Pre-Market report on 07.05.2008

[N.Sukumar]

Crude races ahead, Street refuses to see red
===================================================

Crude raced ahead to a lifetime high of USD 121.84 a barrel on NYMEX
while
wall street for a change (moving in the same direction as crude)
reversed
triple digit losses in Dow Jones to end in the positive zone at
13,020.83, up
51.29 points. Nasdaq closed the day at 2,483.31, up 19.19 points.
Cisco and
Disney declared better than expected results after hours. Japanese
markets
jumped on positive global cues and currently Nikkei is up 120 points
at
14,168.73.

BSE Sensex hit a second consecutive century loss yesterday. Many
stocks
looked weak yesterday with realty and infra sectors bearing the brunt.
IT is
showing strength again courtesy the falling Rupee. Bharti Airtel
missed the
call yesterday with bears attacking the stock on the news of a
potential
acquisition of a South African Telecom major.

We are extremely positive about this acquisition though like all the
major
deals the short term financial implications are a must. South Africa
is a
rapidly expanding market and MTN has a huge penetration in the
African
countries.

Yesterday's notable midcap gainers with volumes include Usha Martin
Industries, Polaris Software, Mcleod Russel, Gujarat State Petronet,
NIIT
etc. IT stocks are likely to be in the limelight in the next 10 days
as the
dollar is expected continue the upmove against the Rupee. Markets are
likely
to move up given the global cues.

Expect another round of fireworks in Titagarh Wagons and Tech
Mahindra.

Market Close Box
BSE Sensex 17373.01 -117.89
NSE Nifty 5144.65 -47.60
USD Rs.40.69
Oil Nymex $121.8

N.Sukumar
Research Analyst.