Pre Market Commentary - Nov 23 2009

Headlines for the day

Future group to launch 10-15 brands every year - Business Line

Rolta to buy US-based inalnd security tech company -DNA Money

Emami eyes acquisitions - DNA Money

Nalco in talks with bank for Rs10,000 crore Iran project - Business Standard

RIL may fuel India Inc's overseas M&A drive - Business Standard

Events for the day

Major corporate action:

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Nil

Market Commentary

Global signals

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On Friday, the European shares ended the week on a negative note, with the major indices sliding for the fourth session on a trot owing to the banking and energy stocks that acted as a drag on the markets. FTSE 100 closed 0.31% lower at 5251.

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Even the major US indices declined for the third consecutive day, however marginally, due to weaker results posted by the computer maker Dell. Dow recovered early losses and closed almost flat at 10318, losing 0.1%.

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In today's trade, the major Asian indices are trading mixed, wherein Shanghai Composite, Hang Seng and Strait Times remained in the green with marginal gains in the range of 0.26%-0.36% each. While rest all the indices are trading in red with marginal losses. At the time of writing this report, SGX Nifty that opened flat, slides marginally by by 12 points.

Indian markets

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With mixed cues coming from the global front, the domestic markets are expected to open weak and remain range bound. While the volatility will continue.

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Among the local indices, the Nifty could test the 5100-5150 range on the up side, while on the down side it could find support at 5000 and 4920. While the Sensex is likely to get support at 16900 and may face resistance at 17300.

Indian ADR's

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Among the Indian ADRs trading on the US bourses, only Wipro and Rediff closed in the red with a loss of 0.15% and 0.67% respectively. While the rest ADRs closed in the green with the gains in the range of 0.32%-2.92% each wherein HDFC Bank surged the most.

Commodity cues

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In the commodity space, the Crude oil prices fell marginally, with the Nymex light crude oil for December series declining by $0.56 to settle at $76.90 a barrel.

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In the metals space, the yellow metal continues to surge with the Comex Gold for December series rising by $6.60 to settle at $1148.50 a troy ounce, while Comex Silver for December series almost remained flat, fell by mere $0.01 to settle at $18.45 to a troy ounce.

Daily trend of FII/MF investment in equities

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On November 20, 2009, FIIs were the net sellers of the Indian Stocks in the tune of Rs334.30 crore (with the gross purchase of Rs2083.50 crore and gross sales of Rs2417.80 crore).

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While the Domestic mutual funds mutual funds, on November 19, 2009, were the net seller of the stocks in the tune of Rs176.70 crore (with gross purchase of Rs509.50 crore and gross sales of Rs686.20 crore).