Pre-Market Report on 01.09.2008
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B. Karthick
Sep 1, 2008, 12:21:27 AM9/1/08
to Kences1
Stocks in Dalal Street headed for a lower open
===================================================
Stocks in Dalal Street are set to open lower on the first day of the
week. Negative global cues and the possibility of a spike in the oil
due to the storm Gustav might have an impact on the Indian markets.
Markets in Asia opened lower this morning in the wake of a sharp pre-
weekend fall on Wall Street, with Japanese stocks led lower by
exporters. Both Dow and Nasdaq incurred heavy losses on Friday setting
a negative tone for the global markets. Expect the Sensex to lose more
than a percent in today's trade, after a big rally on Friday.
On the domestic front the new chairman of the Prime Minister’s
economic advisory council, Prof. Suresh D. Tendulkar said there is no
need for RBI to further hike the interest rates. RIL might see some
brisk trading today on the news reports that the company is gearing up
to start production from the largest gas discovery in the world at
Krishna-Godavari basin, within a few months. Stay away from banking
and Realty stocks today as the stocks in these sectors might witness
some profit booking after a good move last week.
Markets are likely to head southward during the first half of the
week. The tropical storm Gustav might strain Oil inventories and fuel
a fresh rally in the Crude and this might weigh down on the equities.
Even though there has been respite on the inflation front this week,
the data on economic growth is alarming and might confirm a slow down
in the economy if it continues the same way. The economy expanded 7.9
percent in the three months to June 30 from a year earlier, following
an 8.8 percent gain in the previous quarter. This is the slowest pace
since 2004.
We can attribute the slow down to record inflation and also slow down
in consumer spending due to tightening of money flow by the RBI in the
form of higher interest rates. Expect a uncertain/ Volatile week
ahead. It is not advisable to take huge positions on either side as
the the direction on the indices is still obscure.
Suitable stocks for intraday today:
<ICICIBANK, RCOM, INFOSYSTCH, BHEL, ONGC, ABAN, TCS, JSWSTEEL, GAIL,
M&M>
Market Close Box:
BSE Sensex 14564.53 516.19
NSE Nifty 4360.00 146.00
USD Rs.43.73
Oil Nymex $115.5
B.Karthick
Research Analyst.
===================================================
Stocks in Dalal Street are set to open lower on the first day of the
week. Negative global cues and the possibility of a spike in the oil
due to the storm Gustav might have an impact on the Indian markets.
Markets in Asia opened lower this morning in the wake of a sharp pre-
weekend fall on Wall Street, with Japanese stocks led lower by
exporters. Both Dow and Nasdaq incurred heavy losses on Friday setting
a negative tone for the global markets. Expect the Sensex to lose more
than a percent in today's trade, after a big rally on Friday.
On the domestic front the new chairman of the Prime Minister’s
economic advisory council, Prof. Suresh D. Tendulkar said there is no
need for RBI to further hike the interest rates. RIL might see some
brisk trading today on the news reports that the company is gearing up
to start production from the largest gas discovery in the world at
Krishna-Godavari basin, within a few months. Stay away from banking
and Realty stocks today as the stocks in these sectors might witness
some profit booking after a good move last week.
Markets are likely to head southward during the first half of the
week. The tropical storm Gustav might strain Oil inventories and fuel
a fresh rally in the Crude and this might weigh down on the equities.
Even though there has been respite on the inflation front this week,
the data on economic growth is alarming and might confirm a slow down
in the economy if it continues the same way. The economy expanded 7.9
percent in the three months to June 30 from a year earlier, following
an 8.8 percent gain in the previous quarter. This is the slowest pace
since 2004.
We can attribute the slow down to record inflation and also slow down
in consumer spending due to tightening of money flow by the RBI in the
form of higher interest rates. Expect a uncertain/ Volatile week
ahead. It is not advisable to take huge positions on either side as
the the direction on the indices is still obscure.
Suitable stocks for intraday today:
<ICICIBANK, RCOM, INFOSYSTCH, BHEL, ONGC, ABAN, TCS, JSWSTEEL, GAIL,
M&M>
Market Close Box:
BSE Sensex 14564.53 516.19
NSE Nifty 4360.00 146.00
USD Rs.43.73
Oil Nymex $115.5
B.Karthick
Research Analyst.
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