Pre-Market report on 05.05.2008

[N.Sukumar]

Consolidation is the name of the game.Select midcaps to shoot to fame
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Dow Jones after a decisive break out on thursday has decided to take
it easy on friday with a nominal gain 48.20 points to close at
13,058.20, while Nasdaq was down 3.72 points to end at 2,476.99. Crude
shot up 3.8 USD to end the day at $116.32/barrel. Japanese and South
Korean markets were closed for a holiday today.

Warren Buffett said Saturday that the risk of a major financial
meltdown has declined recently but cautioned not to expect big gains
from the stock market in future years.

The markets are likely to see deep and long correction. Sluggish
economies and increasing food/crude prices are definitely a setback to
the stock market rallies and corrections are possible but the
meltdowns and huge crashes are not in the offing in the current
econimic scenario. We might not see new highs soon enough but we will
definitely not see new lows.

GMR Infra(GMR Infra : Ready to beak?) continue to march ahead on the
International arena bagging a 20-year licence to operate the airport
in the Turkish capital and agreed to reduce the duration for building
the terminal from the agree time of 30 months to 18 months along with
two other companies.

SBI, has beaten all expectations with an impeccable Q4 performance.The
bank has shown a 26.1 per cent growth even in the fourth quarter (Q4)
to Rs 1883 crore from Rs 1493 crore in the corresponding period during
FY ’07. While announcing the annual results of the banks on May 2, in
Kolkata, the chairman of the SBI group, OP Bhat told that the group as
a whole, has registered a net profit of Rs 8960 crore.

Midcap stocks are likely to rally again given the subdued global cues
and operators are likely to have a field day again. Stocks that
witnessed stunning volumes on friday include Graphite India(1.25
million), IndusInd Bank(5.5 million), HDIL (5.2 million), KS Oils (4.7
million), DCB (5.2 million), Geojit Financial (11.5 million), Noida
Toll Bridge (4.3 million), NIIT Tech (1.6 million), Orchid Chemicals
(8.5 million).

Markets require another 1000 points rally for the BSE Sensex,
especially a midcap rally for the investor confidence to restore.
Commodity bubble is growing bigger day by day and we expect crude to
come down soon. Have a great trading day

Market Close Box
BSE Sensex 17600.12 312.809
NSE Nifty 5228.20 62.30
USD Rs.40.65
Oil Nymex $116.3

N.Sukumar
Research Analyst