Pre-Market Report: 16.09.2009

[B. Karthick]

Sensex on its way to make a new high

Stocks on Dalal Street are likely to hold on to the big gains from
yesterday as investors grow increasingly confident over the speed of
recovery. Expect the benchmark index or the Sensex to gain nearly 0.5
percent or 80 to hundred points for the day.

Better news on retail sales and manufacturing helped send stocks
higher Tuesday, as did comments from Federal Reserve Chairman Ben
Bernanke that the recession was probably over.The Dow rose 56.61, or
0.6 percent, to 9,683.41,the S&P 500 index rose 3.29, or 0.3 percent,
to 1,052.63, while the Nasdaq composite index rose 10.86, or 0.5
percent, to 2,102.64. All three indicators are at their highest levels
for 2009.

Realty and Metal sectors have witnessed lot of activity on Tuesday's
session. Jindal Steel led the metals pack with a 7 percent gain, while
gains in Unitech and DLF boosted the Realty sector.The latest data on
the the advance tax collections for the second quarter of the current
financial year have shown robust growth of 35 to 40 per cent across
industries reinforcing the view that the recession is over.

SepThe stock of Natco Pharma Ltd climbed the most in more than six
years after U.S. regulators accepted for filing its partner Mylan
Inc.’s application for a generic version of Copaxone. The stock was
locked in 20 percent circuit at Rs 124. There is a lot of room to the
upside after some consolidation at current levels. Banks were back in
action as stocks of Lakshmivilas Bank, Indian Bank and BOI managed to
register double digit gains. The stock Rajesh Exports is looking
explosive after a 10 percent move on heavy volume. The rise in the
price of gold and hopes of increased demand during the festive season
boosted the stock. We have a target of Rs 80 on the stock.