by (1.67%) at Rs. 1,765.90. The overall market breadth is negative as 1148 stocks are advancing while 1160 stocks are declining and the 104 stocks remain unchanged on BSE. At 12.31 pm, BSE Sensex was at 14,722.43 up by 63.94 points and the NSE Nifty was at 4,368.80 up by 19.95 points. The BSE Mid cap is trading higher by 14.31 points at 5,158.58 and the BSE small Cap grew by 12.20 points to trade at 5,812.44. NTPC is in talks with Japan Bank for International Co-operation (JBIC) to raise ‘green funds’ for its supercritical and ultra-supercritical power projects. The stocks is now trading higher by (1.92%) at Rs. 204. Ranbaxy Laboratories, the drug maker has received US health rulators approval for oral solution Oxcarbazepine, used in treatment of epilepsy and bipolar disorder. The stocks is now trading higher by (3.74%) at Rs.251.10. BSE Capital Goods index surged by 154.23 points to 12,924.54. The main gainers are Jyothi Structure (5%), Everest Kanto (3.86%), BEML (2.19%), BHEL (1.62%), Alstrom Project (1.43%) and L&T (1.22%). BSE Bankex index is trading higher by 52.40 points at 8,330.47. The main gainers are AXIS Bank (2.27%), SBI (1.40%), PNB (1.23%), Bank of Baroda (1.16%), Bank of India (1.13%) and Yes Bank (1.02%). BSE Oil & Gas index inclined by 10.17 points to 9,516.19 as HPCL (1.70%), RNRL (1.48%), BPCL (1.26%), Gail India (1.10%), Indian Oil (0.76%) and Reliance Industries (0.34%) are trading in positive. BSE Metal index slipped marginally by 6.85 points to 11,237 as Jai Corp (2.05%), Sesa Goa (2.50%), Jindal Saw (1.60%), Gujarat NRE (1.50%), Hindalco Industries (1.01%) and NMDC (1.35%) are trading lower. BSE Realty index advanced by 22.47 points to 3,417.65 as Anant Raj Industries (4.96%), Phoenix Mill (2.69%), Penland Ltd. (2.06%), India Bull Real (1.32%), Mahindra Life (1.27%) and Sobha Developers (0.83%) are trading higher. BSE IT index decreased by 34.36 points to trade at 3,284.98 as NIIT Ltd. (2.22%), Infosys Technologies (1.72%), Tech Mahindra (1.08%), Mphasis (0.60%) and Financial Technologies (0.54%) are trading in red. BSE Auto index is trading higher by 24.89 points at 4,598.87. The major gainers are Mahindra & Mahindra (1.76%), Bajaj Auto (1.16%), Tata Motors (0.92%), Ashok Leyland (0.33%) and Maruti Suzuki (0.16%). BSE Power index grew by 41.67 points to 2,918.86 as Power Grid (2.69%), Tata Power (2.30%), GVK Power (2.04%), NTPC (1.90%), Suzlon Energy (1.49%) and Torent Power (0.92%) are trading lower. On the global markets front, the Asian markets are trading mixed as the Shanghai Composite and Seoul Composite index are trading higher by (0.71%) and (0.61%) respectively. While Hang Seng, Nikkei 225 and Straits Times index are trading down by (0.05%), (0.61%) and (0.77%). 03/07/09 09:41  Pre Session Market  Today domestic markets are likely to open negative as the US markets have closed with huge losses on the back of disappointing Non-Farm unemployment data. The Asian markets have also opened with blood bath exuding signs of weakness at broader level. In the domestic arena the Railway budget to be announced today will be the head line in news and traders would take safer positions ahead of the Union Budget to be announced on Monday July 6. On Thursday, domestic markets closed flat. The trading started with a subdued note on mixed cues from Asian markets as well as due to cautiousness amongst local traders ahead of the Union Budget due on Monday, July 6. The Economic survey that called for sweep reforms hardly pumped the traders’ sentiments. There was lack of buying effort across the broader level as investors are desperately waiting for the real budget stimulus. The weak opening of the European markets further pulled the market sentiments as the domestic benchmark indices kept gyrating throughout the day. Sectors like Metal, PSU, Realty and HC gained by 3.26%, 1.95%, 1.55% and 0.84% respectively. BSE Midcap and Smallcap managed to close with