Pre Session Commentary - Sep 29 2008

The Market is expected to open positive as the N-Deal has been accepted by the US government with 2/3 majority and further the bilateral trade between US and India is expected to be positive in future. The Asian markets also opened positive on the back of the positive out look of the bail out to be finalized today. However later the Asian markets are trading moving mixed. The US Congress will today vote on a revised $700 billion rescue deal for Wall Street, after a weekend of negotiations produced a plan that Congressional leaders said has more stringent protections for the American taxpayer. The Treasury wouldn''t get all the $700 billion upfront. $350 billion would be immediately available. But the other $350 billion would be available unless Congress specifically holds.

On Friday, the market fell drastically amidst confusion on issues like N-Deal and US bail out. The stress between the Republican and the Democratic Party over the issue of bail out worth US$ 700 billion to bridge the financial crunch of Investment Banks kept the sentiments of market low across Asia. Further sentiments also dented by the failure of Washington Mutual Fund, which was acquired by JPMorgan Chase on Thursday. JPMorgan Chase & Co. Inc. acquired the assets of Washington Mutual Inc.''s banking operations after federal regulators seized the ailing thrift. Under the terms of the deal, J.P. Morgan acquired all of the deposits and assets of Washington Mutual and its subsidiary Washington Mutual FSB, valued at $307 billion in assets and $188 billion in deposits. All throughout the day the market kept diving into the red territory without any sign of recovery. The sectors that felt the extreme heat were realty, metal, bankex and CG. We expect that the market remain volatile during the trading session.

The BSE Sensex closed lower by 445 points at 13,102.18 and NSE Nifty ended down by 125.3 points at 3,985.25. The BSE Mid Caps and Small Caps closed with losses of 152.23 points and by 188.25 points at 4,940.82 and 5,861.78. The BSE Sensex touched intraday high of 13,486.20 and intraday low of 13,054.42.

On Friday, the US market remained mixed on the back of doubts about the bail out plan and the negative sentiments of Washington Mutual Fund. Crude oil futures for the month of November delivery closed lower by $1.13 at $106.89 per barrel on New York Mercantile Exchange. The crude prices ended lower due to ongoing supply concerns in the Gulf of Mexico region due to storm disruptions to energy production and refining.

The Dow Jones Industrial Average (DJIA) closed up by 121.07 points at 11,143.13 along with NASDAQ index closed lower by 3.23 points at 2,183.34 and the S&P 500 (SPX) gained 4.09 points to close at 1,213.27 points.

Indian ADRs ended down. In technology sector, Patni Computers closed down by (11.02%) followed by Wipro by (2.84%), Infosys closed lower by (1.84%) and Satyam by (1.22%). In banking sector ICICI Bank and HDFC Bank lost (9.11%) and (4.04%). In telecommunication sector, Tata Communication and MTNL plunged (10.11%) and (1.80%). Sterlite Industries decreased by (7.24%).

Today the major stock markets in Asia opended positive on the back of positive cues from the US government about the $700 billion bail out plant but however the bill would authorize $250 billion immediately, with another $100 billion upon presidential certification. A further $350 billion would also be available subject to congressional approval. Hang Seng index is trading down by 245.50 points at 18,436.59. Followed by, Japan''s Nikkei up by 54.49 points at 11,947.65 and Singapore''s Straits trading at 2,406.92 down by 54.49 points.






The FIIs on Friday stood as net seller in equity however in debt there was no trading. Gross equity purchased stood at Rs4214.50 Crore and gross debt purchased stood at Rs0 Crore while the gross equity sold stood at Rs4918.30 Crore and gross debt sold stood at Rs0 Crore. Therefore, the net investment of equity reported was (Rs703.80) Crore and net debt was Rs0Crore.

On Friday, The rupee decreased by 33 paise on Sept 26 against the greenback due to large-scale dollar demand from big corporate houses and oil importers. The currency opened at 46.15/16 and weakened to reach an intra-day low of 46.57/58. It ended at 46.54/55 against the previous close of 46.21/22. In the forward market, the 6-month premium closed lower at 1.19 per cent and the 12-month ended at 1.06 per cent.

On BSE, total number of shares traded were 25.19 crores and total turnover stood at Rs4850.22 crores. On NSE, total volumes of shares traded were 43.29 crores and total turnover was Rs10500.36 crores.

Top traded volumes on NSE Nifty – ICICI Bank with total volume of 11841157 shares followed by Suzlon Energy with 10981619 shares, SAIL 7735590 shares, Reliance Power 7377585 shares and Unitech 7136700 shares.

On NSE Future and Options, total number of contracts traded in index futures was 761453 with a total turnover of Rs14312.55 crores. Along with this total number of contracts traded in stock futures were 727640 with a total turnover of Rs11629.34 crores. Total number of contract for index options was 815607 and total turnover was Rs 17435.69 crores and total number of contracts for stock options was 50434 and notional turnover was Rs 919.56 crores.

Today, Nifty has support at 3,935 and resistance at 4,080 and BSE Sensex has support at 12,867 and resistance at 13,376.