Pre-Market report on 27.03.2008

[Sukumar]

Sensex and Nifty ready for a roller coaster ride
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Stocks were on a down trend on the wall street following weaker
economic data. Drop in February's durable goods orders, fall in sales
of new homes & surge in crude oil prices resulted in a 109.74 point
dip in Dow Jones and 16.69 point fall in Nasdaq. Tech sector is in for
a retreat with Oracle indicated customers delaying spending. After
hours the company declared good Q3 numbers but the new software sales
disappointed the street and the stock was beaten down 8 percent in the
post market trades. Indian Tech stocks might feel the heat in today's
trade though Oracle is a product related company while Indian IT
Industry mostly depends on services. US fourth quarter GDP will be
announced on Thursday which is expected to come in at 0.7% after a
preliminary reading of 0.6% in late February. With discussions of
recession a hot topic on Wall Street investors are anxiously awaiting
the 8:30 a.m. report and hoping the sluggish growth does not slip into
negative territory.

Japanese stocks started the day in the red with Nikkei losing 95
points at12,611.83. Yen continued to gain and is trading at 99.08 USD.

Tata Motors surprised the world second time in two months after the
company announced to buy Jaguar and Land Rover luxury brands from Ford
for USD 2.3 billion. Under the agreement, Ford will continue to supply
Jaguar and Land Rover with power trains, stampings and other vehicle
components along with various environmental and platform technologies,
the company said. The company is planning to export Nano to Europe
too. The stock is subdued from the last one year given the domestic
slow down due to increase in interest
rates.

Indian Bourses yesterday went on a roller coaster ride with bears
showing their presence. Today is the D-day for F&O expiry and the
volatility will drive traders crazy. From the roll over data next
month trend seems to be more uncertain with Q4 numbers pouring in. We
expect slow down in the growth but many stocks will look attractive
after the results. Realty stocks witnessed good pull back in the last
couple of days and it is time to consolidate. IT stocks are likely to
play down due to Oracle's weak sales numbers in the US.

Market Close Box
BSE Sensex 16086.83 -130.66
NSE Nifty 4828.85 -48.65
USD Rs.40.14
Oil Nymex $105.9

N.Sukumar
Research Analyst
www.kences1.blogspot.com