Pre Market Commentary - Feb 12 2008

The Indian Market is likely to have a positive opening as the cues from the global markets are in favor. On Monday, the market tumbled and faced a blood bath during the trading session on the back of miserable debut of Reliance Power in the capital market. The investors booked the profits on these scrips to clear up their positions. The market opened on a weak note tracking the unfavoring cues from the Asian markets and trade on the back foot throughout the trading session. The negative sentiments on the poor performance of the Reliance Power IPO weighed across all the sectoral indices that led to the heavy selling across the counters. The State Bank of India which slashed its Prime Lending Rate by 25 basis point to 12.50% from 12.75% also failed to give a boost to the market. The Mid Caps and Small Caps also joined the rally of the benchmark indices as they faced heavy selling pressures. The BSE Sensex closed lower by 833.98 points at 16,630.91 and NSE Nifty fell by 263.35 points to close at 4,857. We expect that the market may gain some grounds during the trading session.

On Monday, the US market closed in green. The Dow Jones Industrial Average (DJIA) closed higher by 57.88 points at 12,240.01. S&P 500 index grew by 7.84 points to close at 1,339.13 and NASDAQ fell by 15.21 points to close at 2,320.06.

Indian ADRS ended mixed. In technology sector, Satyam grew by (5.30%) along with Infosys by (4.41%) and Wipro by (2.79%). In banking sector, ICICI bank and HDFC bank fell by (2.50%) and (1.69%) respectively. VSNL fell by (3.52%).

Today, the major stock markets in Asia are trading firm. Hang Seng is trading higher by 491.24 points to trade at 23,107.35 along with Japan''s Nikkei trading up by 15.01 points at 13,032.25 and Singapore Strait Times trading at 2,903.61 up by 35.32 points.

Today, Nifty has support at 4,712 and resistance at 4,976 and BSE Sensex has support at 16,126 and resistance at 17,119.