Pre Market Report - 22.07.2008

[K.Karthik Raja]

Stocks to open flat ahead of the vote
Jul 22, 2008 | 07:20 AM IST

Stocks are headed to open flat and trade in a narrow band ahead of the
vote of confidence on the government.Expect a positive move in the
sensex towards the end of the day.

Stocks in Wall Street ended with out doing much on Monday. the dow
ended down 0.25 percent or 29 points at 11,467.34 and the Nasdaq ended
down 0.14 percent at 2,279.53. Oil made a pull back on news that
hurricane Dolly might cause disruptions to U.S. offshore oil and gas
production. Disappointing outlook from Apple and American Express
after hours might be an overhang on the Asian markets which are
expected to open lower.

Banks and Realty dominated yesterdays trade and banks might extend
their rally for another day. All eyes are on the Vote today and
majority of the online poll predicts a comfortable victory for the
government. This might be a huge positive to the banking, insurance
and PSU sectors which might see some reforms.

It is time for buybacks in the market. The boards of HEG and Zee
Enterprises are expected to meet next week to consider a buy back of
their shares, as they believe that their shares are undervalued. IDBI
Bank, NIIT Technologies, Tata Elexsi and Lupin Ltd are some of the
notable companies reporting their Q1 numbers today.

Keep banking stocks on the radar for a decent trade. Ignore IT for now
and look for some engineering stocks like Punj Lloyd and agri-
commodities like Renuka Sugars.

Previous Close Box:

BSE Sensex 13845.47 210.07
NSE Nifty 4159.50 67.25
USD Rs.42.71
Oil Nymex $130.2

K.Karthik Raja
Research Analyst