Pre Session Commentary - June 17 2008

The Indian Market is expected to open positive on the back of mixed global cues as the US market closed mixed and Asian markets are also trading mixed. On Monday, the Indian market closed on positive zone due to heavy buying across the ground. The domestic market opened with positive note on the back of strong global cues and maintained the balance throughout the trading. From the sectoral front, realty, banking, metal, technology and oil & gas stocks held gains of market while consumer durables and auto stocks were out of favor during final trading hours. Due to increase in excise duty by Union government on large cars, multi-utility vehicles and sports utility vehicles with an engine cubic capacity exceeding 1500, auto stocks dropped. The BSE Sensex closed higher by 206.20 points at 15,395.82 and NSE Nifty ended up by 55.40 points at 4,572.50. We expect that market may give up some of its yesterday’s gains during the trading session.

Oil surged to a new record high on Monday of nearly $140 a barrel, pushed by weakness in the dollar which offset the bearish impact of plans by Saudi Arabia to increase output by the next month by about a half million barrels a day.

On Monday, U.S. stock indexes were mixed, due to rise in oil prices and fall in the U.S. dollar against the euro and the yen and also weakening of manufacturing in June for four times in five months. It softened 5 points to negative 8.7 in June. Lehman Brothers announcement also add on to negative sentiment about loss of $2.8 billion for second quarter.

The NASDAQ closed higher by 20.28 points at 2,474.78 along with S&P 500 up by 0.11 points to close at 1,360.14 while Dow Jones Industrial Average (DJIA) dropped by 38.27 points to close at 12,269.08.

Indian ADRs ended mixed. In technology sector, Patni Computers went up by (1.83%) while Satyam dropped by (1.28%) along with Wipro by (0.59%) and Infosys by (0.51%). In banking sector, HDFC bank and ICICI bank increased by (1.32%) and (0.63%) respectively. In telecommunication sector, MTNL advanced by (0.67%) while Tata Communication decreased by (2.55%). Sterlite industries inclined (1.36%).

Today the major stock markets in Asia are trading mixed. Hang Seng index is trading higher by 44.39 points at 23,074.08 along with Japan’s Nikkei trading up by 18.51 points at 14,372.88. However, Taiwan Weighted trading at 8,107.37 down by 62.40 points.

The FIIs on Monday stood as net seller in equity. The gross equity purchased was Rs2,712.10 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,763.90 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs51.80) Crore and net debt was Rs0.00 Crore
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Today, Nifty has support at 4,468 and resistance at 4,635 and BSE Sensex has support at 15,126 and resistance at 15,590.