Pre Open Market Commentary

Indian market is likely to open on positive note today. Yesterday, market closed higher as investors cheered on the news regarding estimated GDP growth of 9.2% that was above the RBI''s forecast of 8.5-9% in financial year ending March 2007. As a result, BSE sensex closed at 14643.13 up by 164.94 points and Nifty was up by 28.35 points to close at 4224.25. The outlook for the market is guarded optimism with volatility as the global cues are not impressive.

Wednesday, US markets closed flat as after falling oil prices hurt energy stocks and overshadowed a stronger-than-expected productivity reading. DOW closed up 0.56 points at 12666.87 and NASDAQ was up by 19.01 points to close at 2490.50.

Indian ADRs closed mixed on Wednesday. In the technology sector, while Infosys edged up 3.01% and Sify edged up 3.25%, Wipro gained 1.87% and Satyam up 1.83%. Tata Motors ended down 1.35%. Among banks, HDFC Bank closed up 1.40% and ICICI Bank edged up 2.49%. In the telecom space, VSNL gained 2.30% while MTNL ended down 0.95%.

The major stock markets in Asia are trading lower on Thursday. Nikkei 225 index was adding 44.93 points at 17337.25. Hang Seng was down 229.68 points at 20450.01, KOSPI plunged 9.36 points at 1416 and Straits Times fell 15.79 points at 32220.81. Oil price closed below at $58 a barrel.

Today, Nifty has support at 4185 and resistance at 4,245 and BSE Sensex has support at 14,375 and resistance at 14,750. However, it is our advice to watch trading session carefully.

FIIs were net purchasers to the tune of Rs656.00crores in equity (provisional) on 7th February 2007. Mutual funds were net sellers to the tune of Rs28.28crores in equity (provisional) on 6th February 2007.