Pre-Market Report on 26.09.2008
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Sukumar.N
Sep 26, 2008, 12:09:11 AM9/26/08
to Kences1
Deal or No Deal; Markets playing the waiting game
===================================================
Indian markets are expected to open flat and might take a direction in
the second half of the trade as investors are frustrated with the
equities as they have become increasingly hard to predict. BAIL OUT
has taken center stage as major institutions and even retail players
have their eyes poised on US as market men believe that the outcome
could have an impact on our economy.
U.S. stocks advanced, led by banks, as investors speculated Congress
would agree on a $700 billion bailout of financial institutions to
help revive credit markets. Futures retreated in after-hours trading
on concern the rescue plan hit a snag. The Dow gained 1.82 percent
where as the NASDAQ gained 1.43 percent. Both the indices gave up
nearly half of their gains in after hours trade.
Congressional leaders said they struck an agreement in principle on a
massive, unprecedented package to rescue the staggering U.S. financial
system on Thursday but sticking points including objections from some
House Republicans remained even after a meeting with President Bush
about the plan. Asian stocks are expected to be flat on the growing
uncertainty about the bail out.
Crude-oil futures closed above $108 per barrel Thursday, finding
support from news that bailout plan is closer to approval as well as
from falling U.S. product inventories and storm-damaged energy
facilities in the Gulf of Mexico. With foreign institutional investors
preferring debt to equity in India, the government is mulling a hike
in the cap imposed on FII investment in the debt market at a meeting
slated for later this month.The limit on FIIs investment in corporate
debt was raised to $3 billion from $1.5 billion and $5 billion in
government securities from $3.2 billion in June.
ONGC and Cairn India could be good bets for short term investors as
the price of oil is getting dearer. Man Ind made a good move yesterday
on securing an order worth more than 1000 Crores.Concerns of equity
dilution (rights issue) took a toll on Suzlon which has lost nearly 8
percent yesterday.
Ranbaxy Laboratories Ltd’s woes continued with New Zealand’s health
ministry saying that three drugs imported into that country will be
voluntarily quarantined by the suppliers till further tests are done.
We recommend a 'Strong Accumulate' on Ranbaxy and Rs 280-290 band is a
good band to accumulate this stock. The stocks of Raymonds and
Wockhardt might see some action on the news flow.
Market Close Box
BSE Sensex 13547.18 -145.34
NSE Nifty 4110.55 -50.70
USD Rs.46.25
Oil Nymex $108.0
Suitable stocks for 'Intraday' today
<ICICIBANK,BHARTIARTL,DLF,AXISBANK,TCS,BHEL,STER,GAIL,TATAPOWER,BPCL>
N.Sukumar
Research Dept.
===================================================
Indian markets are expected to open flat and might take a direction in
the second half of the trade as investors are frustrated with the
equities as they have become increasingly hard to predict. BAIL OUT
has taken center stage as major institutions and even retail players
have their eyes poised on US as market men believe that the outcome
could have an impact on our economy.
U.S. stocks advanced, led by banks, as investors speculated Congress
would agree on a $700 billion bailout of financial institutions to
help revive credit markets. Futures retreated in after-hours trading
on concern the rescue plan hit a snag. The Dow gained 1.82 percent
where as the NASDAQ gained 1.43 percent. Both the indices gave up
nearly half of their gains in after hours trade.
Congressional leaders said they struck an agreement in principle on a
massive, unprecedented package to rescue the staggering U.S. financial
system on Thursday but sticking points including objections from some
House Republicans remained even after a meeting with President Bush
about the plan. Asian stocks are expected to be flat on the growing
uncertainty about the bail out.
Crude-oil futures closed above $108 per barrel Thursday, finding
support from news that bailout plan is closer to approval as well as
from falling U.S. product inventories and storm-damaged energy
facilities in the Gulf of Mexico. With foreign institutional investors
preferring debt to equity in India, the government is mulling a hike
in the cap imposed on FII investment in the debt market at a meeting
slated for later this month.The limit on FIIs investment in corporate
debt was raised to $3 billion from $1.5 billion and $5 billion in
government securities from $3.2 billion in June.
ONGC and Cairn India could be good bets for short term investors as
the price of oil is getting dearer. Man Ind made a good move yesterday
on securing an order worth more than 1000 Crores.Concerns of equity
dilution (rights issue) took a toll on Suzlon which has lost nearly 8
percent yesterday.
Ranbaxy Laboratories Ltd’s woes continued with New Zealand’s health
ministry saying that three drugs imported into that country will be
voluntarily quarantined by the suppliers till further tests are done.
We recommend a 'Strong Accumulate' on Ranbaxy and Rs 280-290 band is a
good band to accumulate this stock. The stocks of Raymonds and
Wockhardt might see some action on the news flow.
Market Close Box
BSE Sensex 13547.18 -145.34
NSE Nifty 4110.55 -50.70
USD Rs.46.25
Oil Nymex $108.0
Suitable stocks for 'Intraday' today
<ICICIBANK,BHARTIARTL,DLF,AXISBANK,TCS,BHEL,STER,GAIL,TATAPOWER,BPCL>
N.Sukumar
Research Dept.
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