Pre Session Commentary - June 20 2008

The Indian Market is expected to have positive opening on the back of favourable global cues as the US market closed in green and Asian markets are trading mixed. On Thursday, the Indian market closed with heavy loses pressurized by sales across the ground. It was a difficult day for the domestic market as it hanged around extremely negative zone after negative start due to weak global cues. It was in bad mood through out the trading session. Nuke Deal and inflation worries also caused distress for the market as political uncertainty occurred after CPM threatened the UPA to withdraw its support if government moves forward with the deal. From the sectoral front, all indices closed in red and capital goods, bank and reality stocks faced most of the negative sentiment. The BSE Sensex closed lower by 334.32 points at 15,087.99 and NSE Nifty ended down by 78.15 points at 4,504.25. We expect that market may remain volatile during the trading session and inflation data to be released today will give further direction to the market

US markets closed higher on Thursday baked by lower oil prices that offset a warning of further write-downs from Citigroup. Crude oil futures fell $4.75 at $131.93 per barrel on the New York Mercantile Exchange after China disclosed plans to raise prices for gasoline and diesel fuel by 16% and 18%.

The Dow Jones Industrial Average (DJIA) closed higher by 34.03 points at 12,063.09 along with NASDAQ up by 32.35 points to close at 2,462.06 and S&P 500 advanced by 5.02 points to close at 1,360.03.

Indian ADRs ended mixed. In technology sector, Wipro went up by (2.90%) along with Satyam by (2.29%) and Infosys by (2.05%) while Patni Computers dropped by (2.28%). In banking sector, ICICI bank and HDFC bank decreased by (2.01%) and (0.78%) respectively. In telecommunication sector, MTNL and Tata Communication advanced by (3.59%) and (0.70%). Sterlite industries declined (0.85%).

Today the major stock markets in Asia are trading mixed. Hang Seng index is trading higher by 387.83 points at 23,185.44 while Japan’s Nikkei trading down by 132.74 points at 13,997.43 and Taiwan Weighted trading flat at 8,047.51.

The FIIs on Thursday stood as net seller in equity. The gross equity purchased was Rs2,469.90 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,919.70 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs449.80) Crore and net debt was Rs0.00 Crore.

Today, Nifty has support at 4,416 and resistance at 4,573 and BSE Sensex has support at 14,799 and resistance at 15,370