Pre-Market Report - 29.02.2008

[Sukumar]

A likely Thumbs Up to FM's budget today
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US Markets slipped today after a 4 day consecutive rally.DOW JONES
lost nearly 112 points at 12,582.18 and NASDAQ ended the day by 22
points at 2,331.57. We see this as a one wonder for bears and are
upbeat on the US Markets for a medium term only based on technicals.

Indian Markets are in no mood to couple with global markets from the
last couple of days though F&O settlement tried to create ripples.
Markets are lacklustre and are expected to react sharply on the up
today unless Mr.Chidambaram hands over a negative surprise. With very
low expectations set in the run up to budget the downsides are
negligible. Lets take a peek at the Industry wish list.

1. IT Sector - Looking for an extension of the STPI (Software
Technology Park
of India) scheme, which expires on March 31, 2009.

2. Telecom Sector - Looking for a cut in license fee

3. Oil Sector - Looking for series of tax and duty changes related to
oil
product retailing, exploration activities and natural gas

4. Textiles - More sops to the sector like enhanced TUF(Technology
Upgradation Fund).

5. Consumer Durables - Looking for more attention in the form of
incentives
as a slow down is visible.

6. Automobile - Looking forward to a reduction in excise duties.

7. Pharma - Looking for Price control and tax benefit from investments
in R&D

8. Agricommodities - We believe this sector is likely to grab major
attention
today from Mr. FM

9. Fertilizers - More subsidies look imminent here

10. Infrastructure - Looking for more allocations towards the
development of
infrastructure in the country

General
=======
Positives : Increase in FII investment in sectors like such as
media,
banking and insurance.

Negatives : Likely tax net on Mauritius registered VC's

It is always tough to read the mind of the FM, proved number of times.
But the expectation that the budget will prefer the common man will be
spot on as the Government will try to pacify him along with the
political allies in the wake of next year's general elections.
Majority analysts feel the budget is a non-event. We think otherwise
and this is the only opportunity for Bulls to take advantage visible
for the next 40 days or so. Keep fingers crossed and the coin tossed
till Mr.Chidambaram opens the mystery bag. Have a great trading day.

Market Close Box :

BSE Sensex 17824.48 -1.51
NSE Nifty 5285.10 16.70
USD Rs.39.73
Oil Nymex $99.70