Pre Session Commentary - Sep 9 2008

The Indian Market is expected to have negative opening as Asian markets are trading lower. On Monday, domestic markets after giving up a part of its earlier gains, concluded the day with heavy growth as the Nuclear Suppliers Group (NSG) waved India through, giving a leg-up to India''s Nuclear Deal with the US. Market opened on strong note on favorable global indicate and NSG approval for India. Further, bulls continued to nuke bears on investor’s positive attitude led by strong buying. Strong Asian and European markets also lifted the sentiment after the US government announced to takeover mortgage giant Freddie Mac and Fannie Mae. NSE Nifty ended around 4,500 mark and BSE Sensex around 15,000 level. From the sectoral front, Bank stocks outperformed the benchmark index as ended with gain of more than 4%. Along with that, Capital Goods Metal, Oil & Gas, Power and Reality stocks also contributed to the positive attitude. However, Consumer Durables stocks remained out of favor as witnesses most of the selling from this basket. The BSE Sensex closed higher by 461.14 points at 14,944.97 and NSE Nifty ended up by 130 points at 4,482.30. The BSE Mid Caps and Small Caps closed with gains of 66.17 points at 5,819.89 and by 77.55 points at 6,982.77. We expect that market may remain gave up its gains during the trading session.

On Monday, the US market closed higher as US government announced to takeover troubled mortgage giant Freddie Mac and Fannie Mae. Light sweet crude for October delivery ended marginally higher at $106.34 a barrel on the New York Mercantile Exchange, after rising as high as $109.89 a barrel and falling as low as $US104.70.

The Dow Jones Industrial Average (DJIA) closed higher by 289.78 points to close at 11,510.74 followed by the S&P 500 (SPX) ended up by 25.48 points to close at 1,267.79 and the NASDAQ index gained 13.88 points to close at 2,269.76.

Indian ADRs ended mixed. In technology sector, Wipro ended higher by (3.19%) followed by Infosys advanced by (0.15%), while Patni Computers plunged by (1.17%) and Satyam lost (0.64%). In banking sector HDFC Bank and ICICI Bank gained (4.07%) and (1.20%). In telecommunication sector, Tata Communication ended and MTNL surged (5.88%) and (0.45%). Sterlite industries increased by (2.85%).

Today the major stock markets in Asia are trading lower on profit booking. Hang Seng index is trading weaker by 454.06 points at 20,340.21 along with Taiwan Weighted trading down by 190.21 points at 6,468.48, Japan’s Nikkei plunged 185.43 points at 12,439.03 and Singapore''s Straits Times lost 44.88 points at 2,652.15.

The FIIs on Monday stood as net seller in equity and net buyer in debt. Gross equity purchased stood at Rs1,713.90 Crore and gross debt purchased stood at Rs549.60 Crore while the gross equity sold stood at Rs3,450.70 Crore and gross debt sold stood at Rs34.40 Crore. Therefore, the net investment of equity reported was (Rs1,736.80) Crore and net debt was Rs513.30 Crore.

The partially convertible rupee ended at 44.60/61 per dollar, 0.1% stronger than 44.64/65 of Friday, when it fell to a low of 44.75, a level it last traded on Dec. 21, 2006. The Indian rupee edged back from early gains on Monday to end marginally stronger as hefty dollar demand from oil firms and some foreign banks weighed.

Today, Nifty has support at 4,388 and resistance at 4,553 and BSE Sensex has support at 14,583 and resistance at 15,217.