Pre-Market report on 11.04.2008
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Sukumar
Apr 10, 2008, 11:56:51 PM4/10/08
to Kences1
Early gains seen; Reliance Industries likely to shine
====================================================
Walmart, the discount retail giant raised outlook and Wall Street
greeted the same with Dow Jones closing with a gain of 54.72 points at
12,581.98 while Nasdaq is up 29.58 points to close at 2,351.70.
Japanese stocks gained in the initial trades with Nikkei gaining
around 138 points at 13,083 on strong global cues. Yesterday Bank of
England cut interest rates by 25 basis points to 5 percent. We expect
the Fed to cut rates another round by 25 to 50 basis points later this
month.
Meanwhile midcap stocks continued to gain some of the lost ground in
the last 3 months. Textile sector is witnessing bargain hunting and
might see good moves today too. Stocks from midcap tech space are
looking good after cooling off yesterday. Two tier tech stocks are big
movers in the beginning of the week. Economic Times reports that
Reliance Industries (RIL) has initiated talks with global majors to
offload upto 10% stake in its D-6 block in the Krishna Godavari (KG)
basin. We believe this is a strategic move by the Indian giant and is
likely to propel the markets today. Many global majors are likely to
show interest in the stake. RIL is likely to produce 50 percent more
gas than earlier expected from KG basin, easing the local demand. The
Bombay High Court on Friday will start hearing the Reliance Natural
Resources (RNRL) and Reliance Industries (RIL) case over the vexed gas
supply issue on a day-to-day basis.
Once the deal goes through all the companies in the domain like Cairns
India will be re-rated. Tata Tele Services(Mah) announced the transfer
of the Tower business to a wholly owned subsidiary. The company is
close to selling the stake in the tower domain to American Tower
Company(ATC). It appears SREI Infrastructure's subsidiary Quippo
Infrastructure Equipment is also in the fray. The company was alloted
the CDMA spectrum in North East, Assam and Jammu & Kashmir recently.
The stock is likely to gain in the coming days on
the above positive factors.
NTPC declared weak fourth-quarter numbers with profit falling 39
percent, lowest since November 2004. Salary costs and capacity
additions are cited as the reasons behind the weak results.
Textile stocks Alok Textiles, Mudra Lifestyle are looking good
technically in today's trade. Markets are likely to open with a minor
gap and continue to trade positively. We expect the inflation numbers
during noon and might not have an impact on the markets today. Telecom
Infrastructure major GTL will be announcing numbers today. Midcaps are
expected to continue the north bound journey.
Market Close Box
BSE Sensex 15695.10 -95.41
NSE Nifty 4733.00 -14.05
USD Rs.39.95
Oil Nymex $110.1
N.Sukumar
Research Analyst
www.kences1.blogspot.com
====================================================
Walmart, the discount retail giant raised outlook and Wall Street
greeted the same with Dow Jones closing with a gain of 54.72 points at
12,581.98 while Nasdaq is up 29.58 points to close at 2,351.70.
Japanese stocks gained in the initial trades with Nikkei gaining
around 138 points at 13,083 on strong global cues. Yesterday Bank of
England cut interest rates by 25 basis points to 5 percent. We expect
the Fed to cut rates another round by 25 to 50 basis points later this
month.
Meanwhile midcap stocks continued to gain some of the lost ground in
the last 3 months. Textile sector is witnessing bargain hunting and
might see good moves today too. Stocks from midcap tech space are
looking good after cooling off yesterday. Two tier tech stocks are big
movers in the beginning of the week. Economic Times reports that
Reliance Industries (RIL) has initiated talks with global majors to
offload upto 10% stake in its D-6 block in the Krishna Godavari (KG)
basin. We believe this is a strategic move by the Indian giant and is
likely to propel the markets today. Many global majors are likely to
show interest in the stake. RIL is likely to produce 50 percent more
gas than earlier expected from KG basin, easing the local demand. The
Bombay High Court on Friday will start hearing the Reliance Natural
Resources (RNRL) and Reliance Industries (RIL) case over the vexed gas
supply issue on a day-to-day basis.
Once the deal goes through all the companies in the domain like Cairns
India will be re-rated. Tata Tele Services(Mah) announced the transfer
of the Tower business to a wholly owned subsidiary. The company is
close to selling the stake in the tower domain to American Tower
Company(ATC). It appears SREI Infrastructure's subsidiary Quippo
Infrastructure Equipment is also in the fray. The company was alloted
the CDMA spectrum in North East, Assam and Jammu & Kashmir recently.
The stock is likely to gain in the coming days on
the above positive factors.
NTPC declared weak fourth-quarter numbers with profit falling 39
percent, lowest since November 2004. Salary costs and capacity
additions are cited as the reasons behind the weak results.
Textile stocks Alok Textiles, Mudra Lifestyle are looking good
technically in today's trade. Markets are likely to open with a minor
gap and continue to trade positively. We expect the inflation numbers
during noon and might not have an impact on the markets today. Telecom
Infrastructure major GTL will be announcing numbers today. Midcaps are
expected to continue the north bound journey.
Market Close Box
BSE Sensex 15695.10 -95.41
NSE Nifty 4733.00 -14.05
USD Rs.39.95
Oil Nymex $110.1
N.Sukumar
Research Analyst
www.kences1.blogspot.com
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