Pre-Market report on 15.07.2008

[suguhopes]

Another down day in the offing
===================================================
The Indian markets are headed for another day down for the fourth
session in a row as bad news continue to flow from the US markets. We
expect the market to hold the 13,000 level for the day and the midcaps
might continue to be resilient to the decline.

Stocks in US closed down extending the losing streak, the Dow lost
nearly half a percent, where as the technology based NASDAQ lost more
than a percent. Financials as a sector continue to be a cause of
concern for the investors and is weighing down on the sentiment. Fed's
bail out plan of Fannie and Freddie failed to enthuse the investors as
concerns that other major banks might fail over shadowed the rescue
plan.Asia opened lower for the second consecutive day as a report said
that Japan's top three banks hold more than $40 billion in Fannie Mae
and Freddie Mac debt.

Metals as a sector is expected to outperform the market in the short
term, where as IT and Realty are some of the sectors to avoid for the
time being. Meanwhile Oil continues its ascent as the sweet crude for
August delivery gained 10 cents to settle at $145.18 a barrel on the
New York Mercantile Exchange.Ranbaxy might continue to see some
pressure even today on the US probe and we see this as an overhang on
the stock in the short run, even though eventually the company might
come out clean in the future.

New listings continue to disappoint as we have not seen a single new
listing trading above its issue price in the past one month. Axis bank
came out with decent results for the Q1 reporting a 89 percent jump in
profit year on year on increase interest income and advisory fee. The
results from Axis makes up believe that even though banking sector
might see a slide in the coming months, it is not a bad idea to
accumulate bluechip banks like ICICI and SBI in small lots. Reliance
might see some action on the news that the company has roped in 17
banks to arrange a $ 1 billion to fund its fund its future expansion
plans in the KG basin and futher increase capacity of Reliance
Petroleum refinery.

Suitable stocks for "Intraday"
<RELCAPITAL,RELINFRA,LT,HDFC,SBIN,TATASTEEL,TATAPOWER,HDIL,NATIONALUM,PNB>

Market Close Box
BSE Sensex 13330.51 -139.34
NSE Nifty 4039.70 -9.30
USD Rs.42.82
Oil Nymex $145.1


N.Sukumar
Research Analyst