Pre Session Commentary - Sep 9 2009

Today domestic markets are likely to open marginally positive. After the IMF’s call of global recession to end in the beginning of 2010, US markets also managed to mark gain in the overnight trade. However in Asian markets, majority of indices have opened with losses as all the stocks are highly valued at this peak level and therefore a lot of cautiousness. In the domestic arena there could be some selling pressures due to weakness in Asian space. During the day trading is likely to trade volatile.

On Tuesday, Domestic market concluded today’s journey in green terrain on significant buying interest led by firm global cues. Asian markets ended with gains and European markets are trading on firm note. In addition, higher US index futures also contributed to the upswing in key benchmark indices. However, market slipped sharply from the day’s high in second half of trading on profit booking, before gathering momentum again. Meanwhile, concerns over a poor monsoon weighed on sentiments to an extent despite revival in monsoon rains in past few days. The BSE Sensex ended above 16,100 level and NSE Nifty closed above 4,800 mark.

The BSE Sensex closed higher by 107.35 points (0.67%) at 16,123.67 and NSE Nifty ended up by 22.35 points or (0.47%) at 4,805.25. BSE Mid Caps and Small Caps closed with losses of 25 and 10.52 points at 5,942.77 and 7,178.95 respectively. The BSE Sensex touched intraday high of 16,232.16 and intraday low of 16,030.56.
On Tuesday, US markets closed positive. The positive cues from majority of overseas markets helped major indices in US record gains. The IMF calls that global recession could end in the beginning of 2010 and G-20''s call for more bank capital. There was broad-based buying and therefore S&P 500 made solid gains in its first trading session of the week, but the broad market benchmark encountered resistance as it approached last week''s highs. Energy stocks and materials stocks led gains for the entire session. They settled 2.6% and 1.5% higher, respectively. Commodity prices were also helped by a weaker U.S. dollar, which fell 1.0% against a basket of major foreign currencies to hit an 11-month low after the U.N. said that the greenback should be replaced by a new global reserve currency.
The Dow Jones Industrial Average (DJIA) closed higher by 56.07 points at 9,497.34. NASDAQ index gained 18.99 points at 2,037.77 and the S&P 500 (SPX) also inclined by 8.99 points to close at 1,025.39 points.

Indian ADRs ended mostly in green. In the IT space, Wipro was up 2.92%, Infosys was up 2.49% and Satyam Computers was up 2.22%. However, Patni Computers ended down 5.38%. In the banking space, ICICI Bank was up 6.61% and HDFC Bank was up 2.66%. In the telecom space, MTNL was up 1.58% while Tata Communication was down 1.09%. In other sectors, Sterlite Industries was up 8.35%, Dr Reddy''s Labs was up 2.01% and Tata Motors was up 7.49%.Today the major stock markets in Asia are trading positive.


The FIIs on Tuesday stood as net buyers in equity and debt. Gross equity purchased stood at Rs 2,952.80 Crore and gross debt purchased stood at Rs 361.30 Crore, while the gross equity sold stood at Rs 1,902.80 Crore and gross debt sold stood at Rs 354.90 Crore. Therefore, the net investment of equity and debt reported were Rs 1,050 Crore and Rs 6.50 Crore respectively.

On Tuesday, Indian Rupee closed at 48.47/48 per dollar, 0.40% stronger than its previous close at 48.66/67. The local currency gained on the back of surge in local stock markets.

On BSE, total number of shares traded were 57.35 Crore and total turnover stood at Rs 7,189.76 Crore. On NSE, total number of shares traded were 109.49 Crore and total turnover was Rs 21,444.52 Crore.

Top traded volumes on NSE Nifty – Unitech with total volume traded 75398105 shares, followed by Suzlon Energy with 47023987, Hindalco with 23662331 shares, DLF with 14236693 shares and Tata Steel with 13208864 shares.

On NSE Future and Options, total number of contracts traded in index futures was 628383 with a total turnover of Rs 14,365.89 Crore. Along with this total number of contracts traded in stock futures were 666274 with a total turnover of Rs 22,169.96 crore. Total numbers of contracts for index options were 1175229 with a total turnover of Rs 28,286.70 Crore and total numbers of contracts for stock options were 79166 and notional turnover was Rs 2,754.40 Crore.

Today, Nifty would have a support at 4,732 and resistance at 4,842 and BSE Sensex has support at 15,782 and resistance at 16,196