Pre-Market report on 02.04.2008

[Ravi Chandran.K]

Bulls swung into full action on wall street wasting no time in the
new
quarter. Dow Jones Industrials gained 391.47 points, or 3.2%, to
12,654.36
and Nasdaq spiked 83.65 points, or 3.7%, to 2,362.75. Earnings kick
start in
the next week and lack of warnings from the companies and indications
of the
credit crisis coming to an end fuelled the broad based rally.

Inflation concerns and forex derivative crisis blocked the bull road
for D-
Street from the last two days. Decoupling from global markets when
cues are
positive and joining the bandwagon in case of negative cues has become
a
regular habit for Sensex and Nifty. FII Selling followed by Nifty
manipulation is seen regularly from the last 2 months. Soon the
markets will
face the reality with Q4 numbers ready to start pouring in from next
week. We
expect the numbers to be decent though diminishing growth on a Q-O-Q
basis is
imminent. The current stock prices have already priced in the negative
growth
and it is just a matter of time Indian markets will synchronize with
US
markets.

We are a firm believer of Indian Economic story and the current
situation is
just a dark cloud and will pass with time. Midcaps are likely to be in
the
limelight and so will be Index stocks today given the Euphoria
witnessed in
the US markets. IT stocks are likely to recover and will lead the pre-
result
rally if one pans out. Watch out for KS Oils, Bartronics and BGR
Energy in
today's trade.

Market Close Box

BSE Sensex 15626.62
NSE Nifty 4739.55
USD Rs.39.97
Oil Nymex $100.9

Ravichandran K.