gains of 0.33% and 0.74% respectively. There could be a range bound trade today with negative bias. The BSE Sensex closed up by 13.02 points at 14,658.49 and NSE Nifty ended up by 7.95 points at 4,348.85. BSE Mid Caps closed with gains of 16.76 points and 42.82 points at 5,144.27 and 5,800.24 respectively. The BSE Sensex touched intraday high of 14,764.35 and intraday low of 14,469.69. On Thursday, the US Markets ended with huge losses on the back of worse than expected Non-farm payroll job losses. The session started with stocks diving sharply lower amidst expectations of disappointing jobs report. The selling pressure erupted after the news of the June Nonfarm Payrolls report, which indicated that 467,000 jobs were lost in the month. The number was very huge as against the May job losses of 322,000 and much beyond the expected 365,000 losses. The national unemployment data stands at 9.5% parallel with the expected 9.6%.On the other hand May factory orders inclined by a surprising 1.2% better than the expected 0.9%. The employment data shadowed the May factory orders news and therefore sellers became emboldened till the end of the trading session. The S&P 500 plummeted below the psychological number of 900 level. US light crude oil for August Futures delivery declined by 3.7% at $66.73 per barrel on the New York Mercantile Exchange. The Dow Jones Industrial Average (DJIA) slipped by a drastic 218.94 points at 8,285.12 the NASDAQ Composite (RIXF) index lost 49.20 points at 1,796.52 and the S&P 500 (SPX) declined by 26.18 points at 897.15. Today major stock markets in Asia are trading in negative. Hang Seng is low by 97.53 points at 18,080.52. Shanghai Composite is up by 8.04 points at 3,068.298. Japan''s Nikkei is trading down by 122.45 points at 9,753.70. Strait Times is low by 20.48 points at 2,300.34. Seoul Composite is low by 5.65 points at 1,405.83 and KLSE Composite is flat at 1,078.71. Indian ADRs ended in red on Thursday. In the IT space, Infosys was down 3%, Patni Computers was down 3.07% while Satyam Computers was up 2.77% and Wipro ended up 0.43%.In the banking space, ICICI Bank was down 2.86% and HDFC Bank was down 2.07%. In the telecom space, Tata Communication was down 2.82% and MTNL was down 2.04%. In other sectors, Tata Motors was down 2.82%, Dr Reddy''s Labs was down 1.17% while Sterlite Industries was up 0.47%. The FIIs on Thursday stood as net buyers in equity and debt. The Gross equity purchased stood at Rs 1,448.60 Crore and gross debt purchased stood at Rs 225.80 Crore, while the gross equity sold stood at Rs 1,284.90 Crore and gross debt sold stood at Rs 41.40 Crore. Therefore, the net investment of equity and debt reported were Rs 163.70 Crore and Rs 184.30 Crore respectively. On Thursday, the partially convertible rupee ended at Rs 47.94/95, 5 paise weaker as compared to its previous close at 47.89/90. The green back has showed a relative strength as other currencies across the world. On BSE, total number of shares traded were 37.35 Crore and total turnover stood at Rs 5,990.73 Crore. On NSE, total number of shares traded was 84.80 Crore and total turnover was Rs 17,751.14 Crore. Top traded volumes on NSE Nifty – Unitech with total volume traded 44874603, followed by Suzlon Energy with 41203690, Tata Steel with 17134163, DLF with 15020544 and SAIL with 11287767. On NSE Future and Options, total number of contracts traded in index futures was 760367 with a total turnover of Rs 15,808.29 Crore. Along with this total number of contracts traded in stock futures were 590708 with a total turnover of Rs 17,099.03 Crore. Total numbers of contracts for index options were 839717 with a total turnover of Rs 18,779.7 Crore and total numbers of contracts for stock options were 38600 and notional turnover was Rs 1,231.53 Crore. Today, Nifty would have a support at 4,276 and resistance at 4,382 and BSE Sensex has support at 14,415 and resistance at 14,812. Close