Thursday, August 21, 2008

Pre Session Market - Aug 21 , 2008

The Indian Market is expected to have positive opening as the US market closed in green. On Wednesday, the market closed with gains after breaking its five days losing streak. The domestic market opened on positive note tracking favorable cues from the Asian markets as China lifted up the sentiments. Further market continued to trade in positive territory and gain ground till the end of session. Strong European markets also lifted the positive attitude. NSE Nifty ended above 4,400 mark and BSE Sensex above 14,600 level. From the sectoral front, most indices closed with gains and among those Metal, Capital goods, Reality, Pharma and Oil & Gas stocks were leaders of day as able to gain most of the favor from market. Mid cap and Small cap stocks also witnessed buying interest. However FMCG stock remained out of favor as most of the selling was seen from this basket. The BSE Sensex closed higher by 134.50 points at 14,678.23 and NSE Nifty ended up by 47.50 points at 4,415.75. The BSE Mid Caps and Small Cap closed with gains of 60.05 points and 53.49 points at 5,826.37 and 7,066.23 respectively. We expect that market may remain volatile during the trading session ahead of inflation number for the week ended 9th August 2008, due to be released today evening.

Nuclear Suppliers Group (NSG) is meeting today to decide on waiver for India. The NSG waiver for India will mean the government can enter into nuclear commerce with countries like Russia and France, despite results of the 123 Agreement on the Indo-US civilian nuclear co-operation in the US Congress.

On Wednesday, the US market was closed higher, despite rise in crude oil due to late rally in banks and better than expected results from Hewlett-Packard. Hewlett-Packard reported quarterly earnings of $0.83, which topped expectations by three cents. Crude oil closed at $114.98 a barrel on the New York Mercantile Exchange, rising for a second day

The Dow Jones Industrial Average (DJIA) closed higher by 68.88 points to close at 11,417.43. The S&P 500 (SPX) increased by 7.85 points to close at 1,274.54 and the NASDAQ index gained 4.72 points to close at 2,389.08.

Indian ADRs ended mixed. In technology sector, Patni Computers ended higher by (3.13%) followed by Wipro advanced by (1.47%), while Infosys dropped by (0.42%) and Satyam by (0.23%). In banking sector ICICI bank and HDFC Bank gained (3.98%) and (3.68%). In telecommunication sector, Tata Communication ended up by (1.04%) while MTNL dropped by (1.90%). However, Sterlite industries increased by (3.24%).

Today the major stock markets in Asia are trading weak despite Wall Street gains. Hang Seng index is trading lower by 309.44 points at 20,621.82 along with Taiwan Weighted trading down by 78.95 points at 6,961.95, Japan’s Nikkei trading 12,807.13 dropped by 44.56 points and Singapore''s Straits Times is down by 19.31 points at 2,732.44.

The FIIs on Wednesday stood as net seller in equity and net buyer in debt. The gross equity purchased was Rs2,830.80 Crore and the gross debt purchased was Rs97.60 Crore while the gross equity sold stood at Rs3,966.60 Crore and gross debt sold stood at Rs51.80 Crore. Therefore, the net investment of equity reported was (Rs1,135.80) Crore and net debt was Rs45.90 Crore.

The Indian currency dropped for a seventh day lowest in almost 17 months on speculation that demand for dollars increased as crude oil prices rebounded from a 15-week low. The partially convertible rupee ended at 43.70/72 per dollar, a quarter of a per cent weaker than Monday''s close of 43.59/60.

Today, Nifty has support at 4,322 and resistance at 4,484 and BSE Sensex has support at 14,354 and resistance at 14,952.

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