Pre Session Commentary - May 15 2008

The Indian Market is likely to have a positive opening on the back of strong global cues. On Wednesday, the Indian market closed on green on the back of heavy buying towards the end of the session. However, it opened in red on the back of mixed cues from the global market and this led the investors’ to show some cautious behavior in early session to book their positions but it managed to gather the momentum to close with good gains. The metal stocks remained in the limelight as it witnessed most buying during the trading session. The BSE Sensex closed higher by 225.49 points at 16,978.35 and NSE Nifty went up by 53.95 points to close at 5,011.75. We expect that the market may gain some grounds during the trading session.

On Wednesday, the US market closed in green. The Dow Jones Industrial Average (DJIA) closed higher by 66.20 points at 12,898.38 along with S&P 500 went up by 5.62 points to close at 1,408.66 and NASDAQ also went up by 1.58 points to close at 2,496.70.

Indian ADRs ended higher. In technology sector, Patni Computers went up by (5.59%) along with Infosys by (3.05%), Wipro by (2.61%) and Satyam went down by (0.76%). In banking sector, ICICI bank went up by (1.96%) and HDFC bank dropped by (0.46%). In telecommunication sector, MTNL and Tata Communication ended higher by (2.47%) and (2.10%). Sterlite Ind went up by (2.35%).

Today the major stock markets in Asia are trading higher. Japan’s Nikkei is trading higher by 144.86 points at 14,263.41 along with Hang Seng index trading up by 87.61 points at 25,621.09 and Taiwan Weighted trading at 9,102.84 up by 84.42 points.

The FIIs on Wednesday stood as net buyer in equity and net seller in debt. The gross equity purchased was Rs3,039.10 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,852.90 Crore and gross debt sold stood at Rs25.00 Crore. Therefore, the net investment of equity reported was Rs186.30 Crore and net debt was Rs (25.00 Crore).

Today, Nifty has support at 4,942 and resistance at 5,113 and BSE Sensex has support at 16,653 and resistance at 17,391.