Pre-Market Report on 18.09.2008

[B. Karthick]

Cracks in Wall Street likely to spread to Dalal Street

Stocks in India are ready to get slammed once again as the weakness in
global markets might effect the sentiment. There is a good chance that
the Sensex will break 13,000 level in today's trade.

U.S. stocks were slammed hard again on Wednesday, with the Dow Jones
Industrial Average skidding to its lowest close since late 2005, as
tightening credit conditions intensified fears about further failures
in the financial sector.The Dow Jones Industrial Average fell 4.1%.
and S&P lost nearly 4.9 percent for the day. Nasdaq registered its
second triple digit loss since Sept 2001.

Washington Mutual, the nation's largest thrift, has put itself up for
sale, the New York Times reported on Wednesday.JP Morgan, Wells Fargo
and HSBC are expected to be in the fray.Japanese stocks tumbled early
Thursday, hit hard by worries about global financial markets and after
Wall Street suffered steep losses overnight, with banks like Sumitomo
Mitsui Financial Group.The Nikkei 225 Average lost 3.2% to 11,375.81.

Look for some more pain in ICICI Bank as things are obscure on kind of
exposure that the bank has to the global markets . Expect nearly a 5
to 6 percent hair cut to the stock. Meanwhile Ranbaxy seems vulnerable
as the stocks has been hit by slew down grades after the FDA imposed
restriction on nearly half of the products manufactured by the company
citing sub par manufacturing practices.

Banking, Realty and metal stocks might continue their slide. There
might be some relief for the oil&Gas stocks like ONGC and Cairn India
as Oil moved up by nearly $ 6 in Nymex. Airline stock might witness
some pressure for the same reason. The fundamentals of Indian market
are intact, but stocks might witness some pressure in short term as
there are no buyers in the market and this is causing a steep fall in
the stock prices inspite of decent valuations.

Suitable Stocks for intraday today:
<ICICIBANK, RELIANCE, SBIN, BHEL, RELINFRA, ONGC, AXISBANK, TATASTEEL,
RCOM, PNB>

Market Close Box:
BSE Sensex 13262.90 -255.90
NSE Nifty 4008.25 -66.65
USD Rs.46.34
Oil Nymex $97.16

B.Karthick
Research Analyst.