Daily Call - Aug 20 2008

The US markets have yielded further ground on higher producer price index and the Asian markets are mixed. However, given the support that came in the last hour of trading, I expect the markets to take into stride any selling that may happen during early trade. Tuesday’s resurgence from the lows came on the back of Reliance and the market heavy weight may lead the pack today as well.


PSU oil firms could do well if their proposal to sell Diesel at differential rates to industrial and retail consumers is accepted. Reliance could also benefit if the Government allows it sell Diesel in the domestic space even after paying custom duty on crude and excise on Diesel. Fertiliser and Sugar stocks are also expected to do well.