Pre Market - Nov 4 2009

Headlines for the day

Pranab hints at subsidy rollbacks to rein in fiscal

Mahindra Satyam ties up with defence firm Saab

RCom introduces per-second billing plan

Tata Motors, Ashok Leyland rush to increase bus supply

HC stays Trent plans for Star Bazaars in Delhi

Events for the day

Major corporate action: Ex-date for interim dividend of Nestle Industries and Page Industries and the ex-date for the stock split of Shree Ganesh Spinners from Rs10 to Re1

Market Commentary

Global signals

* The stocks in the European markets tumbled by over 1% each on the back of the European Union making case of exiting the fiscal stimulus.

* On the back of the some bearish news in the financial sector, the first day of the Federal Reserve's two-day policy meeting doubled with sharp rally by the oil and gold prices, the US markets gave mixed bag performance. The Nasdaq and S&P 500 closed marginally higher with gains of 0.40% and 0.24% respectively, while Dow fell marginally with loss of 0.18%.

* While in todays trade, the all Asian markets were trading in the green with the gains in the range of 0.37%-1.80% each, except for the Nikkei 225 which was trading marginally lower by 0.07%. After last few days of losses, even SGX Nifty opened higher with decent gains, while at the time of writing this report it was trading stronger with gains of 72 points over its previous close.

Indian markets

* Sensex in todays trade may open gap-up on the back of marginally positive cues from the Asian market, however it may remain volatile and choppy. The domestic markets have corrected sharply by over 11%in last few days. However, today it might recover a part of its yesterday losses.

* Among the local indices, the Nifty could test the 4600- 4750 range on the up side, while on the down side it could find support at 4500 and 4460. The Sensex is likely to get support at 15000 and may face resistance at 15700.

Indian ADR's

* Among the Indian ADRs trading on the US bourses, Infosys, Satyam, Tata Motors, ICICI Bank and MTNL ended the day in green with marginal gains in the range of 0.35%- 2.22%, with Tata Motors gaining the most.

* While rest all ADR's closed in red with losses in the range of 0.21%-7.95% each, with VSNL losing the most.

Commodity cues

*

In the commodity space, Crude oil prices continued to rise, with the Nymex light crude oil for December series surging by $1.47 to close at $79.60 a barrel.

*

In the metals space, the Comex Gold for December series jumped sharply by $31.20 to settle at $1085.20 a troy ounce, while Comex Silver for December series rose by $0.75 to settle at $17.19 a troy ounce.

Daily trend of FII/MF investment in equities

*

On November 03, 2009, FIIs were the net buyers of the Indian Stocks in the tune of Rs735.70 crore (with the gross purchase of Rs4072.50 crore and gross sales of Rs3336.80 crore).

*

While the Domestic mutual funds mutual funds, on October 30, 2009, were the net buyer of the stocks in the tune of Rs114.80 crore (with gross purchase of Rs1336.20 crore and gross sales of Rs1221.40 crore).