Pre Session Commentary - May 7 2008

The Indian Market is likely to have a positive opening as the cues from the global markets are in favor. On Tuesday, the Indian market closed in negative territory on the back of heavy selling pressures across the sectoral indices. Tracking the weak cues from the global market, he domestic market opened on the back foot and kept on hovering in the negative territory throughout the trading session. The investors did not showed their active participation in booking their further positions. The BSE Sensex closed lower by 117.89 points at 17,373.01 and NSE Nifty fell by 47.6 points to close at 5,144.65. We expect that the market may volatile bound during the trading session.

On Tuesday, the US market closed in green. The Dow Jones Industrial Average (DJIA) closed higher by 51.86 points at 13,020.83 along with S&P 500 closed up by 10.77 points at 1,418.26 and NASDAQ grew by 19.19 points to close at 2,483.31.

Indian ADRS closed mixed. In technology sector, Infosys grew by (3.25%) along with Wipro by (2.01%) and Satyam by (1.30%). In banking sector, ICICI bank and HDFC bank fell by (1.93%) and (0.48%) respetively. In telecommunication sector, Tata Comm advanced by (2.85%) while MTNL dropped by (3.21%). Sterlite industries grew by (4.63%).

Today the major stock markets in Asia are trading mixed. Japan’s Nikkei is trading higher by 130.23 points at 14,179.49 along with Taiwan Weighted trading up by 94.66 points at 8,952.03 and Shanghai Composite trading at 3,756.15 up by 22.65 points while Hong Kong’s Hang Seng index is trading lower by 62.46 points at 26,199.67.

The FIIs on Tuesday stood as net seller in equity while the net buyer in debt. The gross equity purchased was Rs2,704.90 Crore and the gross debt purchased was Rs139.90 Crore while the gross equity sold stood at Rs3,011.50Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs306.70 Crore) and net debt was Rs139.90 Crore.

Today, Nifty has support at 5,012 and resistance at 5,239 and BSE Sensex has support at 17,134 and resistance at 17,768.