Pre-Market report on 10.04.2008

[K.Karthik Raja]

Midcaps on a high, Mastek, Yes Bank hit bull's eye.
Apr 10, 2008 |

Mastek and Yes Bank beat the street estimates and declared stunning
results
given the macro economic conditions. Both the companies declared
results
during market hours. Mastek recorded a 65 per cent surge in net profit
for
the third-quarter, keeping the track record of beating the estimates.
Mean
while with forex derivatives buzz surrounding the big corporates
including
banks Yes Bank stunned the street with better than expected results.
The
street welcomed the results with a 4.3 percent gain.

We do not expect simillar kind of performance from majority of the
companies
this quarter and companies which perform well in these difficult times
will
certainly stand out during good times. We identified one such Hot
Stock which
is promosing enough to become a multibagger in the next one year.

Midcap space is buzzing with activity, rightly so given the kind of
carnage
the domain has witnessed. We expect the trend to continue further and
large
caps for the time being are likely to take a back step. Nifty Futures
are
still trading at a discount and the gains in Nifty are minor in
comparison
with the Sensex. Orchid Chemicals lost sheen on the reports of
Ranbaxy
backing off from the creeping acquisition.

IT midcap stocks are in limelight on the hopes that worst is behind
and the
US recession will indeed boost the offshore business. Sugar moved up
yesterday, no particular reason though from the fundamental front.
Last 3-4
sessions witnessed rally from Tea, IT Midcaps, Sugar stocks and
Pharma
midcaps. We expect the rally to spread to other sectors too. But with
many
companies planning to declare their Q4 numbers along with the audited
annual
results in June the current gains in midcaps is just a mere recovery
after
the steep downfall. No doubt it is time to ride the midcap rally.
Indices
might drift down given the global negatives. A perfect trader's market
in the
offing today.

Market Close Box:

BSE Sensex 15790.51 202.89
NSE Nifty 4747.05 37.40
USD Rs.40.02
Oil Nymex $110.8

K.Karthik Raja