Pre Session Commentary - July 22 2008

The Indian Market is expected to have negative opening on the back of unfavorable global cues as US market ended lower and Asian markets are trading mixed. On Monday, the Indian market closed with gains after going through little volatility during the trading session. The domestic market yesterday opened on firm note, tracking strong cues from the Asian markets. Further, market trimmed its initial gains as investors were taking calculative steps on political worries but later managed to gather and maintain the higher momentum to close with good gains. The BSE Sensex ended above 13,800 mark and NSE Nifty closed above 4,100 level. From the sectoral front, the Bank and Pharma indices closed with a gain of more than 3%. Along with this Reality, Metal and Oil & Gas stocks also witnessed buying interest. However, Capital Goods and Consumer Durables stocks were major sufferers of negative sentiment. The BSE Sensex closed higher by 214.64 points at 13,850.04 and NSE Nifty ended up by 67.25 points at 4,159.50.

We expect that market may remain volatile during the trading session and crucial trust vote will set direction for the market. There will be vote of confidence in parliament today, which will decide UPA’s continuation as a government.

On Monday, the US market was closed in red as oil turned higher after a sharp drop last week by more than $2 to above $US131 a barrel. An announcement by Bank of America also added to negative sentiment about its second-quarter profit of $3.4 billion to $1 billion, down 41% from previous year.

The NASDAQ ended lower by 29.23 points at 11,467.34, followed by the Dow Jones Industrial Average (DJIA) closed lower by 3.25 points at 2,279.53 along with S&P 500 ended down by 0.68 points at 1,260.00.

Indian ADRs ended down. In technology sector, Satyam ended down by (5.22%) along with Wipro closed down by (3.05%), Infosys by (2.45%) and Patni Computers dropped by (2.13%). In banking sector, HDFC bank gained by (1.66%) while ICICI bank lost (0.13%). In telecommunication sector, Tata Communication ended up by (0.10%) and MTNL ended down by (0.44%). Sterlite industries increased by (3.59%).

Today the major stock markets in Asia are trading mixed Japan’s Nikkei is trading higher by 165.31 points at 12,969.01 while Hang Seng index trading down by 24.36 points at 22,508.54 and Taiwan Weighted trading at 7,071.49 dropped by 14.18 points.






The FIIs on Monday stood as net buyer in equity. The gross equity purchased was Rs2,988.40 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,399.20 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was Rs589.20 Crore and net debt was Rs0.00 Crore.

Today, Nifty has support at 4,081 and resistance at 4,221 and BSE Sensex has support at 13,576 and resistance at 14,106.