Pre-Market Report on 23.09.2008

[B. Karthick]

Markets looks shaky, as investors become apprehensive about the
financial markets

Stocks look for a lower open as investors are getting apprehensive
about the future of the equity markets. Expect the market to lose
nearly 150 points or nearly 1 percent for the day.

Things got worse on Wall Street as volatility swept the financial
markets again Monday as investors grew nervous about an amorphous
government plan to buy $700 billion in banks' mortgage debt.The Dow
fell 372.75, or 3.27 percent, to 11,015.69 and the Nasdaq composite
index fell 94.92, or 4.17 percent, to 2,178.98.

Asian stocks are expected to open lower following the trend in the US
markets. Oil prices briefly spiked more than $25 a barrel Monday,
shattering the record for the biggest one-day gain as short covering
led to the sky rocketing price on the last day of the October
Contract. The November contract ended the day at $ 109.37.

Coming to the domestic markets the Government liberalised the external
commercial borrowings policy. This will allow infrastructure companies
to avail themselves of borrowings of up to $500 million a year, as
against the existing limit of $100 million, for rupee expenditure
under the approval route. Although this looks like a good move, it
will not be good enough to boost the sentiment in Infra Structure
stocks.Ranbaxy Laboratories continues to have a cascading regulatory
effect, with the Canadian drug regulator and the German regulator
decided to be particularly cautious about drug marketing applications
from the drug company.

We advise investors to sit on the sidelines till the volatility
subsides in the market. If you plan on investing for the long run,
just stick to fundamentally strong stocks and accumulate in a
disciplined way in small lots. Stay away from banking and realty
sectors. May it is time to take a second look at the commodity stocks.

Suitable stocks for intraday today:
<ICICIBANK, LT, BHEL, KOTAKBANK, STER, JINDALSTEL, MARUTI, SUNPHARMA,
TATASTEEL, ABAN>

Market Close Box:
BSE Sensex 13994.96 -47.36
NSE Nifty 4223.05 -22.20
USD Rs.45.40
Oil Nymex $120.0

B.Karthick
Research Analyst.