Pre Session Commentary - Apr 29 2008

The Indian Market is likely to have a positive opening due to mixed cues from the global markets. On Monday, the Indian market closed in red as the volatility gripped the market since the initial bell. The market was unable to sustain at higher levels and kept on moving between the positive and negative territory throughout the trading session. Also, the RBI’s monetary policy review and US Fed’s policy meeting on April 30 led the investors to take cautious approach through out the trading session. The market breadth was weak as 1374 stocks closed in red while 1295 stocks closed in green. The BSE Sensex closed lower by 110.02 points at 17,015.96 and NSE Nifty fell by 22.05 points to close at 5,089.65. We expect that the market may remain choppy during the trading session and all the eyes will be on the RBI’s Credit Policy, which is scheduled today and this announcement by RBI will give further direction to the market.

On Monday, the US market closed mixed. The Dow Jones Industrial Average (DJIA) closed lower by 20.11 points at 12,871.75 along with S&P 500 fell by 1.47 points to close at 1,396.37 while NASDAQ closed higher by 1.47 points at 2,424.40.

The Indian ADRS closed mixed. In technology sector, Infosys fell by (1.92%) along with Satyam by (1.06%) and Wipro by (0.63%). In banking sector, ICICI bank and HDFC Bank dropped by (3.86%) and (2.86%) respectively. In telecommunication sector, Tata Communication and MTNL increased by (0.40%) and (0.36%) respectively.

Today the major stock markets in Asia are trading mixed. Hang Seng is trading higher by 75.05 points at 25,738.34 along with Japan’s Nikkei trading up by 30.90 points at 13,894.37 and Taiwan Weighted trading at 9,057.34 up by 18.05 points.

The FIIs on Monday stood as net buyer in equity while net seller in debt. The gross equity purchased was Rs3,414.90 Crore and the gross debt purchased was (Rs186.90 Crore) while the gross equity sold stood at Rs3,066.10 Crore and gross debt sold stood at Rs236.30 Crore. Therefore, the net investment of equity reported was Rs348.80 Crore and net debt was (Rs423.20 Crore).

Today, Nifty has support at 4,867 and resistance at 5,198 and BSE Sensex has support at 16,642 and resistance at 17,482.