Pre Session Commentary - May 27 2008

The Indian Market is likely to have a positive opening on the back of favorable cues from the Asian markets as it is trading on the strong note. On Monday, unfavorable global cues like surging crude oil prices and increasing inflationary worries led the Indian market to open on back foot and continued the same throughout the trading session to close in negative. Also the expiry of derivatives contract on coming Thursday added to the sentiments. From the sectoral front, the metal, capital goods, banking and reality stocks were not in favor due to lack of support. However IT stocks were in limelight as it was only index to trade in green The BSE Sensex closed lower by 301.14 points at 16,348.50 and NSE Nifty fell by 71.5 points to close at 4,875.05. We expect that the market may gain further during the trading session.

The government is working on a dual-track strategy of fuel price hikes and the duty cuts. The finance ministry has asked the petroleum ministry to work out the strategy of duty realizations and their impact on oil companies.
On Monday, the US markets were closed for the celebration of Memorial holiday.

Today the major stock markets in Asia are trading firm. Hang Seng index is trading higher by 136.21 points at 24,263.52 along with Japan’s Nikkei trading up by 112.43 points at 13,802.62 and Taiwan Weighted trading at 8,756.69 up by 48.86 points.

The FIIs on Monday stood as net seller in equity and debt. The gross equity purchased was Rs2,350.70.00 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,351.200 Crore and gross debt sold stood at Rs130.10 Crore. Therefore, the net investment of equity reported was (Rs500.50 Crore) and net debt was (Rs130.10 Crore).

Today, Nifty has support at 4793 and resistance at 4987 and BSE Sensex has support at 16132 and resistance at 16724.