Pre Market Watch - March 5 2008

The Indian Market is likely to have a positive opening, as the Asian markets are trading higher. On Tuesday, The Indian market closed on a disappointing note backed by heavy selling across the sectoral indices scrips. The market opened on firm note tracking the favoring cues from the global market but was unable to sustained at higher levels and fell few minutes after the start of the session. The market got a boost after the mid session to level its initial session but again fell in the final trading hours. The BSE Sensex closed lower by 337.99 at 16,339.89 and NSE Nifty fell by 88.75 points to close at 4,864.25. We expect that the market may remain cautious during the trading session due to the negative sentiments as ICICI Bank, which has suffered marked to market losses of $264.3 million (about Rs 1,056 crore) on account of exposure to overseas credit derivatives and investments in fixed income assets.

On Tuesday, the US market was closed mixed. The Dow Jones Industrial Average (DJIA) closed lower by 45.10 points at 12,213.80 along with S&P closed down by 4.59 points at 1,326.75 while NASDAQ grew by 1.68 points at 2,260.28

Today the major stock markets in Asia are trading in green. Hang Seng is trading higher by 95.69 points at 23,215.56 along with Taiwan Weighted trading up by 40.70 points at 8,510.81 and Singapore Strait Times trading at 2,926.20 up by 6.52 points.

Indian ADRs ended in negative. Infosys fell by (2.04%) along with Wipro by (1.30%) and Satyam by (1.06%). ICICI bank and HDFC bank fell by (6.70%) and (1.61%) respectively.

The FIIs on Tuesday stood as net seller in equity. The gross equity purchased was Rs3,420.30 Crore while the gross equity sold stood at Rs4,103.90 Crore. Therefore, the net investment of equity reported was (Rs683.50) Crore.

Today, Nifty has support at 4,719 and resistance at 5,929 and BSE Sensex has support at 15,806 and resistance at 16,529.