Pre Session Commentary - May 6 2008

The Indian Market is likely to have a negative opening due to due to unfavoring cues from the global markets. On Monday, the Indian Market faced the heavy selling pressures towards the final trading hours of the session that led the market close on a sad note. The Indian market opened with marginal gains tracking the mixed cues from the global markets but the volatility gripped the market since the initial bell. Though the market got the momentum towards the mid session but was unable to sustain at the higher level and fell to close in negative. However, the investors showed some buying interest from the mid cap and small cap baskets. The BSE Sensex closed lower by 109.22 points at 17,490.90 and NSE Nifty fell by 35.95 points to close at 5,192.25. We expect that the market may choppy bound during the trading session.

On Monday, the US market closed in negative territory. The Dow Jones Industrial Average (DJIA) closed lower by 89.23 points at 12,968.97 along with S&P 500 fell by 6.41 points to close at 1,407.49 and NASDAQ dropped by 12.87 points to close at 2,464.12.

Indian ADRS closed in red. In technology sector, Patni Compuers fell by (4.51%) along with Infosys by (1.29%), Wipro by (1.25%) and Satyam by (0.99%). In banking sector, ICICI bank and HDFC bank dropped by (1.43%) and (0.73%) respetively. In telecommunication sector, Tata Comm and MTNL slipped by (5.10%) and (2.60%) respectively.

Today the major stock markets in Asia are trading lower. Hang Seng is trading down by 91.10 points at 26,092.85 along with Shanghai Composite trading lower by 67.81 points at 3,693.20 and Taiwan Weighted trading at 8,820.96 down by 16.11 points.

The FIIs on Monday stood as net buyer in equity while the net seller in debt. The gross equity purchased was Rs3,624.50 Crore and the gross debt purchased was Rs7.60 Crore while the gross equity sold stood at Rs2,904.60Crore and gross debt sold stood at Rs19.90 Crore. Therefore, the net investment of equity reported was Rs720.00 Crore and net debt was (Rs12.30 Crore).

Today, Nifty has support at 5,067 and resistance at 5,273 and BSE Sensex has support at 17,112 and resistance at 17,784.