Pre Market Watch - May 16 2008

Strong favoring global cues will led the Indian Market to have positive opening today. The Indian market on Thursday closed with good gains on the back of heavy buying throughout the session. It opened with a huge gap up due to the strong positive cues from the global market and the easing of the crude oil prices, which led the investors’ to show positive attitude in early session. The market gained the further momentum after the mid session to close on a satisfactory note. The capital goods and metal stocks remained in the limelight as it witnessed most buying during the trading session. The BSE Sensex closed higher by 375.19 points at 17,353.54 and NSE Nifty went up by 103.50 points to close at 5,115.25. We expect that the market may extend its yesterday’s gains during the trading session and the declaration of the inflation figure by the government in the later half will give further direction to the market.

The cost of trading in Indian equities could rise marginally as brokerages will levy 12.36% service tax on transaction charge, auction commission and bad delivery auction commission from today. It will be charged on all market segments, but it would not effect the trading too much as the rise will be marginal.

On Thursday, the US market closed in green. The Dow Jones Industrial Average (DJIA) closed higher by 94.28 points at 12,992.66 along with NASDAQ went up by 37.03 points to close at 2,533.73 and S&P 500 also went up by 14.91 points to close at 1,423.51.

Indian ADRs closed firmly. In technology sector, Infosys went up by (5.08%) along with Patni Computers by (2.61%), Wipro by (1.64%) and Satyam by (1.58%). In banking sector, ICICI bank grew by (3.33%) and HDFC bank by (3.54%). In telecommunication sector, MTNL and Tata Communication ended higher by (1.33%) and (1.09%). Sterlite Industries advanced by (2.15%).

Today the major stock markets in Asia are trading higher. Hang Seng index is trading up by 229.26 points at 25,742.97 along with Taiwan Weighted trading at 9,222.43 up by 65.25 points and Japan’s Nikkei trading higher by 21.97 points at 14,273.71.

The FIIs on Thursday stood as net buyer in equity and net seller in debt. The gross equity purchased was Rs2,619.70 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,361.50 Crore and gross debt sold stood at Rs13.60 Crore. Therefore, the net investment of equity reported was Rs258.10 Crore and net debt was Rs (13.60 Crore).

Today, Nifty has support at 5,043 and resistance at 5,229 and BSE Sensex has support at 17,034 and resistance at 17,792.