Pre-Market Report: 30.06.2009

[B. Karthick]

Midcaps to dominate, Stock likely to gain further

Stocks in Mumbai are headed for another flat day with cautious
optimism as investors are likely to hold their investments. The fear
in the market has subsided to a great extent as things look much
better than they seemed in March. We expect the benchmark index or the
Sensex to gain nearly 50 to 100 points for the day.

A jump in oil prices sent investors rushing to put money into the
stock market and helped gains in the indices on Wall Street. The Dow
Jones industrial average rose 90.99, or 1.1 percent, to 8,529.38. The
S&P 500 index rose 8.33, or 0.9percent, to 927.23, while the Nasdaq
composite index rose 5.84, or 0.3 percent, to 1,844.06.

On the commodities front, Crude rose $2.33 to settle at $71.49 a
barrel on the New York Mercantile Exchange after China said it would
boost oil reserves and Nigerian militants partly shut down an offshore
oil platform. Watch out for Oil stocks like Cairn India for some gains
today.

In an interesting development, the government is proposing to increase
foreign direct investment in Direct-to-Home (DTH) to 74 per cent, and
up to 24 per cent in FM Radio.We like Dish TV Rs 40.10, Sun Tv Rs 243
and our favorite Rs 179. Bag Films and Adlabs are other companies that
have minor exposure to FM radio.

Investors have punished Tata Motors, which fell more than 8 percent on
reporting huge loss for the quarter and the Suzlon Energy got it's
share of treatment as investors dumped the stock after lacklustre
results. It will be interesting to see how the stock of Pyramid
Saimira reacts to the news of sale of its assets abroad.

As expected midcaps fared better yesterday with a 1.14 percent against
a 0.14 percent gain on the Sensex. JP Hydro, Praj Ind, Indus Ind Bank,
Educomp and Glory Polyfilms are some of the stocks to keep on radar
from a short term perspective.