Indian Stock Market Commentary : Pre Session Indian Stock Market Headline Date, Aug-07-2009

Today domestic markets are likely to open negative as there are bearish sentiments prevailing across other markets. The US markets closed lower after unimpressive July same stores data. There is hardly any guidance from other markets and therefore one could witness some consolidation happening across domestic markets as well. Markets are likely to trade range bound today.

On Thursday, Domestic markets opened on downbeat note tracking weak cues from global markets. The US stocks markets closed lower on Wednesday following some weaker-than-expected economic reports. The ISM services index for July unexpectedly slipped to 46.4 from 47 in June. Besides, the latest ADP employment report in US indicated that 3.71 lakh jobs were slashed in July. Further, benchmark indices continued to trade weak amid volatility on sustained selling over the counters. However, market managed to gain some ground during afternoon trade tracking gains in European stocks, before slipping again. Going ahead, stocks extended losses and nosedived during final trading backed by strong selling pressure. From the sectoral front, investors off-loaded positions across the sectors. Besides, most of the selling was witnessed in Auto, Realty, Metal, FMCG, Power, Consumer Durables, Capital Goods and IT stocks. BSE Midcap and Smallcap indices also remained under pressure.

The BSE Sensex closed lower by 389.80 points or (2.45%) at 15,514.03 and NSE Nifty ended down by 108.65 points or (2.31%) at 4,585.50. BSE Mid Caps and Small Caps closed with losses of 136.07 and 82.59 points at 5,559.26 and 6,314.79 respectively. The BSE Sensex touched intraday high of 15,969.81 and intraday low of 15,443.22.

On Thursday, US stock markets closed lower. Markets opened with solid gains however the unimpressive data of July same store sales pulled the market sentiments. On the other hand, the smaller-than-expected weekly initial jobless claims tally of 550,000 was positive driving news for the traders. Meanwhile the continuing claims were more-than-expected at 6.31 million, up from the previous week. Traders are also waiting for the Non-farm payrolls data for the month of July that is due to be declared today before the opening bell. In sector specific Financials which were logging gains for the past five consecutive sessions ended with losses of 0.7%. US light crude oil futures for September delivery closed at $71.94 per barrel lower by 0.1% on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) closed lower by 24.71 points at 9,256.26, NASDAQ index declined by 19.89 points to 1,973.16 and the S&P 500 (SPX) closed lower by 5.64 points at 997.08.

Indian ADRs ended in red on Thursday. In the IT space, Satyam Computers was down 6.05%, Infosys was down 2.14%, Patni Computers was down 2.97% and Wipro was down 0.85%. In the banking space, HDFC Bank was down 2.67% and ICICI Bank was down 1.7%. In the telecom space, MTNL was down 2.12% and Tata Communication was down 0.83%. In other sectors, Sterlite Industries was down 5.11%, Dr Reddy''s Labs was down 3.76% and Tata Motors was down 2.84%.

The FIIs on Thursday stood as net sellers in equity and net buyers in debt. Gross equity purchased stood at Rs 1,948.90 Crore, while the gross equity sold stood at Rs 2,429.40 Crore and gross debt purchased stood at Rs 196.90 Crore, while gross debt sold stood at Rs 71.40 Crore. The net investment of equity reported was Rs (480.40) Crore and net debt was Rs 125.50 Crore.

On Thursday, the partially convertible rupee ended at Rs 47.68/69, 0.3% weaker than its previous close at 47.52/53. The rupee lost grounds due to drastic fall in local stock markets.

On BSE, total number of shares traded were 56.78 Crore and total turnover stood at Rs 7,169.11 Crore. On NSE, total number of shares traded were 113.30 Crore and total turnover was Rs 21,070 Crore.

Top traded volumes on NSE Nifty – Unitech with total volume traded 65119620 shares, followed by Suzlon Energy with 35254386, Hindalco with 15388145, DLF with 14618793 and ICICI Bank with 13908696 shares.

On NSE Future and Options, total number of contracts traded in index futures was 959421 with a total turnover of Rs 21,171.56 Crore. Along with this total number of contracts traded in stock futures were 670402 with a total turnover of Rs 21,194.51 crore. Total numbers of contracts for index options were 1241929 with a total turnover of Rs 29,475.34 Crore and total numbers of contracts for stock options were 60942 and notional turnover was Rs 1,977.99 Crore.

Today, Nifty would have a support at 4,478 and resistance at 4,622 and BSE Sensex has support at 15,322 and resistance at 15,610.

Market Reports Headline : Foreign Market

Thursday, the US stocks markets closed lower for the second straight session after a solid start. The major indices opened higher following a smaller-than-expected weekly initial jobless claims, even though continuing claims were more-than-expected. The tech stocks dragged for the entire session as Cisco Systems issued an uninspiring revenue forecast even though it posted better-than-expected quarterly earnings. The financials also gave up their gaining streak and finished 0.7% lower.

The Dow Jones Industrial Average (DJIA) dropped by 24.71 points at 9256.26, NASDAQ index fell 19.89 points to 1973.16 and the S&P 500 (SPX) fell by 5.64 points to close at 997.08 points.

