Pre Session Commentary - May 8 2008

The Indian Market is likely to have a negative opening as the US market close in red while the Asian market are trading on the back foot. On Wednesday, the Indian market continued its previous day losing trend to close in negative. The investors did not showed their active participation during the trading session as the cues from the global markets like the surging crude oil prices above $121 a barrel led the investors to take cautious steps to book their further positions. The market opened with marginal gains but fell soon after the start, however the market gathered the momentum towards the mid session to recover from the fall but unable to sustain at the higher levels and fell to close on the back foot. The capital goods stocks remained in the limelight as most selling was reported from this basket. The BSE Sensex closed lower by 33.70 points at 17,339.31 and NSE Nifty fell by 9.15 points to close at 5,135.50. We expect that the market may decline further during the trading session.

On Wednesday, the US market closed in red. The Dow Jones Industrial Average (DJIA) closed lower by 206.48 points at 12,814.35 along with S&P 500 fell by 25.69 points to close at 1,392.57 and NASDAQ dropped by 44.82 points to close at 2,438.49.

Indian ADRS closed in red. In technology sector, Satyam fell by 6.31% along with Wipro by 5.85%. Infosys by 5.59% and Patni Computers by 0.61%. In banking sector, HDFC bank and ICICI bank dropped by (5.81%) and (2.38%) respetively. In telecommunication sector, MTNL and Tata Communication slipped by (5.71%) and (4.22%). Sterlite industries declined by (4.29%).

Today the major stock markets in Asia are trading in negative. Japan’s Nikkei is trading lower by 123.54 points at 13,978.94 along with Han Seng index trading down by 59.49 points at 25,550.72 and Taiwan Weighted trading at 8,876.97 down by 49.37 points.

The FIIs on Wednesday stood as net seller in equity. The gross equity purchased was Rs3,099.00 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs3,827.80 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs728.80 Crore) and net debt was Rs0.00 Crore.

Today, Nifty has support at 5,002 and resistance at 5,201 and BSE Sensex has support at 16,926 and resistance at 17,492.