Pre Session Commentary - July 28 2008

The Indian Market is expected to have negative opening due to negative bias among the investors. Though the global cues are little supportive as US markets closed with gains and Asian markets are trading mixed along with further drop in crude oil prices. On Friday, the Indian market closed in deep red mainly due to heavy selling over the counters. The domestic market opened sharply lower tracking negative cues from the global markets. Further, it lost more ground after reports of serial bomb blasts that hit the IT city Bangalore and continued to trade on back foot till the end of session. The BSE Sensex slipped below 14,300 and NSE Nifty closed below 4,400. From the sectoral front, heavy selling pressure was seen in the Oil & Gas, Bank, Capital Goods, Reality, Metal and Power stocks. While, FMCG and Pharma stocks were in limelight as most of the buying was witnessed from these baskets. The BSE Sensex closed lower by 502.07 points at 14,274.94 and NSE Nifty ended down by 121.70 points at 4,311.85.

We expect that market may trade lower with negative bias during the trading session ahead of RBIs review and on sense of uneasiness due to the serial blasts in Bangalore and Ahmedabad.

On Friday, the US market was closed with gains on better than expected economic reports and further drop in crude oil to $123 a barrel on the New York Mercantile Exchange. The NASDAQ closed higher by 30.40 points at 2,310.53 along with Dow Jones Industrial Average (DJIA) ended up by 21.41 points at 11,370.69 and S&P 500 index closed higher by 5.22 points at 1,257.76.

Indian ADRs ended mixed. In technology sector, Satyam ended higher by (1.39%) along with Wipro by (1.30%) and Infosys by (1.16%) while Patni Computers dropped by (0.46%). In banking sector, ICICI bank and HDFC bank lost (2.52%) and (1.61%) respectively. In telecommunication sector, MTNL and Tata Communication ended up by (6.94%) and (0.13%). Sterlite industries decreased by (5.80%).

Today the major stock markets in Asia are trading mixed. Japan’s Nikkei is trading higher by 71.07 points at 13,405.83 along with Hang Seng index trading up by 9.73 points at 22,750.44. However, Singapore''s Straits Times is down 9.73 points at 2,913.18.


The FIIs on Friday stood as net buyer in equity and debt. The gross equity purchased was Rs3,927.10 Crore and the gross debt purchased was Rs90.50 Crore while the gross equity sold stood at Rs3,370.80 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was Rs556.30 Crore and net debt was Rs90.50 Crore.

Today, Nifty has support at 4,182 and resistance at 4,378 and BSE Sensex has support at 13,825 and resistance at 14,555.