The Monthly same-store sales figures for the month of July were largely unimpressive, but upside guidance from retailers like Gap, Kohl''s, and Macy''s helped push the group up 1.1%.

On the economic front, the initial jobless claims fell more than expected, as it came in at 550,000. However, continuing claims climb more than expected at 6.31 million, up from the previous week.

US light crude oil futures for September delivery closed at $71.84 per barrel down by 0.2% on the New York Mercantile Exchange.

Gold futures for the month of December delivery finished the session lower at $962.90 per ounce down by 0.4% on the New York Mercantile Exchange.

Commodities News Headline: Chilli exports may drop on low demand from Pak

Exporters said on Thursday that reduction in demand from Pakistan along with hard competition from China may hit India’s chilli exports in 2009-10 (April-March).

Weak global economy will also weigh on chilli exports, which accounted for 40 per cent of the total 470,520 tonnes of spices India exported in 2008-09, they said. According to Spices Board, chilli exports dropped 44 per cent from a year ago to 37,500 tonnes in April-June.

Export income reduced 31 per cent year on year to Rs 228 crore, the data showed. “China is selling to Pakistan, which is hitting Indian exports. But, it is difficult to get any accurate data from China,” said Alkesh Patel, managing director of Mumbai-based Amrutva Exports.

Commodities News Headline: Soyameal export declines 80 per cent in July on poor demand

India''s soyameal export fell 80 per cent in July. The drop is backed by gradual decline in demand abroad, an industry body said on August 6. The export of soyameal during July was 58,040 tonnes, compared with 2,84,990 tonnes in the corresponding month last year, Indore-based Soybean Processors Association (SOPA) said in a statement. The overseas shipment of soyameal, used mainly as animal feed, has dropped by 76 per cent so far this fiscal to 3,31,923 tonnes, SOPA said.

Commodities News Headline: Oilmeal exports fall 63% on lesser demand

Oilmeal exports in July dropped by 63 per cent backed by the lesser demand from markets all over the world.

According to data collected by the Mumbai-based Solvent Extractors’ Association (SEA), total exports during the month reduced to 173,329 tonnes as compared to 474,590 tonnes druing the corresponding month of previous year.

In the first four months of the current financial year, cattlefeed shipments fell 59 per cent to 787,857 tonnes as compared to 1,908,396 tonnes in the same period last year. According to the B V Mehta, executive director, SEA, India’s poor performance is due to the worsening demand in Southeast Asian countries as they were the major importers of Indian meal. Mehta also held responsible the government’s indicative suspension of oilseed exports early July that hampered sentiments in overseas markets for two-three days.

Commodities News Headline: Commodities News Headline

On Thursday, the physical rubber prices remained weak. According to observers there were no quantity buyers in the main marketing centres to keep the market firm though the domestic and international futures were in a bullish mood. Sheet rubber fell to Rs 100 from Rs 100.50 a kg on buyer resistance.

The August futures for RSS 4 went up to Rs 102.10 (101.28), September to Rs 99.73 (98.66), October to Rs 97.05 (96.63) and November to Rs 97 (96.52) a kg on National Multi Commodity Exchange (NMCE). RSS 3 improved at its August futures to Yen 191 (Yen 189) (Rs 95.37), September to Yen 187.3 (Yen 185.4), October to Yen 189 (Yen 187.3), November to Yen 190.9 (Yen 189.2), December to Yen 193.1 (Yen 191.5) and January to Yen 195.8 (Yen 194.5) a kg during the day session on TOCOM. The grade moved up further at its October futures to Yen 190.2, November to Yen 192, December to Yen 194.6 and January to Yen 197.3 a kg while the August and September futures remained inactive on late trades. RSS 3 weakened to Rs 93.67 (94.42) a kg on Singapore Commodity Exchange (SICOM). It improved to Rs 95.52 (95.13) a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 100 (100.50); RSS-5: 98 (98.50); Ungraded: 96 (96); ISNR 20: 91.75 (92.50) and latex 60 per cent: 82.50 (83).

Commodities News Headline: Pepper futures went up

On Thursday, the pepper futures market on witnessed high volatility and closed marginally above Wednesday’s level. There was selling pressure in the futures which pulled it down after going up during the early hours of trading.

Growers, who have been keeping stock for about five years or so, were also said to be liquidating as the prices moved up. In the domestic market, there was no activity as there was generally a wait and watch approach.

August contract went up Rs 43 on the NCDEX to close at Rs 14,099 a quintal. September and October went up by Rs 15 and Rs 13, respectively, to close at Rs 14,333 and Rs 14,000 a quintal.
Total turnover increased by 2,203 tonnes to 10,889 tonnes. Total open interest also moved up by 179 tonnes to 8,748 tonnes. August open interest fell by 119 tonnes while that of September and October increased by 130 tonnes and 139 tonnes.

Spot prices went up Rs 100 a quintal to close at Rs 13,500 (un-garbled) and Rs 14,000 (MG 1). Indian parity in the international market remained at $3,075-3,100 a tonne (c&f).