Market pull back to continue; US Fed policy eyed: Udayan

Indian indices continued gains in second consecutive session, despite a status quo monetary policy by Reserve Bank of India following strong global cues ahead of US Federal Reserve policy, says CNBC-TV18's Udayan Mukherjee.

Rupee too did not get shocked with record high trade deficit data and ended up 31 paise at 57.97 against dollar. Shares of Mahindra group companies were in focus after Mahindra and Mahindra announced to merge all its auto components businesses into Mahindra Forgings. Mahindra Forgings will be renamed Mahindra CIE Automotive, where the Spanish auto components maker CIE will hold 51.1 percent and Mahindra 20.2 percent. Below is the verbatim transcript of the Udayan's commentary on today's trade.
The markets dipped just about for a few minutes after the policy and then managed to bounce back once again finally closing the day around 5850, very close to the highs of the session. So, that was quite good.
The breadth was fine. Global markets were quite strong today so that is the good bit that European markets and the Dow futures were all looking quite smart indicating that they are going into that crucial FOMC meeting with some strength under their belts.
The rupee also was quite well behaved you would have to say given that the trade deficit for May came in at a higher than expected USD 20 billion plus. So, despite that the rupee did not drop too much. Also read: Near-term bearish, uncertain; Nifty may see 5600: IIFL
On individual stocks Mahindra and Mahindra (M&M) had a very good session. Telecom stocks across the board Bharti Airtel, Idea Cellular and Reliance Communication looked good. The beaten down Bharat Heavy Electricals Limited (BHEL) stock staged a bit of a come back and then there were other auto companies like Hero MotoCorp and Bajaj Auto and Maruti Suzuki which did quite well. Reliance Industries wasn’t bad either.
Ranbaxy continues to slide. Hindalco had a bad session but otherwise large caps were okay today. In Midcaps we did see some interesting moves in stocks like Orchid Chemicals and Aurobindo Pharma in the pharmaceutical space. Jet Airways stands out because it started the day some 10-12 percent lower but had recovered completely by the end of the session. So, that was quite a u-turn.
Some of the Mahindra Group stocks did quite well because of the deal which was stuck yesterday. Polaris and Crompton Greaves did not do too badly. On the losing side stocks like Adani Power and Punj Lloyd and Apollo Tyres looked quite weak today. Otherwise the market breadth was quite fine.
So, all in all the markets pull back which started on Friday has extended by another day as it eyes communication from Ben Bernanke on Wednesday night.