Pre-Market report on 21.04.2008

[K.Karthik Raja]

Reliance, Satyam, TCS to perform a "Google" Act
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It is reigning bumper results from the tech giants on the Wall Street.
It
started with Intel(upping the guidance), IBM beating projections,
RIMM
doubling the revenues and now Google, the undisputed king of the new
age
internet world dismissed fears of many wall street analysts with a 31
percent
jump in first-quarter profits. We leave it to the investors whether
the above
positive events tend to make us still beleive whether we are in
recession,
not to forget our home grown IT major Infosys's guidance. Dow Jones
surged
past the magic 12,750 to end at 12,849, up 228 points. Nasdaq closed
up 61.14
points at 2,402.97

Japanese markets jumped 215 points on weak Yen and on wall street
surge last
friday.

RBI hikes CRR by 50 basis points; Inflation cools down to 7.14 percent

Reserve Bank of India (RBI) as expected hiked the cash reserve ratio
(CRR) in
a bid to suck out excess liquidity from the system.RBI which is
supposed to
meet on 29th April decided to step ahead in order to impound Rs 18,500-
crore
liquidity from the banking system.

But many banks are unlikely to pass on the CRR hike through interest
rate
hike to the consumers immediately. We mentioned many times to avoid
Banking,
Realty, Brokerage stocks for the time being as these sectors are
interest
rate sensitive. But we do not foresee a panic kind of situation as the
market
is anyways expecting a rate hike on 29th April. Tech stocks are likely
to
continue the rally and fertilizer stocks gained ground on the reports
of a
good monsoon.

Reliance, Satyam and TCS will be reporting numbers and we expect the
RBI CRR
hike to be nullified by good numbers by these companies.

Power stocks witnessed some strength on thursday and might be in
limelight
today. Day by day market movements are trying to restore confidence
but
volumes are still lacking. Nifty crossed the decisive level of 4947
but we
believe today's close above that level will trigger fresh buying. In a
short
Monday's trade might give an opportunity for buying in the initial
moments on
the back of CRR hike but there is inherent strength in the market
which will
prevent the market to go down. Place your bets.

Market Close Box
BSE Sensex 16481.20 237.01
NSE Nifty 4958.40 71.10
USD Rs.39.96
Oil Nymex $117.0

K.Karthik Raja