Pre-Market Report on 22.09.2008

[K.Karthik Raja]

Markets look to move up with cautious optimism
Sep 22, 2008

Stocks in India look to have a positive opening and will look to
consolidate
after a gain of more than 5 percent for the sensex on Friday. Expect
for a 1
to 2 percent move on the Senssex in today's trade.

Meanwhile US Treasury Secretary Henry Paulson asked lawmakers to act
quickly
on a rescue plan for U.S. markets, saying that it's urgently needed
to
stabilize the financial system and protect the economy and taxpayers.
So we
might see some clarity on the plan soon.

Japan will likely get a new prime minister this week and the Nikkei
is
expected to rally this week after the news is out.Shanghai Composite
is also
likely to inch up on news that the government might take some measure
to aid
the ailing stock markets.The futures in all Asian markets are pointing
north
suggesting a bullish mood across the globe. Crude oil fell for the
first
time in four days as Nigerian militants stopped attacks on oil
facilities.
Crude Oil futures after gaining 15 percent in the last 3 days have
given
back a percent to settle at $ 103.69 for October delivery.

The news flow over the weekend from the Indian corporates are very
impressive and might help in holding the momentum from last week. RIL
stock
might be on the limelight today as the company, aims to supply more
than 40
percent of the nation's requirement of oil and gas in about 18 months.
On
the Other hand Essar Steel Holdings Ltd which acquired Minnesota
Steel
Industries LLC last year, plans to invest $4 billion to expand its
operations in North America.

Rupee is likely to strengthen against dollar on the news of a bail out
plan
by the US government, which might weaken the greenback. The stock of
Ranbaxy
might recover some ground as news reports suggest that the government
might
take up the issue of the ban imposed by the FDA on the company's
drugs.All
pointers indicate a positive opening for the index and RIL is the
scrip to
watch out among the index based stocks.

Market Close Box:

BSE Sensex 14042.32 726.72
NSE Nifty 4245.25 207.10
USD Rs.46.32
Oil Nymex $104.5

K.Karthik Raja
Research