Pre Session Commentary - May 9 2008

Today the market is likely to have negative opening due to weak cues from the Asian markets. On Thursday, the Indian market closed with heavy losses due to heavy selling pressures across the sectoral indices. Due to lack of investors interest in buying as the cues from the global markets like the crude oil prices reached to record high of $123 a barrel led the investors to take cautious steps to book their further positions. The BSE Sensex closed lower by 258.66 points at 17,080.65 and NSE Nifty fell by 53.8 points to close at 5,081.70. We expect that the market may remain volatile during the trading session and the declaration of the inflation figures by the government will give further direction to the market.

On Thursday, the US market closed in green. The Dow Jones Industrial Average (DJIA) closed higher by 52.43 points at 12,866.78 along with S&P 500 grew by 5.11 points to close at 1,397.68 and NASDAQ higher by 12.75 points to close at 2,451.24.

Indian ADRS closed in red. In technology sector, Infosys fell by 0.95% along with Patni Computers by 1.62%. In banking sector, HDFC bank and ICICI bank dropped by (0.08%) and (2.71%) respetively. In telecommunication sector, MTNL and Tata Communication slipped by (0.98%) and (0.88%). Dr Reddy’s declined by (0.58%).

Today the major stock markets in Asia are trading weak. Japan’s Nikkei is trading lower by 127.58 points at 13,815.68 along with Hang Seng index trading down by 40.78 points at 25,409.01 and Taiwan Weighted trading at 8,842.47 down by 24.15 points.

The FIIs on Thursday stood as net buyer in equity while net seller in debt. The gross equity purchased was Rs3,475.70 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs3,110.60 Crore and gross debt sold stood at Rs12.60 Crore. Therefore, the net investment of equity reported was Rs325.10 Crore and net debt was (Rs12.60) Crore.

Today, Nifty has support at 4,947 and resistance at 5,148 and BSE Sensex has support at 16,719 and resistance at 17,330.