Pre Market Watch -July 24 2008

Equities are likely to extend gains on Thursday as the sentiment remains upbeat after the government won the confidence motion on Tuesday. Crude oil's further slide and positive global cues will add to the optimism. The market will also keenly watch earnings declaration for the April-June quarter from the likes of Bharti Airtel, Reliance Industries and Idea Cellular.

Inflation data is also expected after market hours today. The wholesale price index is forecast to have risen 12.03 percent in the 12 months to July 12 driven by higher costs of commodities and strong demand in the economy. Data showed inflation at 11.91 percent a week earlier.

Meanwhile, US stocks rose overnight as crude oil's slide deepened to seven-week lows while financial shares climbed on hopes lawmakers will approve a rescue plan for mortgage finance companies Fannie Mae and Freddie Mac. Strong earnings declaration from earnings reports from AT&T and Pfizer also eased concern that the profit slump will worsen.

Oil edged down to $124 on Thursday, extending a precipitous pull-back from this month's record high after US data signalled that economic woes and high prices slackened demand. US light crude for September delivery fell 46 cents to a seven-week low of $123.98 a barrel.

Asian stocks advanced tracking Wall Street gains and declining oil prices. The Nikkei was up 1.27 per cent, Hang Seng rose 0.06 per cent, S&P ASX 200 climbed 0.5 per cent and Straits Times added 0.1 per cent.

Back home, it was a spectacular rally on Dalal Street Wednesday in reaction to the UPA government's confidence vote win in parliament. Bombay Stock Exchange's Sensex settled 5.94 per cent or 838.08 points higher at 14,942.28, just 58 points away from the 15000 mark. It soared to a high of 14,979.90 from a low of 14,568.22.

National Stock Exchange's Nifty ended at 4476.80, up 5.58 per cent or 236 points higher. The broader index touched a high of 4491.55 and low of 4246.70 during the day.

Foreign institutional investors were net buyers of equity worth a whopping Rs 1306.56 crore while mutual funds net sold Rs 875.22 crore of equity on Wednesday, according to provisional data on NSE.