Pre Session Commentary - Oct 1 2008

Today the Market would open in green as the US market showed some sign of relief and also the major Asian markets have opened on positive note. The House of Representatives have also decided for a reviewed bail out plan to be disclosed on the end of the week. One could see some positive momentum today as the over all atmosphere of the domestic financial industry looks good on the back of assertion from the Finance minister as well as the RBI about the financial industry’s strength and resilience.

On Tuesday, the market opened with a brutal loss, but later during the post mid session it recovered enough to end in the green territory. The optimism in the market was seen after the Asian markets started recovering from their opening trade loss. Further, the European market also showed some sign of relief as CAC 40, FTSE and many other indices opened in positive note and also ended in green. This positive influence was further augured by the assertion from the Finance minister and RBI about the resilience of Indian financial sector. The RBI further clarified about the ICICI bank’s liquidity strength in its current account with the RBI to meet the requirements of its depositors. The banks have also borrowed a whopping Rs.90,075 Crore from the RBI through the LAF so as to meet their liquidity requirements. Besides, banks have also urged RBI to relax its CRR and Repo rate and infuse more money in the liquidity stricken financial industry. Therefore during the day Bankex was leading the sectoral indices with a gain of 4.92% followed by Realty and CG at 3.02% and 2.96% respectively. During the trading session we expect the market to remain range bound.

The BSE Sensex closed with a phenomenal gain of 264.68 points at 12,860.43 and NSE Nifty ended down by 135.2 points at 3,850.05. The BSE Mid Caps and Small Caps closed with gains of 68.96 points and 24.44 points at 4,798.29 and 5,577.47. The BSE Sensex touched intraday high of 12,995.20 and intraday low of 12,153.55.

On Tuesday, the US market gained some momentum and closed in green after a heavy blood bath on the previous day. The positive momentum in the US market was backed by some news that the Congress is still working on some bail out plan to rescue the current crisis. Crude oil for November delivery closed at $100.64 per barrel on the New York Mercantile Exchange, up $4.27, or 4.4%, after falling as low as $97.80.

The Dow Jones Industrial Average (DJIA) was up by 485.21 points at 10,850.66 along with NASDAQ index which was up by 98.60 points at 2,082.33 and the S&P 500 (SPX) was also higher by 58.35 points to close at 1,164.74 points.

Indian ADRs ended in green. In technology sector, Wipro was up by (9.79%), Patni Computers was up by (5.08%). In banking sector HDFC Bank and ICICI Bank grew by (7.74%) and (9.46%). In telecommunication sector, Tata Communication and MTNL grew (5.74%) and (11.57%). Sterlite Industries increased by (6.88%).

Today the major stock markets in Asia opened in green following the trend of the US market which also closed in green. Hang Seng index is trading up by 135.53 points at 18,016.21. Followed by, Japan''s Nikkei which was up by 77.54 points at 11,337.40 and Singapore''s Straits trading is closed due to local holiday.

The FIIs on Tuesday stood as net buyers in equity and debt. Gross equity purchased stood at Rs3394.60 Crore and gross debt purchased stood at Rs308 Crore, while the gross equity sold stood at Rs3007.70 Crore and gross debt sold stood at Rs138.20 Crore. Therefore, the net investment of equity and debt reported were Rs387 Crore Rs169.80 Crore respectively.

On BSE, total number of shares traded were 30.03 crores and total turnover stood at Rs5,179.86 Crore. On NSE, total volumes of shares traded were 63.59 crores and total turnover was Rs14793.95 Crore.

Top traded volumes on NSE Nifty – ICICI Bank with total volume of 21452818 shares followed by Suzlon Energy 21379313 shares, Unitech 14207104 shares, SAIL 12961546 shares and Reliance Petro 11293997 shares.

On NSE Future and Options, total number of contracts traded in index futures was 1025921 with a total turnover of Rs18738.96 Crore. Along with this total number of contracts traded in stock futures were 1034688 with a total turnover of Rs15239.54 Crore. Total number of contracts for index options was 1046757 and total turnover was Rs21747.05 Crore and total number of contracts for stock options was 51755 and notional turnover was Rs824.09 Crore.

Today, Nifty would have a support at 3,850 and resistance at 4,205 and BSE Sensex has support at 12,550 and resistance at 13,115.