Pre-Market Report on 15.09.2008

[B. Karthick]

Markets set to slide as credit storm hits Wall Street
=========================================

Markets are set for a wild ride this morning as the news of Lehman's
failure might cause wild swings in the market.U.S. stock-index futures
tumbled on concern Lehman Brothers Holdings Inc. will file for
bankruptcy and add to banks' $514 billion of subprime-related losses.
Stock markets in Japan, Korea, Hong Kong and China are closed for
holidays today.

Expectations that the 158-year-old Lehman would survive dimmed Sunday
afternoon after Barclays PLC withdrew its bid to buy the investment
bank. Barclays' and Bank of America were considered front-runners to
buy Lehman, which is foundering under the weight of $60 billion in
soured real estate holdings. Even as Lehman's rescue efforts faltered,
Merrill Lynch and Bank of America had reportedly entered merger talks.

Stay away from banking stocks as they are expected to be on the line
of fire and the price movements will hugely dependent on the news flow
from abroad. Meanwhile the finance ministry said on Sunday that the
government does not propose to transfer control and management of
public sector banks to the private sector. The ministry in a statement
said that the government will hold not less than 51 per cent of the
equity in the public sector banks.

Metal stocks are expected to continue their slide as the chances of a
bounce in the commodity markets look grim. It looks like the market
will break the 14,000 mark as we might see a correction of nearly 2
percent on uncertainty related to the storm in Wall Street.

We might see some pressure on select Indian stocks in which Lehman has
sizable chunk of shares. It is a great idea to stay away from the
market and wait on the sidelines. Banking, Realty, Metals and Oil &Gas
are the sectors to be stricly avoided in today's trade.

Suitable stocks for intraday today:
<ICICIBANK, BHEL, DLF, STER, RCOM, AXISBANK, MARUTI, TCS, ABB,
GTOFFSHORE>

Market Close Box:
BSE Sensex 14000.81 -323.48
NSE Nifty 4228.45 -61.85
USD Rs.45.77
Oil Nymex $101.1

B.Karthick
Research Analyst.