Post Session Commentary - June 30 2008

The Indian Market is expected to have positive opening on the back of mixed global cues. On Friday, the Indian market closed in deep red after going through a blood bath due to rise in crude oil prices and inflation worries. Crude oil prices reached to a new high of $141.71 a barrel for the first time after the head of OPEC predicted that the price of crude could raise over $150. Market opened on extremely negative note on the back of weak global cues continued to trade weak. till the end of session. From the sectoral front, metal, capital goods, bank, oil & gas and realty stocks faced heavy selling across the counters. The BSE Sensex closed lower by 619.70 points at 13,802.22 and NSE Nifty ended down by 179.20 points at 4,136.65. We expect that market may remain volatile during the trading session.

US markets closed lower on Friday on the concern of sub-prime write down at banks may increase together with record oil and slowdown in global economic growth which in turn will hit corporate earnings.

The Dow Jones Industrial Average (DJIA) closed lower by 106.91 points at 11,346.51 along with NASDAQ down by 5.74 points to close at 2,315.63 and S&P 500 dropped by 4.77 points to close at 1,278.38.

Indian ADRs ended mixed. In technology sector, Satyam ended up by (2.50%) along with Wipro by (1.09%), Infosys by (0.99%) while Patni Computers dropped by (1.92%). In banking sector, ICICI bank and HDFC bank decreased by (4.29%) and (1.65%) respectively. In telecommunication sector, MTNL and Tata Communication reduced by (4.04%) and (0.06%). Sterlite industries declined (3.06%).

Today the major stock markets in Asia are trading mixed. Hang Seng index is trading higher by 55.99 points at 22,098.34 along with Japan’s Nikkei trading up by 45.04 points at 13,589.40 while Taiwan Weighted trading at 7,534.93 with a fall of 13.83 points.

The FIIs on Friday stood as net seller in equity and debt. The gross equity purchased was Rs4,235.50 Crore and the gross debt purchased was Rs207.70 Crore while the gross equity sold stood at Rs4,704.60 Crore and gross debt sold stood at Rs483.50 Crore. Therefore, the net investment of equity reported was (Rs49.00) Crore and net debt was 275.90 Crore.

Today, Nifty has support at 4,051 and resistance at 4,211 and BSE Sensex has support at 13,506 and resistance at 14,074.