Pre-Market report on 08.08.2008
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SUKUHOPES
Aug 8, 2008, 12:02:37 AM8/8/08
to Kences1
Global weakness in equities to weigh on Indian stocks
===================================================
Stocks in the Indian market are set to open lower on negative global
cues and some profit booking after a minor rally in equities this
week. Expect a 200-250 point decline in the Sensex in today's trade.
U.S. stocks fell the most in a week after American International Group
Inc.'s unexpected loss dragged down financial shares and Wal-Mart
Stores Inc.'s forecast for slower sales growth sent retailers lower.
Oil for September delivery added 1.2 percent to $120.02 a barrel after
Turkey said a pipeline carrying crude to the Mediterranean from
Azerbaijan may remain shut for two weeks following an explosion on
Tuesday.
On the domestic front the BSNL saga has taken an interesting turn as
Bharat Sanchar Nigam Ltd (BSNL) has rejected an employee stock option
(Esop) offer by Communications Minister A Raja to coincide with the
company’s initial public offer. MTNL might be a huge gainer if the IPO
goes through as market men believe that there is a possibility of a
merger with BSNL post IPO.
Banking stocks might see some short term pressure as we have seen a
some swift gains in the sector especially SBI, in the last 2 weeks and
record inflation might prompt another round of rate hike. Cement
makers feel their margins will remain under pressure for the next
several quarters as excess capacity build up in the country is
expected to keep prices from moving up.
In a separate development a government panel suggested raising fuel
prices every month to bring them in line with production costs and
sought a special tax on oil fields awarded before 1999. If these
recommendations if accepted will force companies like Cairn India,
Reliance and ONGC to pay more tax.
Expect a lacklustre session with a gap down opening. It is not a bad
idea to sit out of the market today.
Suitable stocks for "Intraday " today
<BHARTIARTL,DLF,RELINFRA,HDFC,STER,RANBAXY,MARUTI,CAIRN,CENTURYTEX,INDIAINFO>
Market Close Box
BSE Sensex 15117.25 43.71
NSE Nifty 4523.85 6.30
USD Rs.41.89
Oil Nymex $120.0
N.Sukumar
Research Analyst
===================================================
Stocks in the Indian market are set to open lower on negative global
cues and some profit booking after a minor rally in equities this
week. Expect a 200-250 point decline in the Sensex in today's trade.
U.S. stocks fell the most in a week after American International Group
Inc.'s unexpected loss dragged down financial shares and Wal-Mart
Stores Inc.'s forecast for slower sales growth sent retailers lower.
Oil for September delivery added 1.2 percent to $120.02 a barrel after
Turkey said a pipeline carrying crude to the Mediterranean from
Azerbaijan may remain shut for two weeks following an explosion on
Tuesday.
On the domestic front the BSNL saga has taken an interesting turn as
Bharat Sanchar Nigam Ltd (BSNL) has rejected an employee stock option
(Esop) offer by Communications Minister A Raja to coincide with the
company’s initial public offer. MTNL might be a huge gainer if the IPO
goes through as market men believe that there is a possibility of a
merger with BSNL post IPO.
Banking stocks might see some short term pressure as we have seen a
some swift gains in the sector especially SBI, in the last 2 weeks and
record inflation might prompt another round of rate hike. Cement
makers feel their margins will remain under pressure for the next
several quarters as excess capacity build up in the country is
expected to keep prices from moving up.
In a separate development a government panel suggested raising fuel
prices every month to bring them in line with production costs and
sought a special tax on oil fields awarded before 1999. If these
recommendations if accepted will force companies like Cairn India,
Reliance and ONGC to pay more tax.
Expect a lacklustre session with a gap down opening. It is not a bad
idea to sit out of the market today.
Suitable stocks for "Intraday " today
<BHARTIARTL,DLF,RELINFRA,HDFC,STER,RANBAXY,MARUTI,CAIRN,CENTURYTEX,INDIAINFO>
Market Close Box
BSE Sensex 15117.25 43.71
NSE Nifty 4523.85 6.30
USD Rs.41.89
Oil Nymex $120.0
N.Sukumar
Research Analyst
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