Pre Session Commentary - July 2 2009

Today domestic markets are likely to open positive today as the Asian markets are trading in northward on the back of phenomenal Chinese official purchasing managers’ index which inclined for the 4th straight month. The index rose to seasonally adjusted 53.2 in June from 53.1 in May. The index reading above 50 indicates expansion in Manufacturing. One could witness a positive gap opening with a firm buying trend across broader level along with an essence of minor volatility.

On Wednesday, domestic markets closed with moderate gains. After a subdued opening the markets turned volatile due to mixed cues from the Asian markets and lack of domestic news. The traders were cautious about the sentiments prevailing in the Asian markets and therefore later during the mid session benchmark indices could not hold its firmness due to profit booking pressures. However the firm northward trend in the European markets thrust the buying sentiment of domestic investors at broader level. Sectors like Realty, Teck, Bankex and Auto gained by 4.25%, 1.56%, 1.33% and 1.26% respectively. BSE Midcap and Smallcap were also in the charm of the day and managed to record gains of 1.01% and 0.30% respectively. The markets are likely to trade positive today.

The BSE Sensex closed up by 151.63 points at 14,645.47 and NSE Nifty ended down by 49.80 points at 4,340.90. BSE Mid Caps closed with gains of 51.17 points and 17.38 points at 5,127.51 and 5,757.42 respectively. The BSE Sensex touched intraday high of 14,727.49 and intraday low of 14,355.52.

On Wednesday, the US Markets closed in green. The markets openend with phenomenal northward trend however it could not withstand the profit booking pressures. There was a broad based buying sentiment across broader level in the morning trade. The latest ADP report shows a higher-than-expected the 473,000 job losses for the month of June and many traders believe that job losses in tomorrow''s report could exceed the forecasted 363,000 number. May pending home sales data inclined by 0.1% month-over-month and the construction spending during the month of May declined by 0.9%. The June ISM Manufacturing Index recorded in-line at 44.8 indicating a contraction since the Index is below 50. US light crude oil for August Futures delivery declined by 0.8% at $69.35 per barrel on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) gained 57.06 points at 8,504.06 the NASDAQ Composite (RIXF) index gained by 10.68 points at 1,845.72 and the S&P 500 (SPX) inclined by 4.01 points at 923.33.

Today major stock markets in Asia are trading positive. Hang Seng is up by 155.97 points at 18,534.70. Shanghai Composite is up by 27.06 points at 3,035.21. Japan''s Nikkei is trading up by 12.93 points at 9,952.86. Strait Times is low by 9.75 points at 2,342.80. KLSE Composite is flat at 1,079.40.

Indian ADRs ended in green on Wednesday. In the banking space, ICICI Bank was up 4.17% and HDFC Bank was up 0.96%. In the telecom space, Tata Communication was up 2.95% 4 and MTNL was up 1.61%.In the IT space, Satyam Computers was up 4.5%, Infosys was up 1.5%, Patni Computers was up 1.19%, while Wipro was down 0.85%. In other sectors, Tata Motors was up 3.87%, Sterlite Industries was up 1.85% and Dr Reddy''s Labs was up 1.06%.

The FIIs on Wednesday stood as net buyers in equity and net sellers in debt. The Gross equity purchased stood at Rs 2,952.10 Crore and gross debt purchased stood at Rs 133.60 Crore, while the gross equity sold stood at Rs 2,723.20 Crore and gross debt sold stood at Rs 379.40 Crore. Therefore, the net investment of equity and debt reported were Rs 228.90 Crore and Rs (245.80) Crore respectively.

On Wednesday, the partially convertible rupee ended at Rs 47.89/90, flat as compared to its previous close at 47.90/91. The local stock markets kept gyrating the whole trading day.

On BSE, total number of shares traded were 37.39 Crore and total turnover stood at Rs 5,770.71 Crore. On NSE, total number of shares traded was 88.45 Crore and total turnover was Rs 16,660.11 Crore.

On NSE Future and Options, total number of contracts traded in index futures was 838845 with a total turnover of Rs 17,434.22 Crore. Along with this total number of contracts traded in stock futures were 621599 with a total turnover of Rs 17,793.90 Crore. Total numbers of contracts for index options were 862464 with a total turnover of Rs 19,091.13 Crore and total numbers of contracts for stock options were 41263 and notional turnover was Rs 1,293.81 Crore.

Today, Nifty would have a support at 4,369 and resistance at 4,412 and BSE Sensex has support at 14,715 and resistance at 14,882.