Pre-Market Report - 05.02.2008

[K.Karthik Raja]

Pre-Market Report - 05.02.2008

US rally takes a break; Indian markets still awake

US Market rally paused today after a big jump on friday last week. The
Dow
Jones industrial index closed down 108 points at 12,635.16 and Nasdaq
closed
at 2,382.85 down by 30.51 points. This appears to be one of the
toughest
fights in the recent years between bulls and bears on the wall
street.
Clarity will bring in huge upside/downsides. We are with the Bulls in
the
current scenario but not with out these hiccups.

Indian Markets had a dream run in the last two days gaining nearly
1000
points. Reliance Communications lead the rally yesterday on the IPO
news of
the Tower company. We believe majority of the telecom companies are
trying to
unlock the share holder value by de-merging their towers business.
Infrastructure and realty stocks was clearly yesterday's leaders in
the
market. We are not bullish on this space except for one or two stocks.

Hyderabad based IT company Prithvi Information solutions bagged a huge
order
worth Rs 309 crores. The company has tied up with China-based Huwei
Technologies, to source the equipment. The stock recently witnessed
fund
buying.

Steel ministry is reported to be looking into the price hikes by many
of the
operators. IT Stocks, mentioned in our reviews from the last couple of
days
logged in good gains. Rolta jumped 23% yesterday on the rumours of a
major
defense order. We expect the Sensex to trade with in 100 point band on
either
side today. Midcaps and small caps might continue the upward journey.