Pre-Market Report on 30.09.2008

[B. Karthick]

Stocks set to plunge as markets across the globe melt down

Stocks are set to crash in the early morning trade as the rejection of
the bail out plan wiped out nearly 1 trillion dollars in market value
on Wall Street. All the global markets are witnessing a sell off as
investors are fleeing away from the markets. We see the market
plunging by nearly 4 to 5 percent in the open, but expect the markets
to pull back a bit towards the end of the day.

Congress called Wall Street's bluff Monday, and investors, savers,
retirees and employees around the world lost their shirts.While groups
of politicians bickered like schoolchildren over the failure of the
House of Representatives to pass Treasury Secretary Henry Paulson's
$700 billion bailout plan, the S&P 500 Index plunged to its worst day
since the week of the 1987 stock-market crash, wiping out more than
$700 billion in the index's market value.

Asian markets tumbled early Tuesday. The Nikkei 225 Average slumped
4.8% to 11,178.34 and the Topix index skidded 5.1% to 1,070.20.
Australia's S&P/ASX 200 index lost 2.8% to 4,674.50 and New Zealand's
NZX 50 index gave up 4.3% to 3,052.81. South Korea's Kospi fell 4.9%
to 1,385.79.

Oil prices plunged more than 10 U.S. dollars Monday as the veto of the
bailout plan exacerbated worries that economic downturn would further
cut oil demand.Light, sweet crude for November delivery slid 10.52
dollars to settle at 96.37 dollars a barrel on the New York Mercantile
Exchange.

Meanwhile the impact of the global melt down might be less severe on
the indian markets as we have seen a big fall yesterday in
anticipation of a crash in the global markets. An effective strategy
for the investors in the markets is to stay away from intraday and
short term trades and concentrate on accumulating stocks in defensive
sectors like Pharma. Overall a painful day, but the fall will not be
steep.

Suitable stocks for intraday today:
<RELIANCE, ICICIBANK, BHARTIARTL, HDFC, BHEL, RELINFRA, DLF, SBIN,
HDFCBANK, STER>

Market Close Box:
BSE Sensex 12595.75 -506.43
NSE Nifty 3850.05 -135.20
USD Rs.46.94
Oil Nymex $96.37

B.Karthick
Research Analyst.