Pre Market Watch - May 12 2008

The Indian Market is likely to have a negative opening due to unfavoring cues from the Asian markets. On Friday, Indian market closed in red due to negative cues like the growth in domestic inflation figures that rose at the fastest pace in three and half years to 7.61% in the week ended 26th April. Also the surge in global crude oil prices above $125 led to the negative sentiments in the market. From the sectoral front, the oil and gas stocks faced the heavy selling across the counters. The BSE Sensex closed lower by 343.58 points at 16737.07 and NSE Nifty fell by 99.10 points to close at 4,982.60. We expect that the market may remain volatile during the trading session.

On Friday, the US market closed in green. The Dow Jones Industrial Average (DJIA) closed lower by 120.90 points at 12,745.88 along with S&P 500 fell by 9.40 points to close at 1,388.28 and NASDAQ dropped by 5.72 points to close at 2,445.52.

Indian ADRS closed mixed. In technology sector, Satyam grew by (1.68%) along with Patni Comp by (1.26%), Wipro by (0.70%) and Infosys by (0.19%). In banking sector, HDFC bank and ICICI bank fell by (2.33%) and (1.35%) respetively. In telecommunication sector, MTNL dropped by (1.38%) while Tata Communication grew by (0.42%).

Today the major stock markets in Asia are trading weak. Hang Seng is trading lower by 386.62 points at 25,063.17 along with Japan’s Nikkei trading down by 23.30 points at 13,632.04 and Taiwan Weighted trading at 8,768.56 down by 23.83 points. Shanghai Composite trading down by 22.81 points at 3,590.68.

The FIIs on Friday stood as net seller in equity. The gross equity purchased was Rs2,663 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs3,065.80 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs402.50 Crore) and net debt was (Rs0.00 Crore).

Today, Nifty has support at 4,853 and resistance at 5,079 and BSE Sensex has support at 16,448 and resistance at 17,06