Pre Market Report : 12.06.2008
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N.Sukumar
Jun 12, 2008, 12:15:21 AM6/12/08
to Kences1
Stocks headed for a lower open as global sentiment worsens
===================================================
Stocks are headed for a lower open after a smart recovery yesterday on
the back of negative cues from the US, spike in crude prices and the
interest rate hike by the central bank.
Oil prices on the New York Mercantile Exchange closed up by $5.07 at
$136.38 before making a high of $ 138.30 for the day. The energy
department data released today showed that gasoline supplies grew last
week but that crude oil inventories fell more than expected.The Dow
Jones industrial average fell more than 200 points its lowest close in
the past 3 months. Investors are now concerned that the rise in Oil
prices will prompt the Federal Reserve to raise the interest rate one
more time.
RBI late yesterday raised its key lending rate by 25 basis points
from 7.75 percent to 8.00 to contain inflation expectations but left
all other rates unchanged. The hot discussion today is about how big
of an impact it would make on the Sensex and todays's trade as a
whole. As mentioned in the pink papers and the TV channels, this
development is not totally unexpected. we have been expecting a rate
hike some time or the other and so now that the news is out we do not
see a major Knee-Jerk reaction in the indices. But the there might
some impact of the weak global sentiment, which might pull down the
Sensex by nearly 2 percent for the day.
BHEL made a smart move by gaining nearly 7 percent yesterday on the
news that Bharat Heavy Electricals Ltd (Bhel) is close to receiving an
order for 50 onshore oil rigs from West Asia, expected to be worth
around Rs5,000 Crore. Realty and Banking stocks might be tensed in
early morning trade. Pharma as a sector might continue its run after
the Ranbaxy deal which came in as a shocker. we see Aurobindo, Cipla,
Lupin, Sun Pharma and Glenmark as the possible targets for global
majors who would like to get a piece of the generic market. Overall we
think market will be down, but do not expect a crash or a carnage in
the street.
Suitable stocks for intraday trading
<RELIANCE,INFOSYSTECH,LT,UNITECH,TATASTEEL,SBIN,IBREALEST,NTPC,JINDALSTEL,
ABAN>
Market Close Box
BSE Sensex 15185.32 296.07
NSE Nifty 4523.60 73.80
USD Rs.42.89
Oil Nymex $131.3
N.Sukumar
Research Analyst
===================================================
Stocks are headed for a lower open after a smart recovery yesterday on
the back of negative cues from the US, spike in crude prices and the
interest rate hike by the central bank.
Oil prices on the New York Mercantile Exchange closed up by $5.07 at
$136.38 before making a high of $ 138.30 for the day. The energy
department data released today showed that gasoline supplies grew last
week but that crude oil inventories fell more than expected.The Dow
Jones industrial average fell more than 200 points its lowest close in
the past 3 months. Investors are now concerned that the rise in Oil
prices will prompt the Federal Reserve to raise the interest rate one
more time.
RBI late yesterday raised its key lending rate by 25 basis points
from 7.75 percent to 8.00 to contain inflation expectations but left
all other rates unchanged. The hot discussion today is about how big
of an impact it would make on the Sensex and todays's trade as a
whole. As mentioned in the pink papers and the TV channels, this
development is not totally unexpected. we have been expecting a rate
hike some time or the other and so now that the news is out we do not
see a major Knee-Jerk reaction in the indices. But the there might
some impact of the weak global sentiment, which might pull down the
Sensex by nearly 2 percent for the day.
BHEL made a smart move by gaining nearly 7 percent yesterday on the
news that Bharat Heavy Electricals Ltd (Bhel) is close to receiving an
order for 50 onshore oil rigs from West Asia, expected to be worth
around Rs5,000 Crore. Realty and Banking stocks might be tensed in
early morning trade. Pharma as a sector might continue its run after
the Ranbaxy deal which came in as a shocker. we see Aurobindo, Cipla,
Lupin, Sun Pharma and Glenmark as the possible targets for global
majors who would like to get a piece of the generic market. Overall we
think market will be down, but do not expect a crash or a carnage in
the street.
Suitable stocks for intraday trading
<RELIANCE,INFOSYSTECH,LT,UNITECH,TATASTEEL,SBIN,IBREALEST,NTPC,JINDALSTEL,
ABAN>
Market Close Box
BSE Sensex 15185.32 296.07
NSE Nifty 4523.60 73.80
USD Rs.42.89
Oil Nymex $131.3
N.Sukumar
Research Analyst
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