Friday, March 28, 2008

Pre Session Market

The Indian Market is likely to have a negative opening today due to unfavoring cues from the global markets. On Thursday, the Indian market closed on a mixed note with NSE Nifty closed with marginal gains while Sensex closed in negative. Also, the global concerns February durables goods report by the US government raised fresh doubts about the economy of US. As per the commerce department, the durables goods fell 1.7%, which was the second monthly fall in a row. Also, the sales of new homes fell b1.8% in February for the fourth consecutive month as the steep slump in housing continued. Also, the expiry of the derivatives contract today adds to the sentiment. From the sectoral front, the Realty and Metal index remained in the limelight as most buying was witnessed from these baskets. While the Mid Cap and Small Cap, which faced the selling pressures at the initial session managed to recover from the fall to post good gains. The BSE Sensex closed lower by 71.27 points at 16,015.56 while NSE Nifty closed up by 1.4 points at 4,830.25. We expect that the market may remain volatile during the trading session and the declaration of inflation figures by the government of India will give further directions to the market.

On Thursday, the US market closed in negative territory. The Dow Jones Industrial Average (DJIA) closed lower by 120.40 points at 12,302.46 along with S&P 500 (SPX) index fell by 15.37 points to close at 1,325.76 and NASDAQ Composite (RIXF) dropped by 43.53 points to close at 2,280.83.

The Indian ADRS closed in negative. In technology sector, Satyam fell by (4.20%) along with Infosys by (1.94%) and Patni Comp by (0.36%). In banking sector, ICICI bank slipped by (3%). In telecommunication sector, Tata Communication and MTNL dropped by (6.43%) and (1.39%) respectively. Tata Motors decreased by (3.40%).

Today the major stock markets in Asia are trading firm. Hang Seng is trading higher by 287.18 points at 22,951.40 along with Taiwan Weighted trading up by 29.22 points at 8,635.17 and Singapore Strait Times trading at 3,031.24 up by 6.04 points.

The FIIs on Thursday stood as net buyer in equity while the net seller in debt. The gross equity purchased was Rs3,166.60 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,609 Crore and gross debt sold stood at Rs138.60 Crore. Therefore, the net investment of equity reported was Rs557.60 Crore and net debt was (Rs138.60 Crore).

Today, Nifty has support at 4,704 and resistance at 4,903 and BSE Sensex has support at 15,634 and resistance at 16,328.

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