Pre-Market report on 23.04.2008

[N.Sukumar]

Another tight range on cards
===================================================Wall Street turned
red after below par results from Texas Instruments and
couple of other negative set of data. The Dow Jones Industrial Average
fell
104.71 points to end at 12,720.31. The S&P 500 declined 12.22 points
to
1,375.95, while the Nasdaq Composite shed 31.1 points to stand at
2,376.94.
Crude is conquering unbeleivable heights and is currently trading at
$119.50,
a barrel.Yahoo after hours declared results which will go unnoticed
due to
the current tussel with Microsoft. Indian markets are unlikely to be
impacted
by global cues and midcap stocks continue to bump up after a rocky 3
month
period. TCS took the rest of the IT pack down yesterday but capital
goods led
by BHEL turned out to be a saviour. Educomp, Everest Kanto, Indian
Bank,
Polaris(buy back approval also) will declare the Q4 numbers today.

Undoubtedly market has witnessed some kind of bullish favour
returning
especially in the midcap space in the last fortnight. But investor
confidence
is yet to be restored with many brokerage houses, analysts and so
called Big
Bulls predicting another round of carnage before moving up. US Credit
crisis
is blamed, much talked about when ever an analyst is approached for
views.
But how many of us know the surprise earnings declared by major US
tech
companies are driven by International sales and weak dollar. This
clearly
indicates the domestic sluggishness in the US is countered and infact
overtaken by the bullish economic conditions surviving across the
globe.

Come this quarter we appear to be in a different set of troubles
starting
from the food crisis across the globe, higher crude resulting spike
in
inflation. Govts of emerging countries were forced to ban exports on
many of
the agri commodities. We expect the situation to worsen soon before
restoring. But many stock markets have factored in the current crisis
and
there is a major commodity bubble forming in crude. It is definitely a
dilema
to investors whether to get out and comeback when things get better or
to
stay invested. We would like to advice the investors the later
approach and
sitting partially in cash is not a bad idea.

Our analysis indicate the markets are unlikely to give many chances
for
investors to accumulate on the downside.Indian Markets are likely to
maintain
status quo today with a minor negative bias. Continue to stick with
quality
midcaps and you may not be disappointed.

Market Close Box
BSE Sensex 16783.87 44.54
NSE Nifty 5049.30 12.30
USD Rs.39.94
Oil Nymex $119.5

N.Sukumar
Research Analyst