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Monday, May 18, 2009

Post Session Commentary - May 18 2009


Market trading was halted for the day after benchmark indices triggers final upper limit of 20%. At around 11.55 am, the BSE Sensex touched the highest mark of 14,272.63 with rise of 17.24% and NSE Nifty touched the uppermost level of 4,384.30, which was 19.41% up from previous closing. The rally was backed by the surprised win for the UPA government (lead by 262 seats) in the 15th Lok Sabha election, which brought great cheers for the investors. Market is hopeful as less number of allies will direct to a stable government which will run its track of five years. SEBI, today vide their circular No. SMD/RPD/Policy/Cir-37 dated June 28, 2001 has stipulated that the index based market wide circuit breaker system shall apply at three stages of the index movement either way at 10%, 15% and 20%. Since the indices breached 20% level, there will be no further trading today.

The domestic market opened with a sharp gap and suddenly locked in at upper circuit. Trading had been halted for an hour. The market reopened at 10.55am. The sharp upward rally on Monday was in reaction to UPA’s stunned win at the general elections. The benchmark indices touched the psychological mark of 15% after one hour of halt and trading stopped once again till 11:55am as NSE Nifty hit 15% upper circuit the second 5% filter. Further, market resumed trading at 11:55am (IST) before finally halting the trading as crossed the final upper limit of 20%. On the sectoral front, all indiced ended with huge gains. Among those, most of the buying was seen in Realty, Capital Goods, Bank, Oil & Gas, Power, Metal, PSU and Teck stocks.

Among the Sensex pack all 30 stocks ended in green territory. The market breadth indicating the overall health of the market remained extremely positive as 833 stocks closed in green while 11 stocks closed in red and 2 stocks remained unchanged in BSE.

The BSE Sensex was up by 2,099.21 points at 14,272.65 and NSE Nifty was higher by 636.40 points at 4,308.05. The BSE Mid Cap increased by 276.06 points or 7.25% to 4,083.13 and the BSE Small Cap grew by 218.33 points or 5.10% to 4,497.93.

Gainers from the BSE Sensex pack are BHEL (32.72%), L&T Ltd (29.53%), DLF Ltd (25.82%), ICICI Bank (25.30%), HDFC (23.46%), Reliance (22.87%), RCom (22.74%), Bharti Airtel (22.53%%), Reliance Infra (22.02%), JP Associates (20.91%), SBI (20.76%), Tata Steel (17.60%), Sterlite Industries (16.53%), HDFC Bank (16.48%), Tata Motors (16.05%), Grasim Industries (14.26%), Wipro Ltd (13.83%), Hindalco (13.64%), Tata Power (13.38%) and ONGC Ltd (13.17%).

On the global markets front the Asian markets which opened before the Indian market, are trading mixed. Shanghai Composite, Hang Seng and Straits Times index are trading up by 7.52, 181.27 and 33.56 points at 2,652.78, 16,971.97 and 2,173.34 respectively. However, Nikkei 225 and Seoul Composite trading lower by 226.33 and 5.05 points at 9,038.69 and 1,386.38 respectively.

The BSE Realty index gained (25.37%) or 610.11 points to close at 3,014.98. Gainers are Indiabull Real (38.51%), Unitech Ltd (29.41%), DLF Ltd (25.81%), Housing Development (23.39%), Orbit Co (19.99%) and Parsvnath (19.94%).

The BSE Capital Goods stocks increased by (23.47%) or 2,036.30 points to close at 10,712.65. Major gainers are BHEL (32.72%), L&T Ltd (29.53%), Punj Lloyd (23.20%), Punj Lloyd (22.56%), Areva (20.99%) and Jyoti Struct (19.99%).

The BSE Bank index gained (20.27%) or 1,292.27 points at 7,667.92 hopes falling interest rates will boost lending growth. Scrips that gained are ICICI Bank (25.30%), Bank of Baroda (21.24%), Indian Overseas Bank (21.21%), SBI (20.76%), Yes Bank (20.48%) and Allahabad Bank (17.25%).

The BSE Oil & Gas stocks increased by (19.57%) or 1,665.38 points to close at 10,175. Major gainers are Reliance (22.87%), Aban Offshore (21.20%), Reliance Pet (20.23%), RNRL (19.48%), Essar Oil Ltd (15.46%) and Crompton Greaves (14.78%).

The BSE Power was up by (17.09%) or 378.90 points at 2,595.43. Gainers are BHEL (32.72%), GVK Power (27.89%), Suzlon Energy (22.56%), Reliance Infra (22.02%), GMR Infra (21.08%) and Reliance Power (17.49%).

The BSE Metal index advanced by (16.64%) or 1,310.03 points to close at 9,182.73. Main gainers are NMDC Ltd (19.99%), Steel Authority (19.38%), Ispat Indus (18.55%), Jindal Steel (18.51%), Sesa Goa Ltd (18.37%), Gujarat NRE C (18.35%) and JSW Steel (14.78%).

Tata Steel surged 17.60%. The company has taken major initiatives in retail including doubling of its outlets to 1,000 in the next 2-3 years for its branded products. This is in order to promote the sale of its steel products in the country.