Market may remain under pressure

Market is expected to remain under pressure tracking weak cues from global markets. Strong support exists for Sensex at the physiological 14,000 level, which was tested yesterday, but it managed to close well above it.

Also a stronger-than-expected industrial production numbers announced by noon on 12 June 2007, increased risks of more monetary measures by the Reserve Bank of India. Industrial production in April rose 13.6%, higher than street expectations of 11.3% rise. The figure for March was also raised upwards from 13% to 14.5%.

However value buying may not be ruled out, in later half of the day

Asian indices also edged lower mirroring weak US markets, with export-related shares such as Toyota Motor Corp. retreating on concerns over global growth, while Sumitomo Metal Mining and BHP Billiton lost ground on weaker metals prices. Japan's Nikkei slipped 114.10 points or 0.64% at 17,646.81 while Hong Kong's Hang Seng index slumped 77.44 points or 0.38% to 20,558.95.

South Korea's Seoul Composite (down 0.61% at 1,719.28), Singapore's Straits Times (down 0.20% at 3,554.42) also declined.

Wall Street shares plunged on 12 June 2007, as investors grappled with a seemingly relentless rise in bond yields. The Dow Jones industrial average slipped 129.95 points, or 0.97%, to 13,295.01. The blue chip index is now 381 points, or 2.8%, below its all time closing high of 13,676.32, reached on 4 June 2007.

The broader stock indexes also declined. The Standard & Poor's 500 index fell 16.12 points, or 1.07%, to 1,493.00, while the Nasdaq composite index dropped 22.38 points, or 0.87%, to 2,549.77.

Crude oil was little changed in New York after falling with gasoline yesterday on speculation U.S. fuel stockpiles rose a sixth week as refiners increased output. Crude oil for July delivery was $65.29 a barrel, down 6 cents, in after-hours electronic trading on the New York Mercantile Exchange in Singapore.

As per provisional data, FIIs were buyers in equities to the tune of Rs 335.30 crore while Domestic Institutional Investors (DIIs) sold Rs 80.86 crore of equities, on 12 June 2007